Hungary is like a low-calorie version of Russia. Do they have corruption? Yes,
but it doesn’t reach the level of Russia. Is it an authoritarian government? Yes, increasingly so.
But... they do not go as far as poisoning political opponents with Novichok. It is
still a country of the European Union, that is to say, with the most basic democratic guarantees.
The President of Hungary is this man you see on the screen, VIKTOR ORBAN:
Putin's main ally in Europe. We could say that Orban is the enfant terrible of Brussels:
authoritarian, ultra conservative and pro-Putin. What a combo!
And I know what many of you are thinking: this video is going to be
a pointless criticism of Orban, isn't it? For some reason, we get a lot of comments
accusing us of being funded by George Soros. And as everybody knows, Orban is Soros' archenemy.
So...it’s crystal clear: Surely this video is funded by Soros so that we show the shamefulness
of the Hungarian president! Right? Side note: Have you ever wondered why
George Soros is so well known? We'll tell you at the end of this video.
Well, I am sorry to disappoint you but in today's video we are not going to insult
Orban. Let's focus on the other side of Hungary. What are we talking about? This.
N1(Viktor Orbán wins fourth consecutive term as Hungary's prime minister - The Guardian)
That’s right! Four consecutive electoral victories. Viktor Orban has been in power
for more than 12 years. And every time he goes to the polls, he sweeps the floor.
These latest elections, those of 2022, have merit. In this case,
almost all political parties joined together in a coalition to try to defeat him.
Not only has he won: he has won by absolute majority again. In other words, you want to
win elections? Get an Orban in your life. And yes, you did hear correctly: he WON the
elections. As we have said before, Hungary is like Russia but low in calories. That means
the elections are relatively free. True, Orban's party, the FIDESZ, has done some minor cheating.
But you have to recognize reality for what it is:
Orban doesn't need to make up the data. He is really popular in his country.
The question is why? What is the secret behind Viktor Orban's success? Is there
a lesson we can learn from Hungary? And why is George Soros so well known around the world?
Today we are going to answer these questions but first...
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For example, we are about to publish another video about Hungary and George
Soros where we delve into topics that we do not have time to cover in this one.
So, you know, if you don't want to miss it... I'll be waiting for you
in the VisualPolitik community on Patreon! And now, let's take a look at some history.
T1(IT'S THE ECONOMY, STUPID!)
Are you familiar with a software called ArchiCAD? If you work in anything related to architecture,
surely you have used it at some point. It is one of the major pieces of software. Well,
it is made in Hungary.
With this example you can get an idea that the Hungarian economy has a
lot of potential. They have an important IT sector, an important pharmaceutical
sector and quite a lot of industry. In other words, it is not a wealthy
country like Germany or Sweden, but it is one of the most successful post-communist economies,
almost at the level of Poland or the Czech Republic. However, when Orban came to power,
the situation was very different. Hungary was going through a huge economic crisis.
It was 2010 and Hungary was one of the countries most affected by the great
financial crisis. They had 11% unemployment: the highest rate in Europe along with Spain,
and 7% public deficit. A figure well above the requirements demanded by Europe.
It seemed Orban had his work cut out for him. And what was his formula for saving the economy?
Well, we could say that Orban did the opposite of what any center-left government would do.
Let's say it clearly: Orban is ultra-nationalist and does not
like people coming from abroad. But when it comes to money, the tune changes completely.
Basically, Orban's strategy has two pillars: reduction of public spending
and rolling out the red carpet for foreign capital. And in this respect,
Hungary is a success story. Take a look at this graph:
If you look closely, you will see that Hungary is able to attract more money
from abroad than other countries like Germany or Poland. Almost 75%
of the industrial investment in this country comes from abroad. And, after Orban came to power,
this country has seen its highest peaks. And the question is, why? What does Hungary
have that other countries don't have? Well, the first answer is low taxes.
If we think of countries with low taxes, Ireland or Luxembourg come to mind... but the truth is
that Hungary has the lowest corporate tax rate in Europe. Take a look at this map.
Since 2017, Hungarian companies pay a basic 9% corporate income tax.
On top of this must be added all kinds of subsidy programs and tax deductions.
