This is sadly step 2 in the current DR administration's quest to choke and arrest the Dominican economy. Today the DR1 news reports that the Mejia administration is sending a major tax increase bill to the congress. The Mejia mafia claims that they need the revenue to make up for a short fall due to the worldwide economic slowdown. They also need more to service the growing debt: here is the sequence of events:
1. borrow more than you can pay
2. raise taxes during an economic downturn
3. revenues go down even more
4. currency accelerates downward spiral
5. print more money
6. inflation goes through the roof.
7. capital leaves country
8. mobs rule
I posted this 6 months or so ago, during the Argentina debacle. What can be done to stop this runaway train?
mondongo
1. borrow more than you can pay
2. raise taxes during an economic downturn
3. revenues go down even more
4. currency accelerates downward spiral
5. print more money
6. inflation goes through the roof.
7. capital leaves country
8. mobs rule
I posted this 6 months or so ago, during the Argentina debacle. What can be done to stop this runaway train?
mondongo