Reject debt-based systems

Sunday, January 15, 2012

Dear Editor,

Consumption is what triggers production and not the other way around. I am sure that our economic planners must know this. They must know that consumer disposable/discretionary income is what allows them to demand goods and services which businesses seek to provide.

If we provide billions of dollars in waivers to large businesses it will help them, not the country. Recall that in the case of the USA, the banks used the stimulus money to buy other banks and pay directors huge bonuses. Here at home, a company — after receiving five years of tax waivers — announced the redundancy of over 70 workers and the moving of some of its operations overseas.

Despite a catastrophic fall in aggregate demand since 2007, prices still seem to be moving upwards although economic theory suggests that as demand decreases prices should also decrease. It seems, however, that sellers and producers of goods and services are attempting to obtain the same or greater value from the smaller quantities being demanded, which is helping to fuel increases in cost across the market.

The increasing cost of Government and of the goods and services that it provides are a major catalyst in fuelling increases in cost and reduction in consumer disposable/discretionary income. Farmers' markets and quantity discounts by companies are admirable initiatives. However, high production costs will have a negative impact on disposable/discretionary income and employment.

Consequently, it has to be a concerted effort, a philosophical mindset, led by Government, to get prices down and to go for increasing volumes/greater stock turnover as a way to increase our values and increase employment. The only way to lead is by example. Our very sovereignty is at stake. We must reject the debt-based systems that seek to re-enslave us.

Carlton Stewart

Stewart.carlton@gmail.com