Press Fails to Demystify Economic Issues

With the issues of Jamaica's economy and fiscal management - or lack of - dependent on your political view, reaching a new level of discourse as the political factions and schools of economics whip out technical jargon and flash their superior number crunching abilities concerning all things budget, debt, revenue, exchange rate, GDP(gross domestic product), capital market, multinationals and overall policy. There is a forgotten majority that continues to  be removed from the discussion either from ignorance or apathy in a process that doesn't appreciate their layman opinions.

With an election imminent there is renewed energy and competition in the politics as parties and candidates try to one-up the other on economic issues that remain high on the Jamaican agenda, many not 'qualified' to lead the conversation but while in campaign mode they won't necessarily stick to facts further misleading those removed from the discourse. 

And to straighten out the facts and give solid opinions we turn to the academics and practitioners who are given open mics in the press and mainstream news media. But too often the facts are numbers, that become complicated calculations, that get tossed around loosely as simple mathematics in nation that is trying to curb a cultural 'hard hardheadedness' to math. The academic circle also sees its fair share of politics as different schools of economic thought collide for supremacy and personalities aim top their counterparts.


Who is actually aiming to demystify the issues?

Connect The Dollars

For the layperson, the economy is what he or she experiences including (un)employment, income, food prices, gas prices, utility bills, mortgage/rent  and all the other direct factors that will affect a person's quality of life. 

With politicians too busy trying to tilt the situation either way and the academics unable to convey simpler messages. We are then expecting our middle men in public discourse - the free press- that connects us the citizenry to the issues and vice versa to breakdown the arguments, facts and implications and deliver a material that allows everyone who wants to understand to connect the dollars back to their own lives and pockets.

If the news outlets and talk shows continue to regurgitate the discussions being had at the highest levels of leadership in the same language and understanding, a large percentage of Jamaicans will never become interested or if they are interested will never comprehend the true dollars and sense of the economy.

We don't just need a new politics but a new voter who understands the issues or a voter who craves understanding as to make the best decision at the ballots.

TPPandTheCaribbean: Trans-Pacific Partnership Facts and How the Caribbean will be affected

Mainstream Messed Up

Before I do delve into 'the need to knows', I must call out any mainstream media that either under-reported this issue or ignored it, but I am especially disappointing in the Jamaican mainstream media as they have left the Jamaican masses especially the disfranchised  members of the society who have no other resources other than the mainstream media be it print or electronic to enlighten them about local and global affairs.

There is no for the media not follow and report on such a established topics such as the Trans-Pacific Partnership (TPP) and the other less popular United States(US)-EU(European Union) Transatlantic Trade and Investment Partnership(TTIP). Even as Pres. Obama maneuvers his Trade Bill  through the US House of Representative and Senate that would see the implementation of the TPP in the US within a period of 6 years, along with other negotiation nations from the Americas include: Mexico, Canada, Peru and Chile. 

TPP Members 

TPP Facts

What is the Trans-Pacific Partnership 

The TPP or TPP12 is an a game changing  Free Trade Agreement that was originally signed by Brunei Darussalam, Chile, New Zealand and Singapore under its former name "Trans-Pacific Strategic Economic Partnership" and came into effect in 2006 with a vision of comprehensive trade liberalization being implemented by 2015, but between 2010-2013 the other 8 nations( including Japan, Australia, Malaysia,Vietnam) had joined led by the USA, of course making it 12 nations in total. 

TPP Objectives

The TPP stated objective is  to achieve extensive liberalization of both goods and services, and entails comprehensive coverage of trade in services, investment, government procurement, non-tariff measures, and many other regulatory areas 

including Intellectual Property.

Size and Power  

This Partnership is looked upon as another geopolitical power struggle between the US and China's emerging influence in the Americas and Asia-Pacific hence we must asses its economic size and power to really gain an appreciation of its impact on global trade, but also consider the possibilities of more Asian-Pacific nations joining the TPP.

