THE EDITOR, Sir:I HEARD the Right Honourable P.J. Patterson, Prime Minister of Jamaica on the Breakfast Club on Wednesday January 7 presenting a brilliant piece of advocacy for maintaining the Government's economic policy to avoid inflationary spiral and rapid decline in the value of the Jamaican currency. What I have not heard are measured and practical steps to bring into some balance gross domestic product (GDP) and national debt. He has pointed to some positive indicators and there are some at face value, but we are dealing with figures and he has advanced his case with none.
Take tourism, for example, visitors' arrival is obviously on the increase, but what is the net earnings when we factor fixed and variable costs into the mix and the depreciation of the Jamaican dollar as part of costs. Some extra useful dollars will come in from this industry but it cannot be considered earnings until the auditor tells us that we have made a profit.
I deal always with the bottom line and the bottom line is that Jamaica is experiencing serious economic problems not only in relation to its indebtedness which is the result of the following structural problems:
High interest rates
Spending more than it is capable of earning resulting in an illusory budget
Over-taxation when simple taxation is known to be a disincentive to production
Stifling entrepreneurism which must be a bedrock for economic growth and development. The Minister of Finance boasts that financial institutions have now been contracted to a few large institutions ignoring the fact that the heavier you are the bigger you fall. BCCI and Enron are only two more modern examples because even the wildest savage knows this and a law of physics speaks eloquently to this.
Counter-productive socialist legislations which the private sector (the real productive sector) has been begging to repeal. The legislation born out of the brand of socialism Michael Manley and the Soviet Union abandoned for a new brand of socialism, that is, a democratic socialism out of the magic of new capitalism engraved in progressive social programmes.
On the positive side, Highway 2000 will transform the economic landscape for the future, the Government's policy of increased housing and land for the landless are some of the other bedrocks which will improve economic conditions and are maintaining some semblance of social stability; but while the grass is growing the horse is starving and Government must cut its coat to fit its cloth and GOVERN (meaning lead from the front and do not let trade unions or anyone else lead).
I am, etc.,
OWEN S. CROSBIE
oss@cwjamaica.com
