ECONOMIST SIR FRANK ALLEYNE says one of the reasons why Barbados was in the current economic mess was the country’s failure to pay workers based on productivity. Sir Frank, one of the Freundel Stuart administration’s trusted advisers, said yesterday that had the various governments followed through on the productivity focus after the 1991 economic crisis, many of the problems the country faced might have been alleviated. […] Sir Frank said the centrepiece of the structural adjustment programme was productivity enhancement.
Prior to May 24, 2018 the constant national refrain was that the economic and social state of the country had deteriorated to an unacceptable level. This position was punished by the electorate in unprecedented manner with the Democratic Labour Party (DLP) being inflicted with a 30-0 defeat. The simple tranlation of the result, the people are not happy.
It should be of concern to sensible Barbadians everywhere the vitriolic and uninformed political debate which has emerged in recent years. It is a predictable debate and often sees a predictable response by incumbent governments. The politically aware have stated the primary job of a political party is to find a way to stoke popularity.
In a well meaning democracy the needs of the people should be the prime objective. There are listed as being able to promote unity and tranquillity in the domestic space, ensure justice for all, defense and safeguard the welfare and liberty of all the people – What is the purpose of government?. The opposite view is that no government is perfect in the vision or execution. How we govern is a man made construct and susceptible to the fallibility of man.
A couple weeks ago the blogmaster was motivated to write about the predictability to what has translated to a worrying crime situation. The same can be transposed to how we have and continue to govern ourselves. This blogmaster has been at the dashboard from 2007 and have been positioned to view the workings of political operatives having reason to interact with prime ministers, senators, ministers in government, surrogates, political talking heads et al. They operate with the same intent. They are driven by greed and an a destructive value system.
Barbados is a tiny island and if well managed with realistic objectives should satisfy the purpose of government. Instead we have allowed behaviours to be greatly influenced by popular culture. This has created the recurring dysfunction of government we have become mired. This week we learned about the many many PSV permits the outgoing government issued before demitting office -on the most profitable routes. A portfolio led by Michael Lashley. Prior, this blogmaster is aware of many PSV permits issued by Gline Clarke. We are aware there was financial benefit accrued to decision makers. This is one example of how greed and corruption as eventually led to an insolvent Transport Board taxpayers are left holdoing the bag.
Look in the mirror people!
Sensible Barbadians should have the capacity to view how systems of government are in decline across the globe. If we fail to show the courage to disrupt the current trajectory there is a predictable inevitability to how it will end for us.
In an situation where austerity measures have to be taken, one expects constituents being impacted to voice concern. One also expects the government charged with managaing the process to admoister it as humanely as practicable. As important is for civil society to be resonsible in voicing feedback.
It seems to this blogmaster we are in danger of being subsumed by a destructive rhetoric motivated by egocentric thinking.
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351 responses to “The Rhetoric of Austerity”
Mariposa
Sir you were the bearer of the news to me which makes u the messenger
By delivering the news it meant you (would )have heard source through word of mouth either in person by another messenger or was at some time engaged with alternative sourcing
Reason why i particulary told you to retreive the Truth of what you.were told or heard from the messenger
However or by what means delivered to u there had to be a source from where you received the message
Be that as it may Verla has her work cut out in very hard manner
It might not be pleasing to all
However she knows what the role entails and she is capable of standing on her own two feet even when michievous outside interference stick there dirty noses around looking for bad news
My advice to her is to stay the course
In the meanwhile she should grab hold of any opportunity available to up de thing on this inept govt performance with there intentions to strangle the barbadian household into economic dislocation
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Mariposa
Btw it is nigh to near impossible for me to be several people acting as many
This flooish maniacal belief that is often attached to my personality as onr of many writers flies in the face of logic
Speaking of many
Could it be that Albert Brandford a blp.acolyte has turned in his red colored robes for another color of his choosing
It as if he has seen a blinding light which gave him cause to remove his blinders
From his many comments or maybe his advice to govt his comments reflect dissatisfaction in more ways than one
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Artax
Hmmmmmm…….
Okay, no problem. But I reserve the right to refer you to your comments and “advice,” whenever you use the phrase “word on the streets.”
“Be that as it may,” I hope you won’t become offended if I “told” you Mottley’s supporters equally have the right to likewise opine she “has her work cut out in very hard manner (because of the economic mess created by your inept DLP administration) and it might not be pleasing to all,” (as is evidenced by the “gloom and doom” and dissatisfaction you express in the majority of your contributions).
