THE EDITOR, Sir:
THE RECENT budget has once again highlighted the extraordinary amount of our financial resources that goes toward debt servicing. None of the interested parties, including the Opposition, has explained the impact this burden has had and continues to have on the country. Maintaining such a large deficit has caused private firms to invest less capital in productive plant and equipment -- factories and machinery -- than they otherwise would.
Over the years investing less means that workers have fewer tools to do their jobs, and they have therefore become less productive than they otherwise would be. In other words, productivity has grown less rapidly, the economy will grow less rapidly and has, real wages has grown less rapidly, and the standard of living will grow less rapidly and has. That's a large part of why a deficit of this magnitude, is bad for the economy and the country.
The second problem is subtler; history shows that over long periods of time, influence and respect in world affairs accrues to countries that are creditors -- in other words, countries that are lending their capital elsewhere -- and not to countries that are borrowers.
Is there any doubt that Jamaica has been experiencing all of the above? And it's more than likely directly related to the increase in crime and social malaise. The Government has to take the steps necessary to bring debt levels down.
I am, etc.,
M. STEWART
mstew1898@netzero.com
Ft. Lauderdale, Florida
Via Go-Jamaica
