A few days ago I was flipping through ‘the edge’ a business cum economic tabloid. The write was rather a mixture of academic stuff and economic news report. Nobody really understands the present economic turmoil other then repainting the month old scenario. Repeating the same old US subprime tales. Of unemployment, retrenchment, growth statistics and industry collapse.
What matters to me most are the fate of rural massses, I mean the third world poor. They dont buy economic figures. They need to buy rice and sugar. They need them now. Governments must act extremely fast before the likes of 1998 jakarta’s social unrest that brought down suharto 10 years ago recurs. its not about politics but plain economic plan to ease and alleviate food and financial crisis.
Hard Cash money should flow and spread fast. Food coupons are no good as it restricts movement and limits distribution. Cash must be the answer, I mean outright cash handouts to the masses. And make sure they dont save this cash. The poor will spend, as usually all their money are disposable. Spend and the money goes down and make the round.
Tax break and rebates do no immediate good. Taxpayers are people with good disposable income. At this point in time, they wont spend much as they have already had what they needed. If they are employers they will find excuses not to employ but to retrench. That is natural occurence, everywhere.
I dont believe in tax breaks but I believe in cheap basket of goods. So governments should work on this issue. Monitor cpi (consumer price index) closely. Check the hoarders. Beware of unscrupulous consumer good traders.
Believe me this dark economic predicament will only see light in the early 2010, if the stimulus packages will only open the wrappings when the tide is at nose level. It needs to be urgent. Really urgent to prevent the domino from falling. Resuscitating economic breathis akin to mouth to mouth…something