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The business thinks about death

Бизнес думает о смерти

Many Russian entrepreneurs in a crisis associated with forced idleness and the fall of the ruble, were on the verge of bankruptcy.

The Russian President in address to the nation in connection with the spread of the coronavirus has announced the current week outside of working for the Russians at the expense of the employer. Instead, the business has been promised a grace period on loans, interest-free Treasury bonds, lowering insurance premiums, and citizens, some of which will inevitably be fired — some increase of unemployment benefits and vacation credit. How effective are these measures — given that the economic situation will continue to deteriorate rapidly?

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Dmitry Potapenko, the owner of:

Бизнес думает о смерти

“And where is this help, what is it? Now we have already the beginning of April, and the epidemic is in December, and the dam has, at least, two months. Promises of cutting social contributions — it does not help, and if the wreath at the cemetery. Deferred taxes and credits — it is not a measure of support, and what is called straight, a cynical mockery. Like you we still pay… And where to get the money? This method gangsters nineties used: let no money, but I then will work.

Any support measures it is not accepted and to accept their not going to. It is clear and obvious. There is only the image of political PR for people who are not faced with that, for example, work in the public sector, in order to tell them: look, we support the business. But no plan and will not do.

Maybe there are people who count on our police, posing as government, but the only action that they can apply, we see — the laws, dies solely to say: shut the hell up and that we are on the ridge broke.

Therefore, to die, apparently, we’ll be in the basement of another Department “Far”, stick your fingers in your mouth. Nothing new.”

Andrey Kuprikov, the businessman:

Бизнес думает о смерти

“Small and medium businesses are in and out. Their close to the cemetery. The measures are being undertaken to support, at first glance, correct and timely, but they solve a local problem. Well, maybe for two or three months they will reduce the pressure, but will not remove the fundamental distortions in the economy. Therefore, there needs, in my opinion, drastic measures, the revision of both fiscal and monetary, and credit policy. The time has come to do it.

So let’s say that small and medium businesses met the declared measures of support and understanding, if not satisfaction, with a kind of hope. But he still expects a fundamental review of relations with the state.

The main thing that is annoying is how they will be implemented. Often on the ground everything is being done exactly the opposite. And now the big question how will be executed of government regulations and presidential decrees.

Moreover, the problems affect a fairly large number of people, but all measures of support, you can easily cancel when the viral fever subside. There is no guarantee that all will return to normal. And remember all of the underpayments that were in this period.

Small and medium business from the state is waiting for a few things. First, this exemption generally from some taxes up to a certain turnover. Well, let’s say, companies of 50 people and with a turnover of 10-15 million a year, in my opinion, should not have to pay any taxes.

Second: there must be urgent change in the monetary policy should be eased access to Finance. And third: the urgent need to take measures No. 44-FZ on public procurement, because it is subversive and does not allow small businesses to participate in public procurement.

Of course, taxes should be reduced only for the real sector of the economy, for the production segment, where people are doing something, well, to trade. But I, for one, do not think that tourism or show business in need of some assistance. And, of course, the financial sector — banks, speculators today should not have access to any aid, because largely through their efforts that we approached such problems and distortions, in fact — to the collapse of the economy.”

Anna Ochkina, head of the Center for social analysis IGSO, sociologist, candidate of philosophical Sciences:

 

“Many entrepreneurs do not touch any support. The big problem is that many of them do not registered, even as self-employed. Because of this, they would not exist for the economy. You can, of course, to say that this is their problem, but that does not make them more peaceful. Now there is a sharp decline in demand in the service sector, associated with restrictions of movement, and it hits precisely on such self-employed.

Support measures for entrepreneurs was mainly associated with deferred loan payments. But this is only a postponement. Let’s see how long will last the quarantine measures they need to assess how much the demand will subside in the whole country and how big is the damage. But many very small enterprises, think, ruined, as well as self-employed because they have a very small “safety cushion” — the money savings, etc.”