Also, “however, she knows what the role entails and she is capable of standing on her own two feet, even when mischievous outside interference (such as you), stick there (their) dirty noses around looking for bad news,” (also evidenced by the content of the majority of your contributions).
Perhaps their “advice to her is to (likewise) stay the course.”
Anyhow……. the roles have changed, those who resisted “gloom and doom” are now preaching “doom and gloom.”
So, enough of this banter.
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Artax
“This flooish maniacal belief that is often attached to my personality as one of many writers flies in the face of logic.”
No…… it does not fly in the face of logic.
It is possible for different people to comment under the SAME name. In your case, there is “Mariposa” who is incoherent and unfocused…… and then there is this particular “Mariposa” who is a bit more articulate and focused.
Similarly to “legion, because (they) are many.”
Is this the same Albert Branford members of the consortium used to cuss prior to May 24, 2018, and is now being herald?
I know it’s unlikely for you to resist responding, because you must always “have the last word.” So, according to David BU, “you may have the last word.”
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Tron
@ Artax April 14, 2019 12:41 PM
Fire Verla? Really?
Who should replace her? Let me guess …
Donville Inniss, a minor criminal and distributor of adult entertainment?
Chris Sinckler, world record holder in financial illiteracy and rapist of the local economy?
Or any other local villain who promises social benefits to the clueless masses but squeezes them out with taxes like old lemons, lives in a chic villa with a swimming pool himself, drives a Mercedes and has a second passport for the USA, Canada or Switzerland?
I was at the Saint Nicholas plantation today. The distance between plantation owners and slaves was no greater than between the DLP grandees and the stupid masses who still vote for DLP. I’ll bet that this mob would even enslave locals and sell them to Saudi Arabia to finance their corrupt lifestyle. They are like local priests preaching water to others, but cooling their own butts in the leather chair of their Mercedes.
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Mariposa
I never say ” word on the street”
Maybe u can check your archives and see
Your are more than welcome if need arrives to use my linguistic manner of speech as to when it apply to areas of the goverence need for a defensive approach
Mia measures are those of asking barbadians to stay a harsh course of paying govt debt
Depezia course is harsh because of having to fill a role of one being the first female leader of the DlP and finding herself dead smack in an extraordinary time of rebuilding the party where former members having recoiled or become disenchanted by politics after a defeating blow in the last election
The difference being that she cannot be seen as weak and luvklustre and inattentive
Mottley on the other hand has many years of political experience to build on and from which she can challenge people to stay the course
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Lorenzo
Mariposa are you serious?Equating Ms Depeiza with Ms Mottley?They are both female leaders , but that is where the simularity ends.Ms Depeiza in my view is a political lightweight,who cannot even win a seat far less a government.She was elected as a stop gap leader while the some of the defeated , licked their wounds.The news brought by Artax was in saturday’s Nation and it is no surprise to me.Therefore, soon it will be cat piss and hot pepper in your party and you would not have time to focus on Ms Mottley who by the way is head and shoulders above Ms Depeiza.
Eight illegal guns out of circulation better than zero.
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Fractured BLP
Ok David BU
What about this one ?
On one of the more significant dates on the Christian calendar – Holy Week
The caring Mia Mottley has inflicted the most cruel violence on the pockets of the poor & vulnerable.
Today April 15, 2019 Patsy and her 3 school aged girls – having waited at a bus pole in St. Thomas from 6: 45 a.m for a Transport Board bus to get to town , for an onward journey to Alexandra school – had to fork $ 3.50 each for a minivan ride – moments ago – as no Transport Board bus has been sighted in the area since noon yesterday – Sunday !
How in the name of good governance & public policy could a CARING Mia Mottley hike bus fares – knowing full well that the Transport Board does NOT have the buses to service several routes ?
It will negatively impact commuters. We created the mess, now we have to hold our noses and clean it up.
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Donna
If the PSVs don’t change their minds and offer a special fare for school children I can see us returning to the days when siblings took turns going to school. There is no way a person on minimum wages can send to school four children every day with these fares. There are no buses for the children to catch and therefore no real opportunity to save with those TB discount cards. That is just a ridiculous exercise. The only alternative for these people would be Welfare.
I hope the Ministry of Education is going to analyse the school attendance for this term and investigate. This is examination term.
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WARU, Crazy & Unstable, Hogging the Blog
“The distance between plantation owners and slaves was no greater than between the DLP grandees and the stupid masses who still vote for DLP. I’ll bet that this mob would even enslave locals and sell them to Saudi Arabia to finance their corrupt lifestyle.”
