Double Christmas bonus that causes companies to close

Truth hurts and this striking Editorial from El Diario defines it clearly:

The government, long before imposing the payment of the “double Christmas bonus” that already was fulfilled in several years, has full knowledge of the algid situation of the companies of the country; knows that most of them face situations of financial failure, that their sales of products or services have decreased, that operating costs have risen, that they have the continuous pressure of taxes; who are threatened by strikes and sttopage; in short, is aware that there are no investments of financial capital, technology and human values.

However, it has persisted, in the last administration of 2018, that the double Christmas bonus be paid due, it was said, to “growth greater than 4.5% of the economy,” when it knows very well that this percentage is nominal and almost without any value because the truth is imposed on the day to day, showing almost the recessive processes of our economy, that the exploitation and commercialization of gas has decreased, that many of the gas fields are about to decline completely.

In many entrepreneurs the question arises: What have we done as entrepreneurs, especially medium and small businesses, to support impositions that can not be met? Where can we get more money if for previous payments of the double Christmas bonus we have had to mortgage some of our belongings? How and with what can we comply with the impositions of this new obligation that seems to be permanent and increases in wages and salaries? Many, too many, they point out, have contracted debts with banks and for the most part we do not know how to pay the amortizations with the respective interest. Our sales have dropped substantially because smuggling is an impossible competitor to stop and that every day imposes more; and, most serious, the unemployment that increases.

Closing companies has been the great solution for many entrepreneurs; But at what cost? Sacrifices and efforts of many years, increasing indebtedness must be covered and there will be no production for it. This means that many private companies that have closed businesses will have to sell what little they have left or, in cases, totally reduce their belongings and move their new poverty situation to any other country, where, necessarily, to be able to settle and start over, they must contribute money, a money that there is not, and in a few cases you could still resort to credits.

The situation has become tragic for many entrepreneurs; however, there is a kind of “infatuation” of some big businessmen who, despite facing difficulties, have the means to get out of difficulties. The institutions that shelter them and that should be in their permanent defense, do little or nothing, be it due to fear or simply lack of courage and energy to demonstrate the situation of failure of companies unable to withstand a situation that becomes more difficult. However, employers still believe that the government, as part of its duties and responsibilities, will have to remedy the serious situation.

Bolivian Thoughts opinion: As I finish reading the above, I realize most of us still expect evo’s government to act accordingly, that is, govern by helping the people, the citizens of Bolivia … but I realize that evo never, repeat never, intended to do this, he is just an egocentric autocrat that only wants to remain in power, he did not care of indigenous peoples, nor Mother Earth, so, how could he care about the entrepreneurs?! Like most socialist advocates, who merely destroyed the nations where they intervened, evo is like Lula, Chavez, Maduro and Ortega.

Published by Bolivian Thoughts

Senior managerial experience on sustainable development projects.

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