Monday, April 28, 2014

Greed to the Extreme = Chaos

Taxation has its place in any economy. It's what is needed in order for the nation to survive. However when taken to the extreme, it hinders rather than helps what the government of the day is trying to achieve. Politics has proven by way of the results, though packaged differently, that virtually are all parties seem to be the same - undeliverable promises made to capture votes.

There's something when the populous raises alarms that go unheeded. When the pain of a people is being heard and yet ignored. When people who are thought of as peaceful seem to be continually trampled by decisions that off ill effect. What is being put forward by the governments of the day seems to be win/lose rather than win/win. Macro economic policy seems to be decided upon by micro economic situations - hair extension brands, rims for vehicles, how much money small businesses make like hairdressers etc.

In short, government policies can help or hinder business development. There must be strategy to allowing businesses to develop and thrive so that collections can be made from profitable, sustainable businesses. Business owners must be allowed to have money so that they can make decisions that positively influence their businesses and the community within which it operates.

Caribbean businesses have not yet developed a profit mindset. The lack of strategies speak to this when one meets with the entity's decision makers and discuss the "methods" used to develop their business' model. Most businesses seem to adopt the "for me to succeed, you must fail" thinking. Yet others seem to have a need to spend when money is received to reset their accounts to pre revenue levels. Very few businesses have a plan as to what they need to do with any surplus cash - the result is then wastage.

When taxes can get to the level that they surpass the price of the service / product offered [see regional airline tickets] then we know we are really living in troubled times. Though it has not happened yet, the result over time can be chaos, when people are pushed to their limits and finally exceed their breaking points. We need to take heed and do so quickly.

[image was found on the internet] 

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