All yall have done the same and and are still hellbent on doing it…ya are some evil black leaders who should be exiled to the Middle East let the Arabs have a go at yall.for couple decades ….it will bring proper perspective to ya useless, thieving lives….goddamn judas sellouts.
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Tron
@Fractured BLP April 15, 2019 7:53 AM
“pockets of the poor & vulnerable.”
You obviously don’t live in Barbados, but belong to the DLP propaganda arm in Canada or elsewhere.
Today I asked a manager from the Massa Super Center why food prices here are 30-50% higher than in comparable markets in other CARICOM member states. He told me these were the high import duties and the peg of the Barbados dollar to the US dollar.
So do not tell us fairy tales. We all know that after one of the many rum nights of drinking with his socialist cronies, the arrogant Barrow, in a touch of madness and exuberance, decided to tie the Barbados dollar 2:1 to the US dollar. That was the greatest idiocy in the history of the island. It is time to have an honest discussion about the arrogant Barrow. Your Barrow is not a national hero, but a second Burnham. Remember it and learn to spell it: Your god Barrow has failed. He created a monster called DLP and a spawn called Chris Sinckler.
As for the high taxes, I remember that the DLP increased VAT and the cost of living rose excessively from 2008 to 2018.
So don’t tell us shit. When you talk about the weak, you only mean the lazy DLP supporters in the civil service who sabotage the new government all day because they want to destroy Barbados. Mia Mottley is far too lenient with these traitors. It’s time for a mass demonstration to drive the corrupt DLP bureaucrats out of office.
Compassion is weakness.
Mercilessness is strength.
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Hal Austin
@ Tron,
You are getting confused, Barrow was no hero; he was an ordinary politician from St Lucy (his family owned the plantation, he was not a field worker).
Our problem is that we have a professional elite, mainly lawyers, who are one, two and at most three generations away from households headed by watchmen, carpenters, cane cutters, domestics, field workers, and who, through their intelligence, government policy and their parents’ foresight, escaped from being anchored to the block. Now they are the enemies of the people. They are class traitors.
The decision to fix the Bajan to the Greenback was made at the founding of the central bank, do you remember the economic circumstances in the mid-1970s and the oil crisis?
That governments, both BLP and DLP, have allowed the peg to continue is bad economics and even worse monetary policy.
That it is still in existence at this time is an economic crime. I say again (BERT are you listening): decouple from the Greenback, fix against a basket of currencies and commodities; use our sovereign currency to clear local Bajan-denominated debt, remove that extra liquidity from the system through good inflationary management; establish a local balance sheet post office bank; pay all 25000 public sector workers through a post office bank current account; make the post office a bancassurance business, funding small and medium enterprises..
There will be no invoice (US$85000 a month?) for this basic lesson in modern monetary theory.
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Dullard
I say again (BERT are you listening): decouple from the Greenback, fix against a basket of currencies and commodities; use our sovereign currency to clear local Bajan-denominated debt, remove that extra liquidity from the system through good inflationary management; establish a local balance sheet post office bank; pay all 25000 public sector workers through a post office bank current account; make the post office a bancassurance business, funding small and medium enterprises…
This will never happen in Bdos. First, makes sense. Second, requires a bit of thinking and initiative to implement.
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peterlawrencethompson
@Tron
“Today I asked a manager from the Massa Super Center why food prices here are 30-50% higher than in comparable markets in other CARICOM member states. He told me these were the high import duties and the peg of the Barbados dollar to the US dollar.”
++++++++++++++++++
The manager from “Massa Super Center” is completely wrong. I have no way of telling whether he is deliberately lying or simply ignorant, but neither of his explanations are true.
The reasons for the higher prices are the higher profits as well as overhead costs at “Massa Super Center”.
It is trivially easy to prove this. Firstly compare Massy to Popular; prices at the latter are about 20% lower, but they pay the same import duties and operate with the same peg. Secondly, compare wage rates in Barbados to those in other CARICOM member states, and calculate what percentage of overhead is wages.
Here I compare the prices for Massy Barbados with Massy Jamaica and Massy Guyana. Let me give you an example: Price 1 litre milk Pinehill Massy Barbados: 3 USD, price Jamaica and Guyana 2.5 USD. The latter markets also offer milk from the EU for 2.0 USD.
If it were true that the higher wages are responsible for the high food prices, the food prices in the USA or in Europe should be higher than in Barbados. But they are not.
But I agree with you that the prices at Massy Barbados may be higher to some extent because the typical customers there are less impoverished locals and more expats and diplomats.
