Dear Editor,
According to the Government: "Relative to the budget, revenues underperformed mainly due to lower imports and weak economic and labour market conditions." Here are my concerns:
Firstly, the Government should not be depending on taxes and fees from imports in an almost stagnant economy to raise revenue. The more imports into the country, unless it is for production purposes, put unnecessary pressure on the JA dollar, which causes increase in prices and less consumer spending, leading to less government revenue.
A good-for-nothing JA dollar also makes the cost of foreign production inputs more expensive, which can hamper business growth and leads to less revenue from business taxes. The JA dollar has got too much battering, and the last thing to do is have more imports — especially consumer imports — to further its dependency on life support. In fact, the dollar is heading into a coma right now at $107.00.
Secondly the weak economy is to be expected. With so many people out of work (15.4 per cent) it means less consumer spending again and less taxes into the coffers. In a weak economy businesses are either hesitant or unwilling to invest in revenue-producing activities, which in the end will affect overall production (GDP). Less revenue for government means less money to take care of the regular "household" activities, let alone invest in new productive programmes.
I am not sure why there was an expectation to meet revenue targets with this type of economy.
Thirdly, a weak economy means less consumer spending, less business investment and less government spending, why would a person expect a strong labour market?
Businesses are created to make profits. When the conditions are not conducive to such outcome, Mr or Mrs business person will hold on to their money. They won't buy anything, invest anything, or hire anybody, but do just enough to minimise any adverse consequences. Sending people home is at the top of the list, not hiring more.
The Government needs to stop the pussyfooting around and start putting in place productive activities that will increase consumer and business spending, have less imports, more exports, decrease unemployment, increase employment and a stable dollar. I hope that this was part of the IMF deal or else we will need more than "divine intervention" to get us out of this mess.
Patrick L Green
Florida
USA
Can't expect good result from bad economics
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According to the Government: "Relative to the budget, revenues underperformed mainly due to lower imports and weak economic and labour market conditions." Here are my concerns:
Firstly, the Government should not be depending on taxes and fees from imports in an almost stagnant economy to raise revenue. The more imports into the country, unless it is for production purposes, put unnecessary pressure on the JA dollar, which causes increase in prices and less consumer spending, leading to less government revenue.
A good-for-nothing JA dollar also makes the cost of foreign production inputs more expensive, which can hamper business growth and leads to less revenue from business taxes. The JA dollar has got too much battering, and the last thing to do is have more imports — especially consumer imports — to further its dependency on life support. In fact, the dollar is heading into a coma right now at $107.00.
Secondly the weak economy is to be expected. With so many people out of work (15.4 per cent) it means less consumer spending again and less taxes into the coffers. In a weak economy businesses are either hesitant or unwilling to invest in revenue-producing activities, which in the end will affect overall production (GDP). Less revenue for government means less money to take care of the regular "household" activities, let alone invest in new productive programmes.
I am not sure why there was an expectation to meet revenue targets with this type of economy.
Thirdly, a weak economy means less consumer spending, less business investment and less government spending, why would a person expect a strong labour market?
Businesses are created to make profits. When the conditions are not conducive to such outcome, Mr or Mrs business person will hold on to their money. They won't buy anything, invest anything, or hire anybody, but do just enough to minimise any adverse consequences. Sending people home is at the top of the list, not hiring more.
The Government needs to stop the pussyfooting around and start putting in place productive activities that will increase consumer and business spending, have less imports, more exports, decrease unemployment, increase employment and a stable dollar. I hope that this was part of the IMF deal or else we will need more than "divine intervention" to get us out of this mess.
Patrick L Green
Florida
USA
Can't expect good result from bad economics
-->