Trickle-down economics, or “trickle-down theory,” states that tax breaks and benefits for corporations and the wealthy will trickle down to everyone else. It argues for income and capital gains tax breaks or other financial benefits to large businesses, investors, and entrepreneurs to stimulate economic growth.
‘Trickle-down economics’ has become a by-phrase for economic inequality, where a few get extremely wealthy and a large swathe of the population are left in abject poverty.
In his opening speech at the Summit of the Americas in California, President Joseph Biden sounded the alarm on ‘trickle-down economics’. He cautioned the 23 leaders of the Caribbean and Latin America about the outdated practice which has consistently proven to bring inequality.
The comments of the 46th President of the United States of America are consistent with the pleadings of numerous local observers who have voiced concerns over the Jagdeo/Ali regime’s approach to economic policymaking. A key member of the Guyana economics intelligentsia, MP Juretha Fernandes has been lamenting, for months, the consequences of this dangerous practice. Local newspapers have been signaling to the administration. All of these efforts have been in vain.
Since August 2020, the Minister of Finance, Dr. Ashni Singh has repeated touted his government’s belief that if you feed the Private Sector with excess, the food will trickle down to those at the bottom of the trough. In interviews, the Second Vice President, who is suspected to be the de facto Minister of Finance, consistently embraces ‘trickle-down’ economics as the perfect model for Guyana’s developmental goals.
It is evident that based on the pronouncements of members of the regime, the government is ideological and philosophically committed to this economic paradigm. ‘Credible Sources’ is doubtful that President Biden’s warning will result in any change in posture of the Jagdeo/Ali regime insofar as this issue is concerned.
Based on the evidence before the people of Guyana for the past months, powerful members of the Private Sector exercise decision-making powers over the regime and there seems to be a perfect marriage between the Private Sector Commission and the Jagdeo/Ali regime. For this reason, the Guyanese people cannot expect any change in this stubborn march to inequality by the regime.
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