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peterlawrencethompson
@Tron
The difference in milk prices arises from a number of causes… in the EU, USA and Canada they have huge economies of scale in addition to which they subsidize their dairy industries enormously. In fact agricultural subsidies across the board in the EU, US and Canada amount to billions and billions (US$20 billion a year in the US alone). Those subsidies, added to economies of scale, are the root causes of lower food prices in the USA or in Europe.
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Mariposa
Also word on the ground says that buying a bus pass is more thiefing because when the bus doesn’t come on time the alternative is to get the PSV which means govt collects upfront without delivering a service and additionally the PSV collects also
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Hal Austin
@ Tron,
You are right to compare the price of a common good or service across borders. That is good economic theory and tells us a lot, including purchasing power parity. That is what we call the Big Mac Index and is the foundation of the cost of living. Consumers could not care less, if they are paying more for the same good or service.
I remember a few years ago, cement produced in Barbados was more expensive in Barbados than it was down the islands. There is no real excuse for this.
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NorthernObserver
@VC
“I think the current administration underestimated the magnitude of the problem and were caught by surprise”
Whether one agrees with their decisions or not, the current group acted rather quickly. [albeit the foreign debt situation still hangs] I wonder if it was the current administration which underestimated or a group of Barbadians who believed “dat can’t happen here, in dis country”?
No question many of those nations who preach balanced budgets, cannot balance their own. Several, do not make any attempt. It is politically expedient not to, for they are guilty of the same offenses of which they accuse others.
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peterlawrencethompson
@Mariposa
“I never say “word on the street””
also @Mariposa
“Also word on the ground says…”
+++++++++++++++++
Do you really think that anyone cares whether you say street or ground?
Do you live in Barbados? I have not heard anything about Transport Board selling a “bus pass.” You are perhaps thinking of people who purchase the “Travel Smart” (dumb) cards from the Transport Board. These, however, do not expire after a given time period (in so far as I am aware) so that it is misleading for you to assert that it “means govt collects upfront without delivering a service…”
You are using the US price index as a reference point to arrive at your determination?
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Barbados 2019
Consumers could not care less, if they are paying more for the same good or service.
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Hal what BULLSHIT is this?
Does it matter what the local consumer think when they have no choice of the sale prices of the goods in Supermarkets or small shops only LOCAL choice they have is where to shop.
You want them to jump on a plane to St Lucia, Jamaica, Trinidad or Guyana to buy their monthly or weekly groceries?
Stop talking shite because you can.
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peterlawrencethompson
@Hal
“That is good economic theory and tells us a lot, including purchasing power parity.”
+++++++++++++++++++++
This is absolutely correct. It makes no sense for country A to brag that it has a larger GDP than country B if that larger GDP buys fewer goods and services. For example, the UK GDP is behind the Indonesian GDP if purchasing power parity is taken into account 😉
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Hal Austin
@ Barbados 2019
Plse re-read what I said. Or is your fury mental therapy?
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Tron
@ David April 15, 2019 1:05 PM
I cite the real prices in the supermarkets. But it is very remarkable that Barbadian milk is sold 15-20% cheaper in other CARICOM countries than in Barbados. You don’t get milk for 2.0 or 2.5 USD in Popular Discount. I have even seen milk for USD 1.0 in other CARICOM countries, however, it was only a special offer.
If we put this in relation to income, GDP in purchasing power is still higher in Barbados than in Jamaica or Guyana. – But who knows if that won’t change.
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NorthernObserver
@Tron
on recent travels I ended in N.Fla, the closest grocery store was Publix, it was 8pm and they were open. I was shocked at the prices. The same Mexican mangoes in a Toronto upper-end grocer that were 3 for $5, were also 3 for $5, only now it was $US and not $CDN. The Guatemalan pawpaw and Cantelope were even pricier, and lo and behold, Florida oranges and their orange juice were the same dollar price, exchange ignored. Next day, my “app” guided me to a produce store where the prices were 30% less on many produce items, and the selection better.
Now @pacha maybe interested, for Publix is an employee owned operation…https://www.publixstockholder.com/
I learned as I returned on a multi stop return to the Great white north, that Publix is a massive company. I found them in Georgia, Tennessee, and the Carolinas, and drove by large Publix distribution centres. Guess what? Florida grown oranges and orange juice were cheaper in Knoxville than they were in Fla, both national brands and store brand. The same was true for several other produce items, while their sources were identical.
Variations in taxes aside, Publix clearly prices to what it thinks the market will take, and its competition. It’s more about profit than cost.