Although the United State is almost twice the size in population and economy of the other members: Trade among TPP partners amounted to more than $2 trillion in 2012, which can be compared to World Trade Organization (WTO) global trade valued $18.3trillion for that period, TPP trading would equal 11% of all trade.

TPP nations are a 40% share of all United States world trade with the North American Free Trade(Canada,Mexico,USA) and Japan the majority of that trade.

In terms of populations according to the Population Reference Bureau (PRB) 2014 World Population Data Sheet, .the total American TPP members which stands at 555 million, more than half the total population of the Americas (971 million), is significantly larger than the Asian population figures which amount to no more than 256.6 million (285 if you add Australia and New Zealand), compared to Asia’s total population of 4.3 billion: almost half of the Asian contingent is accounted for by one member, Japan: Converted to percentage of worlds population would be 12%.

Criticism and Concerns 

Opponents of the Trans-Pacific Partnership says its a secretive, multinational trade agreement that threatens to extend restrictive intellectual property (IP) laws across the globe and rewrite international rules on its enforcement. 

The fear the deal may extend the scope of patents in sectors such a medicine and prevent the distribution of generic drugs.

With the certain deregulation of the Private Sector seen also as negative by pro consumer advocated; there will easier flow of companies and their revenue, leading to possible loss of  employment and outsourcing of local jobs.

Continued currency manipulation by some members;currency manipulation is characterized by persistent current account surpluses, and accumulation of massive quantities of foreign currency reserves.

And with the rigidity of trade and harmonization regulation to ensure equality being proposed, opponents say that smaller economies will have less room to grow and develop.

How TPP will Affect The Caribbean

The  magnitude of the affect that the Trans-Pacific Partnership is still hard to predict as nations still negotiate and hence we await the final agreement, if they are successful in reaching there:

The European Center for International Political Economy(ECIPE) report: "Mega-Regional Trade Agreements: IMPLICATIONS FOR THE AFRICAN, CARIBBEAN, AND PACIFIC COUNTRIES" has provided some insight into how these two Free Trade Agreements would affect the African, Caribbean and Pacific(ACP) countries and provided some recommendations going forward:

read full document here:http://www.ecipe.org/app/uploads/2014/12/OCC22014_.pdf (05/16/15)

For the Caribbean specifically, ECIPE said that the TPP may have a significant impact on trade, with the USA accounting for close to 35% of the Caribbean’s exports while the EU and the rest of the TPP account for 11% and 8% respectively. 

Also that there are a number channels through which mega-regional agreements such as the TPP can impact on ACP countries. The first is the direct effect that mega-regional agreements can have on existing ACP access to EU and USA markets on preferential terms not available to middle and high-income countries. The second channel is the impact that the reduction of non-tariff measures and the harmonization of standards within the TPP can have on either raising or reducing export costs for ACP countries. 

What Must We Do

Some ECIPE recommendations for ACP countries include:

ACP countries continuing to push for increased and more targeted aid for trade, development and should also bolster their domestic systems for receiving and utilizing this assistance these tools should be used to cater for the country’s domestic institutional, political economy, and governance constraints.

Conducting national assessments of how we are positioned in the mega regionals “game”- domestic reform imperatives could best be pursued so that the country is not left too far behind.

Strengthening and widening regional economic integration:  enlarging the regional economic space will provide some attraction to outside investors, particularly if the transactions costs of accessing regional markets can be made less burdensome or, even better, attractive.

Without "high-level" government and policy intervention Caricom and its Caricom Single Market and Economy (CSME) will be on the receiving end of whatever trade deals, regulatory  changes, environmental and intellectual property rights agreements result from this new arrangement with no way out. 

Next Time we analyze the Transatlantic Trade and Investment Partnership(TTIP).

