Rick Lowe
Not to beat up on Mr. Jarrett and the PLP, but he did say they were "responsible borrowers".
As pointed out in this recent post, the PLP ran very high deficits each year during 2002 – 2007 (the years of the last PLP government) – an average of more than $134 million each year during a period the PLP has claimed to cause great economic growth. (GDP grew from $5.9 billion in 2002 to $6.8 billion in 2006)
Of course the FNM governments over the years have been equally as culpable but that's a discussion for another day.
But let's look at the "responsible borrowing for a moment in the attached chart:
About a billion dollars in five years doesn't look too responsible in a period of substantial economic growth to me.
Seems that in the years of plenty the government should be reducing the debt for when the country faces dire economic circumstances as we do today, no?
Can't wait to hear what Mr. Laing's (current Minister of State for Finance) explanation for all the debt the FNM have added to the country's burden over their years as the government.
As we know, debt levels are now in excess of $3.9 billion and growing.
This is misleading at best!! It would be best to find out what the National Debt was at the end of April 2002 and what it was at the end of April 2007! And don’t forget to add the $125 million the PLP had to borrow before they could do anything to cover FNM government debt shortly after they took office back in May 2002!! You would find that the PLP added just around $700 million during their five years in office whereas the FNM has already borrowed more than $800 million in less than 3 years in office!!!
Don’t mislead the public with tainted figures….
Thanks Objective Thought.
It is not misleading. Those are the facts according to the Central Bank during the period Mr. Jarrett was referring to.
The point of the blog was to show that the PLP have been just as irresponsible as the FNM with the debt, and not as Mr. Jarrett was attempting to make us believe.
I also agree that the FNM have been atrocious borrowers and think they are headed down the wrong path and have pointed that out in several other blogs here.
Of course the PLP would have borrowed no less in the last three years than the FNM have. At least they haven’t been complaining about it. In fact they say the FNM have not done enough!
Does that mean they would have borrowed more?
Check out what the Moodys web site is saying about our debt.
It’s scary!
I really feel sorry for future generations if this boat is not turned around.
And the answer is not higher taxes. It’s less government!
Oh, I forgot.
The five years in question were supposedly years of fantastic economic growth.
Why should we have had to borrow and end up with such huge deficits if that was really the case?
Quite simple Rick… The PLP has made it clear that they would have made sure that most if not all of that borrowed money got into Bahamians hands!! They would have done the same thing that they did with TWD Highway and the Blue Hill Road expansion..ie.. Break it up into smaller portions so that Bahamians can get the contracts!!
And rather than giving all the large projects to the same companies all the time, they would have spread them around so that the money can reach more families! How can you say that the PLP has been just as reckless as the FNM with the debt when the first PLP managed to keep the debt at about $1.3 billion in 25 years and the second PLP in 5 years added around $700 million in 5 years.
Whereas the FNM added more than $1 billion in their first 2 terms and almost $1 billion in the first 3 years of their third non-consecutive term in office!!
At the end of the FNM’s third (3) terms in office, they would have added more than half of the National Debt that we would have in 15 years. Whereas the PLP would have added less than half of that debt in 25 years!! To me there is NO doubt as to which government is the more responsible..
Oh, and as to the question of “supposedly years of fantastic economic growth”, The FNM also said that the years between 1992 and 2002 were also supposedly years of fantastic economic growth!
But I can see that each government will have to borrow more and more money simply because what $10,000.00 could have done 30 years ago simply cannot be done today… This is simply the way of the world!! Things will get worse and worse… But obviously things were not as good under the PLP neither the FNM as many thought so I see your main point which is, Why borrow money when things are so good…
Years of economic growth under the FNM. Agreed 100%
Government is simply too big.
The debt that has been piled on is atrocious.
However, to suggest the PLP would put it in Bahamian hands is, well, a joke.
The other question is, should we ensure it get’s in Bahamian hands.
Don’t we want the best possible job?
Besides, isn’t that wealth redistribution? Something we should want to avoid.
I’ll take it from you and give to my buddy?
That’s what I want to see end.
“To suggest the PLP would put it in Bahamian hands is, well, a joke”. That’s what you say but the proof is there.. There was a first road improvement project that was signed before (remember that?) and after that went belly up, the PLP negotiated to have Bahamians do it in phases and the TWD Highway and the expansion on Blue Hill was done, that’s proof of putting the money in the hands of Bahamians!!
“Don’t we want the best possible job?” I guess you are one of those persons who believe that foreign is better! OK..
“I’ll take it from you and give to my buddy?
That’s what I want to see end.” Well keep dreaming because that happens in every country around the world! The people you help are the ones who support you, that’s the Human way! In fact God operates the same way.. He helps those who believe in him and the others feed of those persons…(The wealth has to be spread around) This is the one reason why I do not support the idea of any one party being in office for more than one term.. They get too complacent which is why no one party will ever be in office for 25 years consecutively ever again!! The PLP being kicked out of office after only 5 years after being re-elected is proof of that!
One final thought from me on this one for now Objective Thought.
Some brilliant observer once implored us to remember that a government big enough to give us everything we want, is big enough to take everything we have.