PANIC MODE – The OUT-OF-TOUCH PRESIDENT

Economic Corner: Dr. Peter R. Ramsaroop- Economic Advisor to the Leader of the Opposition

–Bent on implementing 1980 failed policies
— Cabinet in panic mode on the economy
Summary
While campaigning in the 2015 elections, then Mr. Granger, as Opposition Leader, campaigned on creating jobs for young people.  He blasted the then PPP Government for the lack of jobs and a poor economy even though Foreign Direct Investments were at an all-time high, GDP growth was positive and money was circulating and everyone was benefiting from that circulation.
Businesses and jobs were booming, even the vendors and horse cart owners were doing well   Houses were being built, cars being bought, savings in households, banks loaning money.   He was quoted during the campaign as saying “young people with 10 CXCs subjects were working at Mario Pizza or being a Bus Conductor.”
These individuals all had jobs then.

He said the PPP was not doing anything for jobs.

Fast forward to 2017, he now says, “Government is not in the business of creating jobs”, while his Minister of Business is begging us to become entrepreneurs.

What crass hypocrisy!
Promise the earth, hoodwink people whilst trying to get into power and change your tune when you have achieved your objective!

The question now is how can they ever achieve what they had promised – with what money or with which products?
They have basically squandered their inheritance from the PPP/C, uplifting their Ministers salaries no sooner than they had got into government and now shutting down our economy with failed 1980 policies.

Granger, as the ‘Out of Touch President’, seems to be facilitating a Cabinet that is simply panicking because they cannot get it right and  therefore going back to what they know – the failed and discredited policies of the 1980s – when will they ever learn?

Finance, Money and the Economy
Government’s intention to tighten “foreign currency trade” will have destructive consequences on trade and commerce in Guyana, Opposition Leader Dr. Jagdeo has warned.

This was in response to Minister Jordon saying they will tighten the Foreign Exchange Currency Regulations.

In the 1980s, we were burdened with limited US dollars to travel with.

We seem to be going back to another 1980’s policy.

This will lead to even more tightening of the money in circulation and will lead to hoarding.

This is where the ‘Out of Touch President Granger’ and his team keep getting it totally wrong.  They want to control the economy as Burnham did in the 1970/80s, resulting in the massive collapse of our exchange rate and economy.  We seem on track to repeating these failures again.  This is an area that does not need regulation at this time.
Just one more indicator of poor management of our economy, which is causing a rippling effect on businesses.
Such monetary policy will severely affect our domestic economy, leading to a decrease in income and jobs.  We should not, simply follow a contractionary monetary policy.

Why would anyone want to leave their money in Guyana, knowing the possibility and being fearful of Government’s seizure of assets, basically by regulating our exchange rate convertibility?  It will certainly add a new layer of uncertainty and bureaucracy to the trading process.

We have already seen a slow down on money in circulation.  The PPP Budget in 2014 was $220 Billion with the theme “A Better Guyana for All Guyanese”.

APNU’s Budget for 2017 was a whopping $250 Billion with a theme a “A Good Life.”

A good life for whom, the Out of Touch President and equally out of touch Ministers?

I raised the question before –  if the PPP was stealing so much money each year and we now assume that no money was stolen in the last 2 years, and APNU/AFC have $30 Billion more to spend in their budget, why then is there no money in the economy?

The answer is simple –  it was a false assumption, yet they can’t even manage the economy with a bigger budget yet they continue to tax us to death, with over 200+ new taxes and new ways such as parking meters to get at our hard-earned dollars and even allowing their pals in Georgetown City Council to start adding additional fees when you are buried in taxes.

Conclusion
As we continue to analyse in real time the differences in the management of our economy post-PPP Administration, one can understand why many across the political divide feel the need to return to the sound fiscal management of the PPP.

The contrast of results and outcomes can now be measured with real data.

Steady positive growth of our economy for over a decade to declining growth over the last two years under APNU.
Even the sleeping AFC has finally come out against the parking meters, only because both the PPP and citizens have expressed their outrage at the draconic measures presented by the PNC run City Council.

Get involved, all of us, to make this APNU Administration “less” than a one term Government.

We cannot afford the failures to continue.

Stop it while we can.

No Upturn to the 1980s.

Time for the Out of Touch President and his team to go.