Sunday, November 04, 2012

Why does Jamaica need austerity?

I read with interest the call by Chris Zacca, the PSOJ President, to advise Jamaica's about the austerity measures we are about to undergo with the IMF and it reminded me of a statement made by our PM, Simpson-Miller a few years ago, that it is important to balance people's lives while balancing the books. To many this may have seemed like an election statement, but nothing could be truer about the way we need to approach our future. In any negotiations with the IMF it is important that this is born in mind, especially as I hold to the belief that austerity is. Other necessary to see prosperity in Jamaica. In fact my firm belief is that austerity will only lead to more prolonged suffering for Jamaicans. Europe has experienced this and along with the IMF is retreating from the original austerity focus in favour of the previously rejected stimulus. I want to hear from the voices that were once very much in favour of austerity measures being imposed. I believe Jamaica can easily address much of our economic challenges if we allow ourselves to implement fiscal solutions to our law and order energy options. These hold the key to our economic turnaround and not fiscal austerity. Thee should of course be responsible fiscal spending, but austerity will drive us further into the ground. If we take the appropriate fiscal actions and the necessary calculated risks we can avoid austerity and see robust economic development.

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I share your views Dennis. The social consequences on further shrinking a shrunken economy can be devastating.

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