The Sunday SoundOFF: LEFT-Hand Drivers, Need to Look RIGHT

LEFT-Hand Drivers, Need to Look RIGHT:

The Peoples National Party and their Expected Economic Crash and Burn   

Sounding-OFF:from the common-agreeable fact in the Jamaican Politico-sphere is that The Peoples National Party (PNP) historically has a tendency to be “lightheaded” on the matters of Fiscal importance and financial aptitude with the glaring backdrop of the past PNP administrations over the 2 decades, failure to launch the Jamaican economy into the further regions of the Global Economy, joining the developed Nations (U.S., Canada, U.K. etc.).

The Former ardent Socialist Party, under the leadership of Michael Manley went through a phase of Ideology crisis, falling victim to the “Red Rush” of the 70’s – 80’s communism movement that Cuba holds on to. The Party was elected on the slogan of "Giving power to the people" and its base soon became the absolute poor and working class - which was almost every Jamaican at the time, with the economic climate the way it was Manley’s Government was the main source of support for the population and instituted countless social and labour reforms such as Maternity Leave, Free Education at all levels and National Housing Trust, but was heavy burden of the Government.

We are at the tail end of a “Great Recession” can we expect our current “Team PNP” to hit the brakes before we hit the wall, turn the wheel in the RIGHT direction and put the pedal to the metal heading straight towards Economic Independence.

The signs are being written on the walls of Gordon House – already, Finance and Planning Minister Dr Peter Phillips admitted on November 20, that an agreement with the International Monetary Fund (IMF) might not be possible before January. After such tenuous reassurance for almost a year that we would not end the year without the crucial fiscal tool and prop up (as it were) for our nation’s development.



Hit the Brakes or the Wall

With the December 29, landslide victory and earning a mandate; it was a chance to redeem their ‘poor’ to moderate economic performance in the Manley era, through the Patterson generation (and gain back there learners license), riding high on a “Range Rover” of outrage at the former administration’s handling of a fatal extradition request by U.S. officials and a catching the “Bus” of “Populism” by encouraging “People Power” that ran over the futile attempt of the Jamaica Labour Party (JLP) to “drive home” a message of “fiscal responsibility” by using the doomed phrase: “bitter medicine”.

With the poor in hand and the rest of the population somewhat solidly behind her PM Simpson-Miller, re-entered Jamaica house with the “600lb Tanks” in the middle of the room, awaiting to be addressed from Tax reform, Public Sector Reform to Pension Reform and the age-old issues of Crime and Infrastructure (Roads), all that after promising in the National Debate’s that IMF talks and a deal would have been immediately undertaken and signed, respectively. 

We have seen countless action towards other issues but stationary on said reforms, Jamaicans should be alarmed or even discourage as the urgent reforms are necessary for us to save the sanctity of the economy and not mirror a Greece style fall into default needing a “rescue” plan requiring Austerity.

The Somewhat RIGHT Direction

As much as leftist political backers of the PNP are invested in their party and trust in the leaders and action of said leaders, there is eerie feeling that the Government has taken a wrong turn at “Half-Way-Tree”, instead of remain on main road with a balance approach of “Fixing People’s Lives to Better the Economy” (visa-verse of the JLP’s stance), they have headed “Downtown” with their economic strategy, “Fixing People’s Lives” without any near future intentions to “Better The Economy”.

We have seen the Jamaica Emergency Employment Programme (JEEP, how fitting) notably described as a hand out system, wrapped as a Stimulus package and delivered empty. 

While a patched tyre is better than none, eventually a new one is needed - this must come in the form of a “Somewhat Right/Conservative” handling of the economic wheel with our nose pointed squarely on the empowerment of the Small and Medium sized businesses to grow and employ, creating a smooth, ‘green tape’ process for investors especially Jamaican and challenge the public sector to cut waste.

This must be linked with what the Peoples National Party is actually good at doing, messaging to the less fortunate and motivating them into action, use the “Will of the People” forget the “Political Will” (politicians can’t create wealth, for all), whip the people in a Nationalistic frenzy over the possibility of change, encourage the people to be their own “vehicle of movement” yet being the “Wheel of Opportunity”.

