This article, Banks Facing Billion Dollar Hit in Barbados, making the rounds on Social Media this past weekend is an example of theft by government. No more, no less.

Bear with me.

Barbados was on this trajectory for the last 20 – 25 years with their Government pretending it is a "Unicorn" and could provide services below cost and free university education and more by simply borrowing money to hide tax and cost increases needed to pay for it.

Sound familiar?

You got it, that's the same fiscal trajectory The Bahamas has been on for decades.

While I remain concerned that raising the Value Added Tax (VAT) rate to 12% could backfire and effect economic growth just as the introduction at 7.5% did just three years ago, I applaud the government's alleged concern to right the fiscal ship of state before The Bahamas is backed into the same situation Barbados faces.

All this does not disguise my empathy for the taxpayers of Barbados. They were convinced government could provide every need and wipe every tear, but now they understand it was all a big lie.

Too bad that politicians believe they have to provide fantasies to get elected.

It's even more regrettable that voters believe in Unicorns too.

Read Professor Michael Munger's article Unicorn Governance here…