Rick Lowe
I re-worked this post from a few days back and sent the following Letter to the Editor of the local newspapers:
Dear Sir/Madam:
In spite of tariffs being the major source of revenue, when revenue drops government spending continues at the same rate, or even higher. Where does the extra money come from? You guessed it – the tax shortfall is covered by money borrowed from the credit markets.
"Shouldn't the country expect a "shadow budget" from the official
opposition?"
The country is now informed that taxes/revenue are only 19% as a percentage of GDP, and in the scheme of things we're under taxed compared to other nations. However, GDP has grown substantially over the years, so shouldn't government revenue have done the same?
Well it did. From 2003 through 2008 government revenues totaled just over $7 billion. But spending was over $8 billion.
So as the debate turns to changing the tax regime (read higher taxes), and citizens are told that import taxes are not enough to maintain the country, its worth remembering those numbers for some fact checking in the future.
But, isn't GDP declining as a result of the economic downturn since the fall of 2008? If so, shouldn't taxes/revenue as a percentage of that GDP be rising since, according to some reports, revenue has been stable?
While all taxpayers should fully understand the economic troubles the country faces, should citizens be required to pay more taxes because of the profligacy of successive governments?
The answer, that is well known, is to reign government in as Canada did in the 1990's. The Government of The Bahamas is far too big and it consumes and wastes far too many valuable tax dollars to be trusted with even more of the proceeds of picking taxpayer pockets, just because they can.
In other words, higher taxes are not the best idea in these economic times. Winston Churchill seemed to know better. He's quoted as saying:
"We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle."
With all that said, this would be the perfect time for the official opposition PLP to prove their ability to lead the country out of this mess. Will the PLP show in this matter as the Conservatives supported the Liberals in Canada with their initiatives to sort out their long running fiscal problems. Or, will the country get anything other than eloquent polemic debate from them? That's what's been offered up so far, and they say that's what's required from the official opposition.
They can read the scorecard (economy) as well as, or better than most so why can't they make suggestions on what they would do if they were the government of the day? Are they bereft of ideas or are they just hoping the FNM will fall on its proverbial sword?
Both political parties are in a quandary over this mess. If they say too much, they'll be charged with mishandling the country for decades. But the governing party has presented its ideas in the form of the 2010/2011 Budget. Shouldn't the country expect a "shadow budget" from the official opposition?
Maybe if Parliament were to go on vacation for a year or so, the patient just might heal itself.
So, where to now Parliament? It's all in your hands.
A shadow budget from a shadow opposition.. Why not, neither political party has ever seen the sunshine never mind their own shadow.. Neither recognize the pressing dangers of debt, deficits or economic depression which confront our nation.. It’s the economy stupid plays as well in the Bahamas as it does in America..
I really think you’re over simplifying this issue. Let’s just say that the opposition had a magic bullet to our problems, how do they get Hubert and the FNM to support it. That the real issue, how do you get leaders from the opposite side to support your ideas. eloquent speech is not gonna do it.
My question to you is; “how would YOU (Rick) go about getting support as the opposition?”
I agree with most of what you say, but I would like to know how to go about getting an arrogant government to see and accept your ideas.
Thank you Tradewinds and Trevor B:
My only objective is to get Parliament (PLP in this specific case) to show us they have the ability to correct things.
When you visit any Parliamentarian (PLP or FNM) they ask you to bring solutions not just complain.
Should we expect no less of them, particularly when the country is in deep do-do?
Sorry, but I’m laughing my posterior off, with respect of the comments by the Minister of Education saying that
As the national grade average is so bad, we will eliminate it!
Wow, so profound!!
So, If Bahamians are having too many car accidents, we should just eliminate the cars……
or the Bahamians?
Man, things are accelerating down the bowl.
It will be a total waste of time for the PLP or any other opposition party to introduce a shadow budget when the constitution is clear that only ministers can introduce a “money bill” to parliament!!!
Rick, you should try reading your constitution some time rather than asking for silly things to be done…
Exactly how would the opposition introducing such a bill help the Bahamas at this time???
If the FNM accepts such a thing, they would be admitting that they have ran out of ideas and that they have failed!!! That will NEVER happen and you know how stubborn HI is Rick!!
Not to present to Parliament OT.
To present to The Bahamian people.
Tell us exactly what they would have done rather than moaning.
They always tell Bahamians to present ideas to solve the problems when they are in power, not simply complain.
So what do they do? You got it. They simply complain!
How boorish.
I read with interest this article and one a while back on Electoral Reform by Larry Smith, and some of the ideas put forth for resolution of the political and economic problems of the Bahamas.
The statistics enumerated in this current article about the state of the economy may seem alarming but many close observers of the Bahamas have seen this coming for some time. It has been quite obvious to anyone who took the time to look that the Bahamas has been on a significant slide for some time. Even worse, there is no end in sight for this picture because no government has as yet even proposed any real solution to the problems. In any event, any effective solution including some proposed by others are by necessity long term solutions.
Certainly while the FNM govt seems to have a more stable approach to governance it seems to lack the visionary ideas to move the country forward economically. The PLP administration likewise seem to be bogged down in keeping the old guard and old ideas in place, and even those progressive voices in the party seem to be stuck in not being able to promote their progressive agendas.
In any event, no political party seems to have the solution to the economic woes of the country. A capital market driven economy which provides for, and promotes local ownership of the major tenets of the economy is essential in the modern global economy.
In addition, electoral or better still government structural reform is necessary, see for example the following article written some time ago delineating some changes that may help.
http://hannaian.com/stringsfreecarib.html
The problems with bringing about change is that folks in charge don’t usually want to change things, even if they recognize the need for change and the solutions available.
As Bruce Golding the current Prime Minister of Jamaica recognized some years ago, one solution stares us right in the face and few of us seem to recognize it. A system of Governance similar to the United States is a choice which brought that country from no country to the greatest politcal and economic power of the day and did it in a short 200 years. This marvel of development in the U.S. came about partially because of their use of a constitution that promoted and nutured such development.
Why reinvent the wheel. Many of the changes that Golding and other visionaries in the Caribbean see as the solution embraces much of the elements of the U.S. system of governance.
The example of Bruce Golding in Jamaica may be instructive. He came to power with excellent ideas and has not been able to even begin to bring about the type of reforms he envisoned based on the fact that those in control do not like to change the status quo that put them in control.