Highway to Economic Independence

Whether or Not, we get the IMF deal – be them crucial- we shouldn't be bogged down in the economic or political despair of the moment as we see that there is hope in the business community and among consumers as recent study shows.  This Government has the ability and trust of the people to bring the “Obama ‘08” sequel to Jamaican shores and ride the “Highway to Economic Independence”:  

Once we loosen the grip that Central Government has on the system and truly aim to decentralize government and divest political power, giving more responsibilities to the Parish Councils and Local Authorities as to make them more autonomous, accountable and efficient.
Once Tourism is a part of a balanced and diverse economic structure; not a sacred slice of Ham.

• Once the Politicians dump the need to be recognized as celebrities or ‘Big Men and Women’ by flashing their gold teeth.

• Once we commit to the prosperity of Jamaica and all those who inhabit it, no matter of race, gender or sexuality. 

• Once the Jamaican Constitution reflects a modern democratic nation at 50 and stepping into its own, independent from Head to Toe.

Then and only then, can a Peoples National Party or any other Government formed after be upgraded from a “Learning Driver” to a “Road Scholar” worthy of chauffeuring the “Limousine” that is the true Jamaican Economy, hidden under  this “VW BUG”.

Until Then, I say to the Jamaican Public always “Look both ways before crossing the road” and to the PNP “Learners” remember: LEFT-Hand Drivers, Need to Look RIGHT!!!

Otherwise, there is an imminent feeling in the crowded VW BUG that the  ‘Crash and Burn’ may be early next year, January – maybe.

Editor's Note: Net International Reserves

Net International Reserves  

*Editor's Note: 

*This is a worrying trend for the Jamaican Economy, beyond the fact that we depend on Foreign Exchange, more than we do on oxygen to live. The Government may want to implement a Commission - like every other problem, they wish to ignore long term - this requires the best minds and the most experienced minds among the Population and We  furiously hope that the Hon. Edward Seaga would be a prominent figure in any body set up to deal with the Economy. *

*Data courtesy of the Bank of Jamaica (BOJ)

The Image shows the country's Net International Reserves (NIR) from February 2010 to October 2012.  The NIR is representative of the nation's "savings account" in international currency.  Click on the Image to enlarge it.

The Motion Chart illustrates the data over the period, January 2011 to October 2012.  Click on the circle you would like to track before the animation begins in order to follow the illustration as it flows.

Source link: Below NIR Chart

Link: 

http://www.digjamaica.com/data/view/net_international_reserves

The Top Mid-Week Talkers: The Mitts and Fables that were Told

The Mitts and Fables That Were Told

How Mitt Romney, Possibly Lied his way to The Presidency?

The Mitt Willard Romney we all have come to dislike and discount as a president was unmistakably not present at the first U.S. Presidential Debate for 2012 and the Barack Obama that mesmerized the entire worn in 08 and worked to reverse the mistake of the Bush era policies that caused a Global crisis was seemingly on a Presidential stay from the Debate at hand.  

From the off set Mitt Romney knew that he had to be on the offensive position and but President Obama on his heels with unmeasured attacks on his economic record and play with the liability factor that a sitting President must face. The issues of debate were centered around the Economy, the single most important issue in this election and the issue that Romney hoped would carry him directly to the White House but unfortunately for him the battle is an uphill one and the Presidents policies aren't seen as unpopular as he thought.

The President tried sticking to Romney the unlikable Facts of his running platform, most questionably his stance on Taxes, Romney has ran quite strongly on his plan that would lower the tax bracket to 20%  rate that would give the US a 5 trillion dollar deficit according to the non-partison - Tax Policy Center - but in the debate he said "I don’t have a $5 trillion tax cut. … I’m not looking for a $5 trillion tax cut. … Let me repeat what I said. I’m not in favor of a $5 trillion tax cut. That’s not my plan.”

