Submitted by Looking Glass
First, to a former Press Secretary and those who dictated the critique to Using Economics For Political Ends. Morality, like integrity, is not served by politicians or party supporters serving their own personal ends. Dialogue requires socio-political responsibility, and at least a minimum of transitive consciousness which does not exist under conditions of immorality. The long rant, devoid of real substance and unfit for rumshop vituperation, appears to be the product of a paralytic mind(s) unable to adjust to the shifting sands of reality. A peacock flipping its intellectual plumage on audition would do a better job. Even the BLP columnist placed you in the backward category (Nation 22/11/2006)
Re the Senator’s utterances as reported by you: had you heard what was said about ‘you’ and the projected outcome, you would seek refuge in the Essequibo. Fear not, it is just a matter of time.
According to Mascoll those concerned about the growth of the national debt “which doubled from $2.5bn in 1994 to $5.5bn at the end of last December should not just look at the size but its structure….the recent increases have come from the domestic side of the equation and not the external debt.” (Nation 07/19/2006). Really? At last check the total national debt was about $45bn (why so low is another matter) of which about $36bn was foreign. The last regime’s share was $20bn including $16bn foreign debt give and take a few pennies. Are we turning peanuts into pounds? Am I to understand that most of the $3bn increase in the above stated period came from the public (domestic) sector? If so revision of the GDP may suggest that the country is in worst shape than indicated.
Yes the economy and country is in bad shape, some say approaching the terminal stage. And yes there is no easy solution. Meaningful recovery requires a radical downsizing in living standards (already underway) and socio-psychological standards. That said it is irresponsible, false, unjust and immoral to hold the present administration responsible. The economy didn’t move from bountiful to grossly negative in the last two years. All leaders make promises at election time—that’s the nature of the game—.Can you name one who fulfilled them from an empty bucket? Growth as you understand it cannot resume until the debt burden eases.
Senator Holder tells us that “in the span of less than two years the administration has presided over an economy that was left in good hands, but has allowed unemployment to rise from 6.7% to 10.5%. (Advocate 21/12/2009). A month later Mascoll tells us that the economy performed much worst than expected in 2009 because of “a difficult external environment and some poor policy choices…. The unwarranted heavy taxation created a larger working poor population who continue to live of the knife’s edge, given the mortgage commitments, car loans, rising costs of health, home and car insurance, the bemusing food bills and utility bills, to mention a few.”(Nation 1/15/2010)
Is government supposed to pay the household debt and support the living standard of its people? Are we the children of government? Take Old Year’s fete admission per soul: $400.00 plus at the DH, $300.00 at another. And no rum please I was told. Food prices high but we can’t plant two tomato or pea trees in the back-yard. Times are tough but we want a four day work week. Is this category of persons included in the “larger working poor population”? If so reality is exaggerated. Comic books make more sense.
“Mortgages are now forty year affairs.” That statement (and discussion) made some years ago led to a year long study. One of the findings was that a family of four with a maximum after tax spending income of $3000.00 per month, having to meet mortgage and car commitments and eat reasonably well couldn’t save $300 per month. The two “Powers” of the day requested the author not to publish it. Since then household debt has skyrocketed and a large number of the “big homes” sold to expats. Today more than 500 homes and chattels in St Michael, St George and St. Phillip are listed on Cariblist.com.
The IMF statutes require the Fund to adopt policies “that will assist members to solve their balance of payments problems…These clauses confer on the IMF a blanket authorization to organize its borrowers’ economies as its own lights.” (A Fate Worse Than Debt). The current recommendations are not really dissimilar to those given to the last regime. Had the last government been successful as we are led to believe the IMF would not have been around today. The present regime has no option than to comply. There is little left to privatize or sell beside land and a few buildings.
Under the IMF states are generally confined to infrastructural investment. The jobs generated by infrastructural development are mainly of the short term variety. Otherwise it is savings and investment not government or budgets that create real jobs and earnings. As per the dictum from on high government has no business in the private sector. The global meltdown required the advanced economies stimulate there economies, but note the industries involved. We have no industries to stimulate that would create work for the 4000 souls who lost their jobs last year.
Direct foreign investment is largely devoted the tourism side—hotels, villas and luxury accommodation—Much of the construction and related jobs are of the short term variety. Permanent jobs for a certain class of locals will likely be few in number. Countries like companies must compete in producing the most value at the lowest cost.
Where marginal cost of government is not competitive we will continue to experience lost of the remaining productive capital. There is no guarantee that social and other sacrifices needed to bring order to the econ-financial condition with will yield long term returns.
That said look around you. The die is cast. Resurrection and refurbishment of the “Sceptred Isle” is well underway. For whom the bell tolls.
The blogmaster invites you to join the discussion.