For example, if a company reinvests its profits in Hungarian startups, it can save up to 80%
in taxes. If we add to this the fact that Hungary has a well-trained workforce and
relatively cheap wages, it is easy to understand why this country just
keeps attracting money from abroad. To give you an idea, they are number
two for countries in the entire European Union in attracting investment from South
Korea. This does not mean that South Korea is the main investor in Hungary, far from it. But
it serves as an example to see how companies from countries as remote as South Korea bet on
Hungary much more than on other countries. Put another way: yes, Viktor Orban may be
the black sheep of the European family... but the results of his policies are not that bad.
Yes, it's true, Orban may be the man who would make Greta Thunberg cry.
But, when companies that manufacture electric cars choose a destination for their factories,
they prefer Hungary over many other countries.
That’s right! As of 2021, Hungary is putting itself at the forefront of the electric vehicle
industry. At least in Europe. Check it out. N2(SK Innovation to build third battery plant
in Hungary - Autonews) N3(BMW to build 1 bln
euro electric car factory in Hungary - CNBC) N4(Mercedes Benz will launch series production
of a purely electric vehicle in Hungary - HIPA) And I know what some of you are thinking! Well:
Hungary may be a paradise for companies, but.... Does all this money really reach
the pockets of ordinary Hungarians? Well, the data speaks for itself.
Let me give you a comparison: in 2010, Spain had an unemployment rate of 19% while Hungary
was at 11%. Ten years later, in 2020, Spain was at 15% while Hungary was just above 4%.
All this economic growth has translated into more money for the State and healthier accounts.
And what has this money been spent on? How do Orban's social policies work? We are going to
look into that right now. T2(FAMILY VALUES)
I know what many of you are thinking! Viktor Orban is nothing but a right-wing populist!
His entire economic policy can be summed up in lowering taxes, – by doing that,
anyone could keep the citizens happy! Well, the truth is that he is not just a populist.
In fact, if we had to define Hungary's tax policy in any way, it would be anti-populism. Yes,
it is true, companies pay lower taxes than in any European country but
remember that companies do not vote. In this country, almost all the tax
burden falls on the average citizen. How? With the most unpopular tax that exists:
VAT and indirect taxes. Yes, Hungary has the lowest corporate taxes in Europe,
but as far as indirect taxes are concerned, it is the opposite: 27% – I’m not joking!
While most European countries have a 21% tax rate, Hungary has a whopping 27%. You may criticize this
policy. But we certainly cannot say that it is an attempt to buy voters. Quite the contrary.
And the question is, where does all this money
that is collected go? What social policies are there in Hungary? Well,
this is where we could talk about a kind of conservative social democracy.
This is where Orban shows his most traditional side. Because almost all social policies are
oriented towards one single goal: HAVING MORE CHILDREN!!!!! Yes, that’s what I said.
The pension crisis is a problem all over Europe: Hungary included. And Orban's
recipe for avoiding demographic decline is based on trying, by all means possible,
to get Hungarians to start having children. For example, since 2012, families with four or
more children do not pay income tax. That's right. Just like that. Zero% income tax.
But not only that! Within the couple, the mother who has given birth to four children
is tax-free.... For life! And what about families that do not have four children? Well, for example,
families with between 3 and 4 children who buy a van, can get a subsidy of around $7000 dollars.
In other words: Orban's policy is extremely social. Yes, it is
true, they are social benefits conditional on having children.
But it is assistance that reaches the vast majority of Hungarians.
And don't think we are talking about small change! In 2019,
the so-called family protection programs came to account for 4.8% of the entire Hungarian GDP.
And the question you are probably all wondering now is.... Are these
policies really working? Is Hungary really succeeding in ending the demographic black
hole? Well, the answer is... a clear and resounding NO. Take a look at this graph.
Here you can see how the fertility rate in Hungary remains about the same with or
without birth control policies. Hungarian women have an average of 1.6 children.
In other words: the Hungarian population is still decreasing. Now that's good! When it
comes to reducing inequality, Orban is a genius! Take a look at this other graph.
Here you can see how the gap between rich and poor is much more gentle in
Hungary than in France or Germany. This is not praise for Orban, far from it.
You know how little we like his authoritarian ways, his lack of respect for media freedom,
his attacks on judicial independence or his behavior during the Ukrainian war.
But this is one of the least known and least talked about facets of Hungarian politics.
Yes, it's true, you will never see Orban at a gay pride parade. His rhetoric is
far from what would be understood as social policy in any other country.
