HO-BOY ... looks like the situation is getting from bad to worse to horribly bad AND horribly worse. The recent petrol price increase together with the recent rice price increase and the upcoming electricity rates increase has made all over us more scared of stepping outside our homes. The streets are clear and theres a sense of deja vu with the movie 'i am legend' ... the emptiness of vast empty parking lots, the windblown briar bush... So what do we do? We listen to the powers that be and the words of wisdom which is ... (wait for it) SAVE! START CUTTING COSTS! DONT SPEND! STAY INDOORS! Woo-hoo! Its like a celebration of idiots the way we're told to not spend and to cut costs. Whats even worse is that the GOVERNMENT is going to cut costs and not spend as much. Now this is very worrying. The government cutting costs? The government as in "a huge complex of activities and duties which covers the entire country" government? THAT government? I'm not an economist but if the government decides to cut costs on their spending, wont it have the following effect on the:
a. hospitality industry: if away meetings in hotels and resorts are cancelled, wont it mean that the hotels and resorts will be losing a hefty chunk of their income? Which will have the effect of last revenue and over-staffing?
b. food industry: having lost their hotel and resort customers they wont be ordering that much food from their suppliers who in turn will reduce the production capacity.
c. transport industry: since all travels within and outside the country will reduced that means this industry too will be losing a chunk of their revenue which for all these years have been coming in like clockwork.
What would be good instead is to just not cut costs thereby creating a devastating ripple effect for everybody in this country from bus drivers to tofu cake makers, is for everyone to have a pay increase of between 30 - 50%. That way all of us (or those of us who are getting a monthly income) can afford to buy things, drive around and maintain the economic machinery. Now is not the time for collective cost cutting, now is the time for collective spending of goods and services. We need to churn the goods and services industry, we should be able to buy houses, go on holidays, watch movies, eat at restaurants and dance at discos! Our income and our lifestyle must be increased to the same level of the burgeoning costs.
My question of the day is: is there a plan?