Politicians are making all kind of promises. Talk shows are turning every nugget, every quote in to scandal, conspiracy and outrage.
Diehard supporters are working themselves into a frenzy as they anticipate the parties/rallies to come.
Amongst all this excitement, I can’t help but feel that something important is getting overlooked.
Many of the promises that are being made will not be delivered.
The reality is we have no money. Our Economy is reaching the point of no return… and nobody is saying anything.
Am I being alarmist? Maybe…… But somebody has to be.
In the words of a friend on Facebook
The next 5 years will be the most important years of the Bahamas. These will be the years of finding out whether we sink or float.
Despite all the political plans and promises, whoever gets in will have to face this harsh reality.
- We’re basically out of money.
- We’re have a mountain of debt
- We’re Spending way too much
- Our Economy is Stuck in the mud
And when they do, all those pretty promises will go flying out of the window.
I’m no economist but there are only a few ways to get out of this situation;
Grow Our Economy
But according to Moody’s our economy has grown a total of 6% over the last 10 years, therefore it is unlikely that we will be able to grow our way out of our debt.
Our current government seems to be betting everything on the US economy stabilizing and tourism saving us as usually. Maybe it will, however, we still need to find ways to diversify our economy in the long term if we are to permanently get out of this situation.
Do you think cost of living is high now? Have You forgotten the 2010 budget already? The fact is the only reason we are not facing that same kind of budget in 2011/2012 is due to elections. Don’t be fooled.
Increased Taxes means everything will cost more, not just for individuals, but also companies.
Which means they will have to cut cost. Which means more people unemployed. More people unemployed means more crime… and so on and so forth.
Do you see how this spirals out of control?
Fire Government Employees or Sell BEC
There’s only so much the economy can grow and they can only raise taxes so high before the law of diminishing returns kicks in.
That leaves reducing spending.
In case you didn’t know, the majority of The Government’s expenditure is salaries. Therefore this has to be the first area addressed.
I believe the government will have to get rid of staff and the way they will do that is to sell off more of our government corporations, which I’m not totally against, but it has to be done in the right way.
My Point is
Regardless of who win the next general election in The Bahamas, these are the most important issues they will have to address. We need to start asking them what they will do when faced with this harsh reality.
Next time a politician comes to you talking about what they or their party will do if they are elected, ask them how they will deal with these issues.
Specifically, ask them how they will pay for their grand plans?
- Ask them if they will raise taxes again?
- Ask them how they will grow the economy?
- Ask them if they intend to reduce spending and how?
- Ask them if they will layoff government employees, sell government corporations or both? And which ones?
Don’t Trust Politicians
The one thing I’ve come to realize and you should too, is that we cannot trust any politician.
Not that they don’t have good intentions (most of the time anyway) but we cannot sit back and believe that they will make the best decisions for this country.
We have to be engaged in the decision making process , ask questions, and even protest when necessary.
This is the only way we can hope to guide this country in the right direction.
PS. What Questions are you asking politicians that knock on your door?