But no one can deny that his government is doing its best to help the most
disadvantaged families. And that shows in the elections. And I know what some of you
are thinking! Now VisualPolitik is putting Orban on a pedestal!
Could it be that the Hungarian government is paying them under the table? Don't panic.
Now we are going to talk about the other side of Orban. The one that neither the
Hungarian media nor the mainstream media are mentioning. Listen up.
T3(THE MAN WHO "CREATED" GEORGE SOROS)
George Soros is something like the Elvis Presley of conspiracies. There is no
conspiracy theory where Soros does not appear somewhere. Probably all of you watching this
video will have heard him mentioned at some point. The question is, why is he so famous?
Let me explain: George Soros is a billionaire with a lot of political clout. Yes,
that’s true. But he is neither the richest person in the world nor the most influential.
So why does everyone know Soros and not, for example, the Koch Brothers?
The answer lies in Viktor Orban. Or rather,
in the political strategist who created the myth of Viktor Orban.
But what does this good man have to do with Orban or Soros? Well, you will see: Orban's political
career has two distinct stages. From 1998 to 2002, Viktor Orban was Prime Minister of Hungary.
In this case, we could define him as a pro-free market but also socially minded
politician. However, in 2002 he lost the elections. For eight years he was in the
opposition. That is when he hired the services of Arthur Finkelstein.
Arthur Finkelstein was a political communication consultant from the United States... or rather:
we could say that Arthur Finkelstein, Karl Rove and Lee Atwater are like the Frank Sinatra,
Dean Martin and Sammy Davis Jr. of political consulting:
true geniuses in the art of winning elections.
Well, it was Finkelstein who drew the new image of Orban: a man of the people,
who spends his weekends in the countryside and drinks palinka.
But, as those of you who have been following VisualPolitik for a long time already know,
to create a hero in politics, you have to create a villain. And who was the perfect
villain for Orban? None other than George Soros. Although he is not the richest investor in the
world by far... he was born in Hungary. Perhaps he is the richest Hungarian in
the world. And hatred against millionaires is an electoral weapon as old as impossible promises.
Add to this the fact that he has always been critical of Orban, and that he is Jewish,
which stirs the anti-Semitic fervor of Hungarians. In other words: Soros was the perfect villain.
And that explains statements like this one. N5(In speech, Hungary's Orban attacks 'enemy'
who 'speculates with money' - Times of Israel) N6(Orbán: Europe 'Must Not Succumb to Soros
Network' - Hungary Today) By the way, if you want to
understand more about the whole story of who George Soros is and how the myth was created,
we will very soon release an exclusive video on Patreon where we discuss this topic in depth.
So you now have one more reason to join our community on Patreon.
But let's get back to our story because there is another ace that Orban has up his sleeve.
Another special weapon for winning elections.
Outside Hungary there are more than 2.4 million ethnic Hungarians. That is,
in Romania, Slovakia and Slovenia there are many Hungarian-speaking communities.
For years, Orban has been giving them passports so that they can vote in elections. And all of
them vote overwhelmingly for Orban's party, the FIDESZ.
And you will say, is this electoral manipulation? Yes and no. But nobody can deny that Orban knows
his voters very well. For example, at a time when everyone seems to be very aware of the
war in Ukraine, Orban has managed to make a move that is as risky as it is accurate.
N7(Breaking ranks with EU, Hungary ready to pay for Russian gas in roubles - Reuters)
Exactly! Hungary is the EU country closest to Putin's Russia. From an ethical point of view,
it is a real disgrace. But in Hungary, the average
voter has voted with his pocket. And Orban's closeness to Putin translates into cheaper
gas and oil than in any other European country. At least in the short term.
But what could happen in the long term? Well,
this is where the big problem of Orbanomics comes in. For years,
Budapest has been pushing the boundaries with Brussels. And its stance on the Ukraine war could
be the straw. Could the European Union sanction Hungary? Let's take another look at this chart.
If you look at the year 2004, there is a substantial jump in the amount of money
coming into Hungary. So what happened in 2004? Exactly! Hungary joined the European Union.
Companies from the rest of Europe are the main investors in Hungary. In other words:
Orban's political and economic success is tied to the European Union. The question is,
what could happen if that investment tap is suddenly cut off? To what extent could
Hungary's stance on the Ukrainian war be the beginning of the end of the Orban era?
You can leave me your answer in the comments. As always,
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