Tuesday, June 29, 2010

How Inequality Was Boosted in 3 Easy Steps

By the bean-counting duet with impressive speed:
  1. Create robust inflation (inflation is the worst enemy of the poor) by depreciating our rupee and ripping us off with abusive petrol prices and playing Russian roulette with important components of our welfare state
  2. Collapse a progressive tax system into an inequality-boosting flat tax
  3. Open the gates of Mauritius for a class of rich foreigners


Anonymous said...

That's exactly the economic policy that the two WB-IMF boys (plus third chokra called Cuttaree Jr. in the USA-based institution)have been paid to implement in Mauritius. AMM won't go back because thers's a deal between Chokra'a father and Navin, that's all.

Anonymous said...

Ali M is still here.

Anonymous said...

Stop this please. Talking about inequality.....and why is it ion the past tense....is it gone now???

I think this rama bashing is gone way too far....why not talk about the new FM.

What are his plans, what has he done so far, when will we know about it etc???

Sanjay, you dont seem to be saying a word about this. I bet if Rama was the current FM you would have said he was being tardy in his responses.

This is not fair!

akagugo said...

Are these the "super rich" or the "rich enough to move away and settle without adapting to locals"? Anyways, it has trigerred a lengthy and acrimonious ping-pong match by way of letters in Week-End:1 2 3 4 5 6
Anyways, it appears that most Dodolanders (otherwise very eager to welcome tourists) are wary of this "invasion" of South Africans

Couma-dire bientot bizin koz afrikaner pou capave all batte enn la-bière dans certains bars ...

Anyways, on dit merci qui?

Sanjay Jagatsingh said...

Anonymous #3: I used the past tense because it happened in the past and was created by the two university buddies.

It has certainly not gone away and the current FM could/should have presented a mini-budget by end of June/mid-July to start undoing the 'fanaz-de-dal-massif' of the bean-counter who never missed an opportunity to tell us how he used to sell 'gato-dal (avek ou san tru?)'.

I did hear the FM say that changes will be made in the current calendar year. I am reading this as things will happen before November 2010. I want changes to happen VERY SOON!

Have already written that Ramgoolam should act fast otherwise he is doomed for 2015.

PJ has just assumed office so we have to wait a bit longer to find out what he intends to do and todecipher his philosophy etc. If Rama was still FM (thank God he's not!!!) he would continued with the same crappy policies that I have been writing about for the past 5 years. He would have said something like "the reforms have worked and the people of Mauritius have given us a new mandate to go take them further where no one has ever taken them before (doesn't that sound a bit like Star Trek?).

@akagugo: your definition is better.
"On dit merci a qui?". Petet anonymous #3 kav ena enn lide?

Anonymous said...

I think PJ is in no hurry, I mean come one...even NR is just like that...slow to react, slow to act etc etc.

did you guys see our elected ones yesterday on TV. They cant even speak eng fluently....I was shocked by Balamoody actually....poor man cant even construct a proper sentence.

Anonymous said...

From Anon 3

Cheers for reply. You said the inequality was created by the 2 buddies. Hang on...as someone pointed out Buddy 2 is still in office. So now you think PJ and buddy 2 will mop up the mess buddy 1 and 2 created? Buddy 2 is still the same one!!!

Anyway, why say the two buddies created this inequality in the first place? Where was Ramgoolam....it was a whole govt team thing. And about letting in the super rich...well berenger initiated this and it was bettered by the buddies and Ramgoolam.

I dont think you can look athis whole fiasco as just the work of the 2 buddies, this is just an over simplification.

akagugo said...

@ Anonymous of June 30, 2010 3:24 PM
"I dont think you can look athis whole fiasco as just the work of the 2 buddies"
I'm quite curious to know who else partipated in the "fiasco", as you rightly recognise their feat to be. So, please, any names...?

Anonymous said...

What is wrong with income inequality? What is wrong with the collapse of a progressive tax?

Sanjay Jagatsingh said...

@Anon #4: lokisyon nu bann depite pa terib.

@Anon #5: kuma akagugo pe dir, donn inpe non.

@Anon #6: Presk tu dimunn dakor ki linegalite pa bon (apar nu bann GLD byensir), Mansoor inkli. U kav lir sa usi.

Anonymous said...

The gates for super rich were already wide open when rama became FM.

The gates, for your info, were opened by PRB and PJ.

The Banker said...

Are we in Alice aux Pays des Merveilles, with no inequality? May be some people think going back to URSS days may be the solution to inequality... sometimes i wonder what people have been learning in their economics classes. IMF/WB boys or not this was a government thing and should not put all the -ves on the duo, like NR, that lazy fellow, loves to do. The solution to eradicate total inequality will never be found in such environment, where massive wealth creation to support the coutry's financial bottom line is favoured but agree can reduce same to some extent and let's see what XLD will do with his NGO type ministry

Anonymous said...

You are right, this is how inequality was created. I was watching Tv news last night and the same AM was besides PJ....having a good laugh.

I guess you will soon have to expand on the list of 3....more is yet to come.

lakeminou said...

L'inegalite sera toujours la. Ce que l'on discute ici si j'ai bien compris c'est comment la politique de Monsieur Sithanen et de Monsieur Mansoor a accentue brutalement le fosse entre les riches et les pauvres.

Ce qui est en contradiction totale avec leur objectifs initiaux.

Sanjay Jagatsingh said...

Couldip Lala has an interesting explanation for the increase in inequality: "En revanche, je note que la productivité, l’éthique au travail et la compétitivité ne font pas partie de nos moeurs. Du coup, on ne doit pas s’étonner que l’écart entre les riches et les pauvres continue d’augmenter." Hmm, so it's the fault of the little guy again?

akagugo said...

There is a concept called decent pay that some should ponder about once in a while. Because this, combined with inflation, is compounding the pressure on wage-earners, and at any time, any pretense will be enough for everything to blow up...

Sanjay Jagatsingh said...

Yep and decent pay leads to more decent lives.

Sanjay Jagatsingh said...

VL said this week that inequality has reached unacceptable levels in Mauritius. And that it's probably one of the things that worries him the most. Refreshing conversation don't you think? Hopefully he'll have fast and serious ways of reversing it on Monday.

But he didn't tell us the effect of double-digit depreciation on inequality.