Andrey Nechaev, eks-the Minister of economy of the Russian Federation, doctor of economic Sciences:

 

“The announced measures of support, of course, useful, but, from my point of view is not enough. Now small and medium businesses are especially affected by restrictive measures sectors — retail trade, catering, tourism, hospitality are just in a tragic situation.

Basically, the measures proposed by the President and the government of the various kinds of benefits. Reducing premiums — that is what business has long been sought. I have two hands “for”. The same — and to delay the loans. But now the business in some sectors has actually stopped. Therefore, they need no benefits, and cash.

And the decision about the output week — it was a big blow. Costs actually paid by businesses. Speed in those days was not, the revenue was not, and the salary to be paid. And if the shutdown period will continue, this will further aggravate the situation, especially in small and medium-sized businesses, because they have no reserves, unlike large companies, they have much less accessibility to credit. Therefore, it is clear that they will people to furlough, at their own expense, to take some measures to reduce costs. But still the costs remain and the income is zero. Therefore, they need to give not just the benefits, and cash, well, at least soft loans. How to do it — there are different options, but only it must be done quickly — through funds of support of business, you can still come up with something.

With a population the same situation as with small businesses. I would support a priority. He has six years of falling real incomes, and now it is clear that there will be a new inflationary shock as a result of devaluation, will be a reduction of income, rising unemployment due to the situation with small and medium-sized businesses that we are discussing. Again — you give people benefits. But this is not enough. I would now advance indexed pension, have substantially increased the allowances for children are abolished the income tax for the poor and within the financial possibilities of the budget, of course, first and foremost for the poor and families with children — would make direct cash payments. The way it does now trump, as is done in Germany, where the government pays unemployed people.

Elementary need to give people money. This, by the way, will serve and support the business. The poor, pensioners do not accumulate money — they’ll carry them to the market, increase demand and thereby support the same business.”

Oleg Komolov, candidate of economic Sciences, associate Professor, Financial University under the Government of the Russian Federation:

 

“If we look at what expectations the business has in relation to the state, they are often expressed in the hope for different forms of support — in the form of subsidies, grants, various forms of interest-free loans. However, in order for the government to implement such support, it had before, in previous years, to carry out a stricter fiscal policy. If we look at European countries, on the United States, where the state substantially fills the business liquidity, maintaining it in a crisis, so there is a level of tax burden on the economy is much higher. If you look at the share of budget revenues in Russia’s GDP is around 35%, while in France 56%. In France, the state accumulates a large share of national income and in a crisis could dispose of it to support different industries.

But we walked for a long time with the slogan “not koshmarit business”, and the President said that all countries are jealous of our flat rate of income tax. Well, now the state has no sufficient funds in order to support the economy in the form of various subsidies to certain industries.

The question here is this: if you want support from the state, you have to be willing to pay more taxes and accept more active role of the state in the redistribution of national income. Money out of nowhere to take I can not. But low taxes in the past is not now possible to support all those who need this support.

We have assumed? Profit is payment for risk will tell you of any entrepreneur, so don’t touch my profit and leave me alone in terms of economic growth. Well, when the decline begins, all businesses run with an outstretched hand to the state. And in the sphere of big business, the state nationalisim the bankrupted banks, flooding them with liquidity in a crisis, buys toxic assets from commercial structures. Well, that is actually takes care of all their costs. All previous half-century in the world exactly what happened: the government privatized the profits and nationalized the losses.

But for the most part small business, it’s not even a business, from the point of view of economic theory. A self-employed who work without hiring labor. The problem with these people is that they have no normal forms of employment, they are unable to realize themselves, by working for hire, and therefore were forced to work on their own, even depriving themselves of the mechanisms of social protection available to people working under an employment contract. And an emergency situation is difficult to solve some immediate measures. Now, in the crisis, manifested contradictions of the Russian economy, which developed over decades. It is clear that now the self-employed will dramatically outraged. But ask yourself: what did we do, that public policy was different? State exactly what we deserve, and it behaves as we let him”.

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