No need for big wage increases if the government grows the economy

Jamaicans see anything less than a 10% increase in salary as a huge insult, but that is what obtains in the Easter Caribbean.

I lived in the Eastern Caribbean for close to ten years and the biggest pay rise I received during that period was 3.5%.

The average pay increase is between 1.5 % and 3.5% and this is normal.

They have been able to pay these rates for a number of reasons

  1. The dollars is fixed hence no devaluation vis a vis the US $ and no price increases as a result of this factor.
  2. Very low inflation rates as one is not subjected to any movement in the exchange rate
  3. There is robust Economic growth.
  4. Low unemployment rate.

The Jamaican economy does not see items 1 – 4 and hence the workers sees their dollar literally shrinking  by the hour and with it their purchasing power, hence they seek to raise hell when it comes unto negotiations to get  pay increases to compensate them for loss of purchasing power.

The failure of the party in power for the longest period to create economic growth is the main reason why we are here today.

I actually laugh when I hear that the PNP is now doing a great job to rescue the country. I laugh because they have been the main destroyers.

We appear to be a nation who revel in mediocrity, because the PNP has done such a poor job over the last 22 years and has finally been pushed not by Jamaicans but by the IMF , have now begun to take steps to repair the damage they have done to the Jamaican economy.

Once upon a time a man took a hammer and decided to wreck a chair at his home. Having calmed down he decided he would now take steps to repair the damage that was done. Someone who was passing by said ” hey man you are doing great job, with that chair”, he smiled and said ” Thank you very much”. Under his breath he said : ” If you only knew the full story”

It remains me of the PNP, having wrecked the country, they are now being congratulated for attempting to put it back together. 😦

Had the PNP been a party that was focused on growing the economy vs distributive politics, Jamaica would have been at least 20 years ahead of where it is today.

I have no applause when someone fixes the damage the have created in the first place.


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