Are Fiscal Policies Ineffective in Times of Crisis?

“Rich because of you, prosperous because of your wife,” my friend jokingly says whenever we talk about business. As a building materials trader, he owns a warehouse with trucks constantly coming and going, serving construction projects of all sizes throughout Hanoi. However, recently, the real estate market has faced difficulties, leading to fewer projects and his trucks spending more time in the garage than on the road.

“Fiscal policies at this point are like a grain of salt in the ocean, they don’t make a difference,” he sighed, taking a sip of tea, his voice filled with worry.

His words made me wonder. Are fiscal policies truly “powerless” when the economy faces hardship, or are there other underlying causes?

Analyzing the Problem: When “Fiscal Policy” Meets “Dead Ends”

Fiscal policy is a crucial tool used by the government to regulate the economy. By adjusting taxes and government spending, the government can influence aggregate demand, thereby stimulating economic growth, controlling inflation, and creating jobs.

However, the effectiveness of fiscal policy depends on various factors, including the actual state of the economy. When the economy reaches a “dead end,” facing severe difficulties such as an economic crisis or a prolonged recession, the impact of fiscal policies can be limited.

The “Dead Ends” Faced by Hanoi Trucking Businesses

The transportation industry in general, and the trucking sector in particular, are facing numerous challenges. My friend shared that, in addition to the frozen real estate market causing a decline in demand for construction material transportation, the rising fuel prices also pose a significant burden on transportation businesses.

Furthermore, complicated administrative procedures, high logistics costs, and fierce competition are also obstacles that hinder many trucking businesses in Hanoi, especially small and medium-sized enterprises, from thriving.

What are the “Solutions” for the Trucking Industry?

To alleviate the difficulties faced by the trucking industry, in addition to timely support policies from the government, businesses themselves need to proactively adapt and enhance their competitiveness.

Mr. Nguyen Van A, a hypothetical economic expert, suggests: “Trucking companies need to innovate their business models, apply information technology to management, efficiently utilize resources, reduce costs, and improve service quality.”

Conclusion: “Fiscal Policy” Needs to Go Hand in Hand with Business Efforts

Fiscal policy is an important tool, but it’s not a “magic bullet” that can solve all economic problems. Overcoming difficulties requires a synchronized combination of appropriate macroeconomic policies and the self-efforts of each business.

If you are interested in box trucks, light trucks, vans, 1-ton, 2-ton, 3.5-ton, 8-ton trucks and want to learn more about financial solutions for your business, please contact XE TẢI HÀ NỘI at: 0968239999, Email: [email protected] or visit us directly at: TT36 – CN9 Road, Tu Liem Industrial Park, Phuong Canh Ward, Nam Tu Liem District, Hanoi.

We are always ready to accompany you!