Caribbean economies seem to be big trouble

dedetriniking

Registered User
This sucks for Bim! But I think the govt. are dead wrong and should never have given in to the IMF's pressure. How can you expect to pull yourself out of a bad fiscal situation by letting to 3,000 taxpayers??? It is madness.

Bim should instead have concentrating on growing its economy (and the world conditions are again good for doing this) and told the IMF to go suck on a lemon.

Too many governments in our region are ready and willing to listen to some dumb foreign agency, rather than just applying common sense to national experience. Huge job cuts have never done anything other than deepen recessions.

Anyway, either way Barbados will be back. They will never devalue their dollar and, so long as they remain fanatical on that point things will never sink beneath a certain level.
It is those same choices that the US has been facing for all of Obama's tenure. In a crisis do you cut spending and lay off people or do you concentrate on finding a way to grow the pie bigger. The struggle between the both sides continues to today.

I really feel for those people in the news report from Barbados....some of them are the only bread winners in the family.
 

robblaten

New member
It is those same choices that the US has been facing for all of Obama's tenure. In a crisis do you cut spending and lay off people or do you concentrate on finding a way to grow the pie bigger. The struggle between the both sides continues to today.

I really feel for those people in the news report from Barbados....some of them are the only bread winners in the family.
But there is some good news for Barbados. Sandals has bought two derelict properties and is going to employ 1,500 people when they open.
 

Noddy

Registered User
This sucks for Bim! But I think the govt. are dead wrong and should never have given in to the IMF's pressure. How can you expect to pull yourself out of a bad fiscal situation by letting to 3,000 taxpayers??? It is madness.
The government is also responsible for paying those people and the cost of their salaries would be much higher than the taxes recouped from income tax and NIS contributions. Also, the government has more people than they really ever needed on payroll. They needed to scale back for a long time but the easiest way to buy some votes is to give someone a little spot to occupy and collect a pay cheque.
 

robblaten

New member
The government is also responsible for paying those people and the cost of their salaries would be much higher than the taxes recouped from income tax and NIS contributions. Also, the government has more people than they really ever needed on payroll. They needed to scale back for a long time but the easiest way to buy some votes is to give someone a little spot to occupy and collect a pay cheque.
but the best way to cut back is by attrition, not mass layoffs. Gradual layoffs should be the answer, coupled with measures to enhance growth and boost FDI.
 

Noddy

Registered User
I would agree with you but the time for attrition has long since past. Gradual layoffs means that you still have to pay people who may not actually be contributing towards bringing in additional income or saving costs.
I definitely agree that new growth needs to be stimulated but this is government. Governments are notoriously slow to implement and they change course at a snail's pace. Private entities and individuals are going to be the ones to turn around a recession. Government's role is to make sure the measures are in place that they can do that.
 
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