One of the bloggers here brought my attention to a short article in The Tribune of Saturday, April 26, 2008 that speaks volumes.
Ms. Taneka Thompson, a Tribune Staff Reporter, interviewed Mr. Zhivargo Laing, Minister of State for Finance about the possibility of the government raising the minimum wage here in The Bahamas in response to rising costs.
Mr. Laing is quoted as saying:
"The extent to which you increase the minimum wage means the cost to (entrepreneurs) goes up, and they may determine it's too expensive to have as many employees and let some employees go so that operating expenses stay in line."
So far, so good.
He is then reported to have claimed that the government is considering other options and these will be announced in the House of Assembly in the near future.
I'm curious to see what these 'options' might be because to paraphrase Dr. Russ Roberts, from this blog... sometime back - there is little any economic doctor can do to move our $6 billion organism of an economy in the next few months. Politicians should focus on the policies that lead to growth over time. Expecting results overnight is bound to lead to disappointment.
But here's the kicker from Mr. Laing in The Tribune that my fellow blogger noted:
"He also cautioned Bahamians about taking on additional consumer loans, adding that he does not think banks should lower interest rates to encourage consumer spending in the current economic climate."
After just sinking the country further in debt to the tune of $100 million dollars - putting our National Debt over the $3 billion mark - the government is not in a position to counsel Bahamians on debt or spending levels while holding a 'first charge' over our assets and income through taxation.
The government should be setting the example by reducing their profligate spending before seeking to call the kettle black.
