EDITOR, The Tribune,
Both parties have it wrong in their apparent consensus that the way to deal with internationally driven inflation is to engage in belt-tightening at home.
The Prime Minister cautions consumers to spend less and thereby presumably save money (which they have never been able to do before, thanks to this country’s regressive wage and tax policies).
Meanwhile, the opposition predictably takes the view that government itself should be belt-tightening – the default position of a party that champions an economic model where the poor pay for the rich both in high consumption taxes and low social investment.
But on this they are both wrong. The inflation that we are seeing around us does not originate from any condition endemic to The Bahamas and it will not be tamed by any domestic sacrifice, public or private.
Where it harms us is in eroding the spending power of the consumer, which lowers both the standard of living and the prospects for further growth.
The only way to combat it is to boost aggregate demand in the public sector by keeping up spending and in the private realm by pushing more wealth toward the bottom of the income pyramid and into the hands of workers, whose spending drives the economy.
In other words, significantly increase the minimum wage, boost government spending and pay for it by increasing and shifting the tax burden away from consumption and onto wealth and income.
Anything other than this is either political rhetoric or plain fantasy.
ANDREW ALLEN
Nassau,
September 1,2022
Comments
Porcupine 1 year, 7 months ago
Mr. Allen,
You are exactly right. What happened that people can be elected to office without even the basic understanding of economics? Clearly, our educational deficit exists not just at the bottom rungs of our social strata. It appears that even up to the office of the Prime Minister there has been no call or evidence that a superior, or even adequate education is required in this country, for any position. Let alone the basic Christian tenets of compassion, fairness and humility. Next question. Where does a country go without thinking, moral, people at the top? Are we witnessing it now? I believe we are.
Proguing 1 year, 7 months ago
Our PM is still much better than Biden...
themessenger 1 year, 7 months ago
Mr. Allen must be an advocate for the numbers house Barons as the majority of the wealth pushed to the bottom of the income pyramid inevitably winds up in their coffers.
Porcupine 1 year, 7 months ago
Excellent reasoning. For a 6 year old.
Proguing 1 year, 7 months ago
Yep, it would take the elevator back up right away...at bit like with a vacuum cleaner
themessenger 1 year, 7 months ago
The truth nonetheless. Out of the mouths of babes and suckling’s, even a six year old can recognize that.
sheeprunner12 1 year, 7 months ago
Mr Allen is right ...... We need a national lottery that can assist healthcare, sports & education.
But Perry took care of his webshop cronies and the FNM had no balls to reverse this social burden.
Will these present sell-out politicians do it?????? Doubt it
Proguing 1 year, 7 months ago
Mr. Allen, how is your Socialist European model looking like these days? I hear people have to choose between food or heating...
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