Rick Lowe
Here we go again, the Opposition MP for Fox Hill thinks the Bahamas Government should bail out City Markets. He calls it an "intervention".
Of course with the economy in the state it's in, there is a legitimate concern for the employees, pensioners and investors, but that simply confirms that the government should not use taxpayer money to prop up a private business.
If the management, present shareholders, potential investors and even some of the employees do not wish to put their personal money in to resuscitate the business it's pretty obvious they place very little confidence in its survival.
Also, the market, in this case City Market clients, have moved on as they no longer patronize them. That being the case, why on earth would it be considered sensible to spend tax dollars – money the government does not have – to help them limp along any further?
Governments must do what is in the best interest of everyone. Attempting to rescue a failing business with tax dollars will only help a limited number of people and then, where do they draw the line in the future when any other business is failing? How can they say no to anyone thereafter?
As Joseph Schumpeter said, "Economic progress, in capitalist society, means turmoil."
And from that turmoil opportunities will develop for future employment as long as government does not intervene with too many regulations and taxes.
In the final, is City Markets really worth saving?
Politicians attempt to create the myth that they can help Peter without robbing paul. Public Choice Theory writ large.
The following video on Public Choice puts it in perspective.
Well that would be interesting if you add the bailout money along with the IPO money that we the people spent with Commonwealth to give the Finlaysons the money to buy them out. Would that be 50, 60 million all tolled?
Good point.
In a democracy every fool has a right to his or her own opinion.. Like banks being required to risk depositors funds on venture capital start ups.. Or government being requested to bailout mismanaged, failing companies.. One must ask themselves what the hell does government really know about running a business enterprise in a prudent manner?? Evidently not very much.. Just look at the track records of our public sector companies like ZNS, Bahamasair and all the rest.. What a sorry mess government have created to serve the public’s interest..
Lets face the hard facts, the government of the Bahamas is broke and must borrow to pay its current expenditures.. The national debt increases every minute of every day.. This debt is like a time bomb waiting to go off.. Yet some want more wasteful spending on failed venture capital investment where the record is terrible and bailouts for failing companies like City Markets.. This “my brother could you spare me a dime” attitude must come to an end.. The government does not have the financial resources to be a lender of last recourse.. Does anyone know who will be the lender of last resort for the Bahamian government?? I wish there was a simple answer..
Rick:
It’s not about helping the unfortunate people who have or will lose jobs, it’s all about political brownie points for him and his party. If he really wanted to demonstrate concern for these people he would try and find jobs for them and he could be the first to chip in some dollars from the constituency funds he receives as well as from his personal account.
The Bahamas government is not in a position to bail out anyone right now….They need to work on their own debt issues…While I feel for the people who have lost their jobs, the question to ask is this…Do you really expect a company to keep stores open if it is losing money? It is a logical business move to consolidate and streamline operations. If the workers do not have any other skill, perhaps the government can help get them trained with another usable skill.
KM
This action [a bailout of any kind] would be the proverbial opening of Pandora’s box for the Government… and once opened we’ll never get it closed again. Remember, the Government will be paying some unemployment as well. The present ownership bought this with eyes wide open…. Caveat Emptor !
Bailout my foot ! What a stupid, stupid thing to even mention.These politicians are full of it & I have had enough of them all.
Dennis, you hit the nail in City Market’s coffin right on the head.. I am most saddened by this unnecessary development..
Its just so crazy its sickening.Are these people so stupid that it does not matter to them ? We are getting killed with taxes now, in fact, I would say that the way we are taxed on our business license, the government DOES NOT CARE about small business or any other for that matter.maybe they think everyone thinks like them, well I got news for you government, we don’t.They wake up on God knows what side of the bed & make all sorts of changes with absolutely no consultation with business people.They swallow everything someone says about everything except crime.In my opinion Mr.Lang is way, way off base.