For more Debunking, Check: http://www.alternet.org/news-amp-politics/10-most-shameless-romney-debate-lies-debunked

Secondly, Mitt Romney as Governor of  Massachusetts crafted a successful bill that has over 90% of the children in his insured, which is the Grandfather Obama's Affordable Care Act. Romney has repeated nauseously that he would "Repeal Obamacare" and has now added "and Replace It" with something much more similar to a private free for all, once again the "Master of Flip" didn't just repeat his conservative talking point but he lubriciously and quite hilariously, to the horror of Republicans replaced Obamacare with - wait for it- Obamacare or Romneycare - "there are good parts of Obamacare and I wont change the fundamentals of the bill"

Romney has Place himself between a Lie and a Lie, We hope that the Chattering class will point out the errors and forced truths that Gov. Romney has pushed without remorse and indignation and correct for the population to digest. Obama didn't totally lose the debate as he got Romney to Flip on camera and I'm sure there will be an assault from the Obama camp using these Flipping Moments to break the Romney advance.

This will be the moment when we look back and not just say "This is where Obama lost the election" but when Americans decided to elect a blatant liar for a President, a man without a Backbone and Malleable stature that will drag the U.S.A back to the days of Iraq Invasion, Wall St Apocalypse and Healthcare crisis.

The Sunday Scrub: What's the 411 on 119?

 What’s the 411 on 119? 

:Improving Emergency Call Centers  

The Portmore police came under stern criticism from concerned citizens in the area, after reportedly responding to an emergency involving a woman allegedly beaten and raped in Kingston, then mysteriously ended passed out in a shopping complex and in the nieghbouring parish of St.Cathrine (the initials reports were unclear of the lady’s state of mind), 6 hours after the original calls to the emergency call center were made.

The Head of the local Portmore division was recorded saying “The Jamaican people need to find out their local police station number and stop calling 119, because the Control Center is flooded with calls, prank and otherwise, please learn your local station numbers”.

The statement maybe factual and well intended, in prompting us the public to take CORRECT actions to know the quickest ways to get help when needed and make the adjustments to secure our lives and properties. 

Improving the System

The question still remains, How many persons will instinctually call their direct local Police Station phone number (7 digits) when need arise instead of 119 (3 digits)? We have thought our children from toddler age that the number they need to know and call for any emergency is 119 (before mom and dad’s number).

Earlier this year, we heard that the number of prank and calls not relating to an Emergency  for 2011 were 6.7 million, its clear that the system need a boost for us to avoid these challenges.

There seems to be a push for Jamaica to gain employment and capital from outsourcing Call Centers, with the Government pushing for foreign and local investors to take to task the building and outfitting of said Centers. Using the focus on Call Centers as a drive to put Police and other Control Centers in each parish and linking the standard 119  to its coordinating Parish Control Centers. We must seek to improve the technology that are used in our control centers, just as we are developing the Information Communication and Technology sector. (ICT) 

The Sunday Scrub: Running with Ryan

Running with Ryan: Paul “Granny Killer” Ryan on the Romney Ticket   

All off Board, the train has already left for the RIGHT….

The ‘Neo-Con Right’ is seemingly more excited about Romney’s new extremely -RIGHT- hand man than Romney himself, the “veep stakes” came to burning halt as Romney revealed his ‘Younger, energetic, Inspired, more conservative, and we could go on” Vice President running mate for the November 2012 election against the Democrat incumbents: Pres. Obama and VP. Biden.  This election will most certainly be framed around Ryan’s “Social Security Killing” contrasting ideology with Obama’s so-called ‘diluted socialism’ because of the outstanding fact that Romney isn’t known for sticking to anyone ideological standard or anything for that matter (except money).

The Paul Ryan Plan has earned the ire of the Left minded (Progressives and Liberal alike) especially those under the age of 55 who will lose the benefits of Social Security as he intends to starve Medicaid and Medicare of funding as a one stop way of cutting the budget. The name “Granny Killer” came about from a political Ad from a Progressive Organization showing Ryan pushing an elderly lady in a wheelchair of a cliff to interpret what his Budget Plan meant for the those hoping for a secure retirement.

