Recession, what Recession?

Aug 10, 2015 Letters

Dear Editor,
I can’t help but feeling sorry for our economy when commentators keep peddling irresponsible language about our economic situation. Loose talk about economic slowdown and being in a period of recession after the election does us no favours, it however will surely add to the probability that a true recession may be realised. I can’t help but suspect that this is the plan and wishes of some people for our country. These people are of the view that if we can’t run it then we sabotage it. Horrible!
“A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters” is the technical term of a recession. The current government has not even been in office for a full quarter but is being blamed for an economic downturn and in some cases a recession.
This is unfair commentary and blaming of people who are signed up to public service. We need to be more helpful to our country by being more responsible with our language and our behaviour. Confidence in an economy is vital. Undermining confidence with poor language is bad and we need to stop that kind of approach to our critique.
Now that the budget is here I do hope that the naysayers get their wish of an injection of spending into the economy. Their idea of a booster package is one where government spends on large projects which will result in money trickling down through the economy and thus kick start it to their liking.
The underlying issue here for these guys is that they must eat before others, only then will they deem the economy as working. Nonsense! I instead urge the government to boost the economy in the most efficient way, through wages and policy change, not through projects.
Projects take time to get going; time to identify the right project and further time to plan; too long a lag in time for any meaningful injection to the so called “downturn.” If, instead, people get more money in their pay packets they will spend it quicker than big projects are able to. This is the quickest route to boosting our economy in the short term.
In the long term government needs to ensure that the economy is secured from potential saboteurs. This will require them to rebalance the economy is such a way that economic activity is not centralised in the hands of a few. Small and medium businesses must have a space in which they can grow and operate.
A new entrepreneur class must emerge alongside the current owners of wealth and capital. Small businesses must be supported and encouraged to access government contracts and spending. Government has a responsibility to embrace these entrepreneurs by ensuring that at least a percentage of government contracts are rewarded to these businesses. This is the sensible thing to do. This is the safeguard for Guyana’s economy in the long term.
Malachi James

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