Montijonomics
 Galilea Montijo, 4th Federal Representative of Oportia | |
| Overview | |
|---|---|
| Key policies | |
| Federal Representative | Galilea Montijo |
| Taxation | 15% flat income tax, negative income tax for low-income individuals |
| Privatization | Extensive privatization of state-owned enterprises |
| Trade | Export-oriented policies, reduced trade barriers |
| Resource exploitation | Accelerated Alexandrium mining and export |
| Part of the Economy of Oportia | |
Montijonomics refers to the economic policies implemented by Galilea Montijo during her tenure as Federal Representative of Oportia from 1730 AN to 1739 AN. These policies were characterized by a strong emphasis on economic liberalization, privatization, and export-oriented growth, underpinned by the exploitation of Alexandrium resources. Montijonomics represented a significant shift in Oportian economic policy, moving towards a more libertarian, market-driven approach.
A cornerstone of Montijonomics was the comprehensive tax reform introduced through the Oportian Economic Opportunity Act, 1731. This legislation established a controversial flat income tax rate of 15% and eliminated capital gains taxes. To address income inequality, the act implemented a negative income tax system for low-income individuals, effectively replacing many existing welfare programs with a streamlined system of direct payments.
Privatization was another key aspect of Montijonomics, as exemplified by the Federal Privatization Act, 1732. This act initiated the process of privatizing major state-owned enterprises, including Oportian Energy Solutions, the Oportian Manufacturing Corporation, and the State Shipping Corporation. While this drive towards privatization faced significant opposition from labor unions and left-leaning parties, it was central to Montijo's vision of a more efficient, market-driven economy.
Montijonomics also placed a strong emphasis on boosting exports and international competitiveness. The Oportian Export Boost Act, 1731 reduced trade barriers, provided tax incentives for export-oriented businesses, and established special economic zones. This focus on exports was complemented by the aggressive exploitation of newly discovered Alexandrium deposits, which became a major driver of Oportia's economic growth during this period. While Montijonomics led to unprecedented economic growth, with GDP growth averaging 7.5% per year during Montijo's first term, it also faced criticism for exacerbating income inequality and environmental degradation, particularly in relation to Alexandrium mining.
