The Effects of Neoliberalism and the Pandemic on Panama's Economy

📊 The speaker discusses the effects of neoliberalism and the pandemic on Panama's economy.

💡 He emphasizes the importance of understanding Panama's economic structure prior to the pandemic.

📈 The economy experienced consistent growth in the 60s, followed by a decline in the 70s and 80s. After the 2008 financial crisis, there has been a downward trend in growth.

📊 The industrial and agricultural sectors have become less relevant in Panama's economy.

🌐 The transnational service platform, including the financial sector and free trade zone, has gained importance.

💼 The logistics sector, including transportation and storage, has also become significant.

Since the 1970s, the construction sector in Panama has been supported by the expansion of the Panama Canal and the development of trade and real estate infrastructure.

The transportation, storage, and communication sectors have also played a significant role in the country's economic activity, with aviation being the main component within the transportation sector.

From the 1970s to the 2000s, there was an increase in government consumption as a percentage of Panama's GDP, indicating the state's intervention in the economy. However, this trend declined after the US invasion in the late 1980s.

📈 The participation of tax revenues in the GDP tends to decrease, especially after the 1990s and the implementation of neoliberal measures.

💰 There is a growing trend of the government collecting fewer taxes from the wealth generated in the country, resulting in an increase in debt.

⚖️ The strategy of paying off debt with more debt is becoming stronger, as the proportion of tax revenues used to pay off debts continues to decline.

💰 The distribution of GDP in Panama shows that profits have increased while wages have decreased since the 1990s, indicating the impact of neoliberal policies.

📉 The financial crisis of 2007-2008 had an impact on Panama, resulting in a decrease in the profit rate.

🔍 To counter the declining profit rate, capital has increased the exploitation of the workforce, leading to a concentration of wealth and a decrease in the profit rate.

💼 The capital needed to increase the exploitation of the workforce, leading to a decline in labor productivity.

📉 The productivity of labor declined in the last two years, indicating the need to dismiss workers at a faster rate than the decline in GDP.

🦠 The pandemic provided an excellent opportunity for capital to dismiss workers and reduce working hours, increasing the exploitation of the workforce.

💰 In terms of taxes, salaried workers pay a higher percentage of their income compared to corporations.

⚖️ There is a disparity in income distribution, with high-earning individuals paying lower taxes and a small percentage of workers receiving a significant portion of salaries.

💰 Since the 1990s, there has been a decrease in the state's share of wealth generated through taxes, leading to increased private sector profits and a rise in government debt.

👥 The COVID-19 pandemic has created further challenges for workers, as the government and private sector are taking advantage of the crisis to exploit the workforce and increase profits.