Romney, Trump, Adolf (an Newt backer)  and their ‘Billionaire Buddies’ will be rolling in capital gains no thought of starving grandma. The Paul Ryan Plan will reduce the tax rate on Capital Gains to virtually 0% for those living off the most anti-capitalist earnings (capitalist should earn their money, RIGHT?), this type of trickle-down economics devoured the surplus LEFT by Bill Clinton (W. Bush looking at you) without a doubt we should have expected this choice coming from Romney who rehired the Bush era economic team (hello, captain oblivious) on his election ticket following the worst economic disaster since the Great Depression and yet in the midst of its recovery (been undertaken by Obama) he has the audacity to keep them around.

The Romney team has chosen controversy and radicalism with Ryan over sensibility and stability with my personal fad John Huntsman (for the moderates, out there) the decision was laden with the scent of a diversion strategy; for the next few weeks and beyond the absent years of Romney’s Tax Filings will be off the tongues of the Liberal Media, the “Lame Stream” Media or the cunning FOX that will repeatedly call any attempt to have a rational discourse about the Republican nominee’s unfiled taxes a “distraction” from the issues; unfortunately for them the issues concerning the public deals with closing the loopholes and ending corruption (lest we forget, Occupy Wall St.).

The LEFT will be caught up in the Ryan Effect, moaning over his excessive RIGHTWING policies and the superb contrast from Mitt Willard Romney in every respect of the word. This though - be it a saving grace for Romney’s Taxes or the lack there of – will inversely by his doing turn this election as a contest between Barrack Obama, Mitt Romney and Paul ‘Granny Killer’ Ryan – a three way contest with Romney certainly bringing up the Flip-Flopping rear (for an abundance of  better words). The Republican voters will be 20% out to replace Obama, 30% out for Romney and 50% Ryan.

That doesn’t mean the Romney-Ryan Ticket is one to dismiss - by all means – the momentum will be on the side of the Republicans going into the following months, capturing the Ryan Energy is the aim of the RNC (Republican National Committee) then catapulting Republicans to a high especially within the Tea Party and college republicans (the few) quarters until the attacks begin to bore holes in their fabled “Titanic”.

My suggestion for Jamaican-Americans (Jamericans) who are deciding on whether to vote for Obama or stay home (because of his Gay Marriage stance), is to not vote for Obama because of his stance on a Anti-Jamaican issue but vote for Obama because he actually has a stance on record and was brave enough to publically take it, which is vastly unlike his ‘Nominated’ opponent yet to formally take an official stance –well except for- his bullying Prep schooldays.   

Facts: Five Things about Ryan You should Know

P.S

Politically Speaking

This Election may have the lowest turnout due to repeated unwavering (confessed) attempts by the republicans in districts to restrict voter turnout by the traditional democrat voters. They claim to be protecting the ballot from voter fraud by implementing regulations requiring voters to have photo I.D.’s that aren’t free and unnecessary for some citizens especially the elderly. This election will be crucial not only for the contrasting ideologies and economic plans but if the world will take 5 steps back regarding racial divide and how the regulations forcedly applied affect the constituency and voting groups across the nation that claims true freedom and equality for all United States of America. 

Higher Education doesn’t mean Expensive Education

“The Educated differ from the uneducated as much as the living from the dead” this quote is attributed to Aristotle.

The world of the 21th Century is one that many Experts in a wide range of areas across society believes to be the world of competitiveness like no other time in human history; competition between countries, races, religious and Political Ideology, classes, Financial Markets (evident more so on Wall St.) and almost everything that Humanity separates itself by, but Social Darwinism (survival of the fittest theory) or in this case (survival of the richest)  should have no place in the Education of Children from Early Childhood – Secondary or for those seeking ‘Higher Education’ at a Tertiary Institution be it Private or Public, in saying so I must give my support to any student union that stands up against the “No money, No Exam” Rule because once who have been gained entry through qualification and partial payment of fees then your free to sit your Exams. I must thank the University of the West Indies Student Guild for raising the issue once again earlier this week.

