TAZ wrote:@ Alma.....I'm not really a guru when it comes to macroeconomics but how exactly do you stimulate national productivity. I believe a small amount of increase in government expenditure can stimulate a greater increase in the national income....though i agree 2 years might not be realistic to achieve an economic boom. Increase in expenditure in areas such as Education, health care, defence and infrastructure may increase the national income by increasing efficiency and productive output and capacity.
I hope this topic now takes this path as it can help even I who is totally confused.
Gov't expenditure is good, but when 60% of that is on recurrent expenditure ie money that was probably used in Sabina joy and Ndogo Ngogos, then you are in trouble.
I'm an out and out conservative. I believe the work of gov't is to empower the entreprenuer not to burden the citizen with more debt and costs.
There was an increase in gov't expenditure yes, but on MP salaries and laptops.
Not on the infrastructure and the tools one needs to run a well oiled ecomomic pathway.
Seriously, look at what Uhuru's gov't is going to spend on our security. 5000 policemen to guard our Mheshimiwas. Do you think that is good expenditure? the money will still be used to buy G3's not educating our police service nor getting them good tools to use.
No in this area, we shall increase how much money we spend to buy FAKE bomb detectors.
When other reasonable gov't go through increases in gov't expenditure, they spend them on TANGIBLE assets eg massive transport systems, improved communication, gov't efficiency etc.
Here we increase gov't expenditure to give out bigger tenders and buy things like laptops that will have a shelf life of exactly 14 days in the hands of a 7 year old.
This is not macro economics. Its a tax and spend on white elephants gov't. I pity the macro economists in these offices coz they are doing an impossible job.
Where populism trumps reality.
Jose: If I make it through this thug life, I'll see you one day. The Lord is the only way to stop the hurt.