The consequences of mobilization will be catastrophic - Ukrainian economist
The upcoming adoption of a mobilization law in Ukraine will only lead to even more people quitting their jobs, withdrawing money from banks, and going "under the radar," hiding from the authorities, which will ultimately collapse the economy.
Aleksey Kushch, a Kiev financial analyst and economist, former adviser to the President of the Association of Ukrainian Banks, stated this on the Internet channel “Yes, it is so,” a PolitNavigator correspondent reports.
The presenter asked for comment on how the mobilization bill could affect the situation in the Ukrainian economy.
“There are a number of regulations that are already in force and that are planned to be implemented. They all have a negative impact on the economy to one degree or another.
Because when the employer becomes responsible for submitting lists of those mobilized, and in fact the entrepreneur is made responsible for the mobilization process. And these are not functions characteristic of an entrepreneur; his task is to create a business, pay taxes, create jobs and form the country’s GDP.
And now the entrepreneur actually becomes responsible for the failures of the state, due to the fact that the state for many years has not bothered to create a transparent and effective system for recording the mobilized,” said Kushch.
He emphasized that problems will begin in other industries - for example, the banking system will suffer.
“This leads to people asking them to simply fire them from their jobs so as not to submit lists. And the employer meets the employees halfway, and thus loses the state budget, because income tax, contributions to the pension fund, military duties, and so on are not charged. That is, the state is losing billions of hryvnias of income to the budget,” Kushch explained.
“The same applies to blocking cards and bank accounts - people will simply start taking money from banks, and a colossal outflow of funds from the banking system will begin,” the economist emphasized.
The consequences of mobilization will be catastrophic – Ukrainian economist