There is a preconceived notion in the world that to be properly educated and employable, one must have attended a private university that cost almost a life fortune just to live on campus much less the actual school fee. This classist Idea that a Public Community College or Vocational school is only for the “wat lef” in society, this is the reason why our institutions are underutilized, cast aside and neglected by both society and government, who seem to favor the private institution over the Publicly funded ones, which should make us cry shame and bloody murder at such actions like giving public grants to Private institutions to build sporting facilities and Labs. In a society where every penny counts, the grants would be better suited fixing the Community Colleges and paying the public teaching force to change public perceptions of what ‘Higher Education’ is. 

If the uneducated are as the same as the dead as stated by Aristotle then Jamaica is a land of mindless  walking zombies that have absolutely no purpose in life and if so how can consecutive Governments both JLP, PNP , Capitalist and Socialist really neglect Education by slashing and burning the sector in every budget just to balance the books. In this year’s budget I sincerely hope that education is spared and our society can be begin its resurrection from the jaws of death.

Budget Blues: Incorrect Spending and Ridiculous Spending Cuts

The Budget is a bore, most of the times if not all of the times. We sit and pretend to listen to reports on the complicated numbers and division of  those numbers among Ministries, hearing words such as Expenditure, Spending, Cuts, Capital A and B, Supplementary, etc. We have gotten to the point where not even the ‘Budget Debate’ is Important us as a society, although the decisions made by our leaders will affect each and every one of us in some way or other.

Is it that we trust our leaders to make these ‘Critical’ choices without our voices heard? On the contrary we could not be less concerned about what the Government does with our money; if we have to tighten our belts on our family’s budget so should the Government on the Country’s Budget, right?

But should you be afraid, Very afraid of this fiscal year Budget?

If you’re a Progressive anywhere in the world and your country is experiencing a economical down turn your mind automatically switches to Infrastructure and Short Term Development Project to revive the spending capabilities of your citizens but if you’re a hard-line conservative you will follow the crowd and shout ‘Spending Cuts’ and ‘Tax Breaks for Top Earners’ from mountain tops to skyscrapers accepting no other positions but your own, while holding the middle class and poor hostage as if you’re a suicide bomber, like the Tea Party in the ‘Debt Ceiling Battle’ in Washington D.C. USA, earlier this year. Jamaica has a hard-line conservative political party called, The Jamaica Labour Party.

Now here is the ‘Be very afraid part’, the Hon. Audley Shaw, Minister of Finance; star of the JLP economics, has taken a if I dare say it ‘Hill and Gully ride’ approach to this budget; increasing spending and mercilessly cut expenditure on across the board in his supplementary budget present on August 30, 2011. Obviously the Hill represents the spending hikes, while the Gully; cuts. If you don’t enjoy ‘Hill and Gully rides’, this should scare you, Minister Shaw budget includes: A $2.1-billion net increase, a $4.4 billion increase in spending on the recurrent side, a $2.4 billion cut in capital expenditure. But what does it all mean?

It means, those affected including Ministry of Energy and Mining, which lost $860 million allocated to the Petrojam refinery update and $50 million of the $450 million which had been allocated to the Rural Electrification Project. The Ministry of Education that lost $800 million from its capital budget, practically stalling construction of two high schools and one primary school, a School of Hospitality and Tourism Management and joint National Youth Service/Youth Information Centre offices.

So, Conservatism meet Conservatism; the budget is essential built around paying the public workers, whom deserve to get paid, but at the same destroying projects that would employ workers and improve our infrastructure and Education system. Spending cuts are necessary but spending by the Government in a developmental manner is essential as well in the functioning of a stable economy. If you’re afraid of this conservative dial tone of a budget, take comfort in China, Ha?

Question to the People: Will this Budget be able to get us out of the slump, with so much Cuts and incorrect spending?’

http://jamaica-gleaner.com/gleaner/20110831/lead/lead1.html

http://www.jamaicaobserver.com/news/2-1b-more_9571950#ixzz1Wgr3D1yY