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Georgie Porgie
RE Stop talking shite because you can.
YOU ARE BEING REDUNDANT SIR
WHAT ELSE CAN ASSTIN TALK?
YOU SHOULD HAVE JUST SAID TO ASSTIN “Stop talking”
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Artax
“Also word on the ground says that buying a bus pass is more thiefing because when the bus doesn’t come on time the alternative is to get the PSV which means govt collects upfront without delivering a service and additionally the PSV collects also.”
How do you know your above comments are true? Or are you being a “mischievous outside interference sticking (your) dirty nose around looking for bad news?”
Let me remind of your comments and “advice” before you respond. After all, you gave me permission.
“Word is like unfiltered water it can travel where it want to and can be stagnated by many different sources.”
“(Mariposa), since you are the bearer of the “Transport Board message” and you know of the source from which it came, my best advice would be for you to ask of them (source) the truth.”
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Baje
@ Shedding Some Light
Learn to ignore some of the idiots who posts regularly on BU.
Not worth your time to engage with real johnnies.
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Vincent Codrington
@ Northern Observer
I can confirm that generally food prices in North America, despite the economies of scale and government subsidies ,are most times higher than local prices. Publix is also my favourite supermarket in Florida. And I am talking about the same brands. Most commentators forget to convert to a common currency when they compare prices.
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Dullard
I can confirm that generally food prices in North America, despite the economies of scale and government subsidies ,are most times higher than local prices
Lies.
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Vincent Codrington
Northern Observer
I agree with your submissions above.
Prices are set so that the producers can make a profit.
It is not unusual to price commodities according to the price the markets can bear. We do it with cement and we do it with milk, beer and juices.
The social benefit to Barbados is maintaining the level of employment at PHD and Arawak cement factory. The multiplier effect of these workers local spending keep other Bajans employed, GoB revenues buoyant and the NIS viable. The economy is a system. All sectors are interconnected.
I am just using you as a sounding board. I know that you know these elementary truths.
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Barbados 2019
I can confirm that generally food prices in North America, despite the economies of scale and government subsidies ,are most times higher than local prices
Its pretty obvious @Vincent Codrington is also one of the biggest bullshitters on BU.
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Mariposa
I am the source of the experience ..neva again
My advice to you is not to buy them
Wish i could get a refund but i know it not gonna happen
Word up
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Vincent Codrington
@ Dullard
Explain to BU householders how you are going to pay for imports and repay US$ denominated debts with a basket of currencies? Can you disclose to BU household the proportionate share of this basket for euros, pound sterling, US dollars, EC$ and TT $ etc. And do not put any lies nor bullshit in the basket,please.
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Mariposa
Question
How will govt be paying for the night security at the polyclinic
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Hal Austin
@ Dullard,
You can pay as you do now: by trading in the currencies exchange markets; or by trading in the derivatives markets. For example, if a firm orders raw materials from another market, they fix prices through derivative trading in order to guarantee a steady supply.
Equally if a firm or country has dollar denominated debt, they know the dates of due payment so they can trade on the futures markets. It is like a mortgage. You know when payment is due, and make the necessary arrangements. It is not rocket science. You do not have to stockpile hundreds of millions in US dollars in order to meet those obligations.
That surplus money (reserves) can be working more beneficially. About the so-called proportionate share of the basket of currencies, that depends on our trading partners and future obligations.
As for householders, if I want US dollars I just go to the post office, produce my passport, and purchase my greenbacks. If a company has overseas obligations, they can trade through a currency exchange or their bank or, in small nations, the central banks..
The big problem in Barbados is fear — fear of the unknown..
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TheOGazerts
I am not an economist, just a bread and butter man.
If a man pays US $2.00 for a bread with butter in both Barbados and the US, but earns $2 in one place and $4 in the other… is the cost of living the same
” An Ontario biology professor and her class found stomach-turning results after they tested the DNA of fish samples from sushi restaurants and grocery stores across the province.”
The reality of significantly inflated prices for public transportation is slowly setting in and is not sitting well with Barbadians, who are demanding a considerably higher standard in public transportation from stakeholders.
The reasonable increase in ticket prices is the decisive test for the new government. The constant moaning shows once again that 90% of all Barbadians in their blindness are not even aware that the island is facing the abyss. The courageous intervention of the Prime Minister alone has so far prevented the worst.
If they can’t even push this through, the IMF program will fail and Barbados like Jamaica and Guyana will end up as a criminal nest for savages.
Austerity means hope.
The welfare state means poverty.
Social dismantling means prosperity for all.
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