Prices in the New Year

[playacaribe2]

cobraboy, you are an economist, so correct me if i am wrong. the solution to the economic malaise is not a massive tax increase. the government should have focused, primarily, on spending cuts. a country of 9 million people should not have 650,000 government employees. the head of the Central Bank should not be earning a higher salary that the POTUS. the deficits that the country is experiencing did not arise from revenue shortfalls, but from spending overruns. therefore, if that aspect goes unattended, no amount of tax revenue will fix the situation. over to you.

So true....but it is the easy solution for all governments.....and lets not forget that these new taxes are not to correct any balance of payments problems, i.e arrearages....they are just so that the government can meet its anticipated spending deficit for the current year.

Wait till the IMF comes in at the end of the month and starts to talk about the new taxes to meet the current arrearages. If it has not done so already, the DR is/will start to lose any edge it has with expats or businesses moving there, and quite possibly may drive expats elsewhere....not to mention a slowdown in an economy that institutes the kind of sudden and radical tax increases just implemented. Absent some sort of economic surge, the handwriting is on the wall, the economy will slow even further.

The IMF predicted 4% growth in 2012 and it may well come in under that. That is down from 7.8% growth in 2010. Projections for 2013 are in the 3% range....yet borrowing and spending has not been adjusted downward to reflect a slowing economy, and thus the need for new taxes to maintain the status quo.

None of this can be easy on the average Dominican and in the months ahead as the reality of these taxes sets in, I expect to see some real pushback by some or all of the usual protest groups.


Respectfully,
Playacaribe2

 

[Criss Colon]

"Rep Dom", do you know why you don't see people riding bicycles in the DR??????????????????
Because they are all DEAD! :dead::dead::dead:
Change "DR", for USA in this thread, and you are still right!
There IS Eternal Life" on Earth!!!!!
It called a "Government Program"!!!!!!!!!!!
Be like a Mormon, stockpile a years worth of food in your house!
Be like "ME", have a 12ga. to keep it!!!
"Call before you visit!!!
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC

 

[rubenpriego]

A high increase of prices in a country where prices are already ridiculously high, western prices for dominican salaries ...
But looks like there is no problem at all, making DR citizens poorer and poorer ...
In other latin countries that would turn clearly into one word: revolution.
Here looks like they prefer to starve and get literally "nothing" from their salaries ...
Wondering why ...

 

[Criss Colon]

Too many "platanos"????????
Those little black seeds inside are a narcotic.
Toxic build up over time.
That's why Dominican kids are normal. until about 12 or 13.
After that, it's Too late"!!!!!
CCCCCCCCCCCCCCCCC

 

[jonytuga]

My father always said,the more we lowered more we show our asshole, so it looks to me that the dominicans are ready to be "sodomized" by their own government.:devious: If nobody complains it's because everything is okay in the republic of "Bananas"
JT

 

[cobraboy]

From yesterday's DR1 News:

They aren't "eating it." Corporations don't pay taxes. Their customers do.

They increase their prices and still charge 16%, but will pay the 18%. It's built into the price.

 

[cobraboy]

"My teaching of history tells me that all bad government, comes from too much government" Thomas Jefferson

apply it to the US, DR, etc....

and it always gets bigger, never smaller.

Gubmint creates the problem and then pats itself on the back with a supposed "fix."

A pox on all their houses.

 

[cobraboy]

cobraboy, you are an economist, so correct me if i am wrong. the solution to the economic malaise is not a massive tax increase. the government should have focused, primarily, on spending cuts. a country of 9 million people should not have 650,000 government employees. the head of the Central Bank should not be earning a higher salary that the POTUS. the deficits that the country is experiencing did not arise from revenue shortfalls, but from spending overruns. therefore, if that aspect goes unattended, no amount of tax revenue will fix the situation. over to you.

Agreed.

In specific economic terms, it's "bad mojo."

They did it to get another hit of IMF cheese before the cold sweats and fiscal diarrhea of deficit spending withdrawal sets in.

They are desperate...

And, yes, taxes almost ALWAYS slow an economy down all things being equal. To think gubmint can better allocate resources and increase monetary velocity it absurd and just plain ignorant.

 

[cobraboy]

So true....but it is the easy solution for all governments.....and lets not forget that these new taxes are not to correct any balance of payments problems, i.e arrearages....they are just so that the government can meet its anticipated spending deficit for the current year.

Wait till the IMF comes in at the end of the month and starts to talk about the new taxes to meet the current arrearages. If it has not done so already, the DR is/will start to lose any edge it has with expats or businesses moving there, and quite possibly may drive expats elsewhere....not to mention a slowdown in an economy that institutes the kind of sudden and radical tax increases just implemented. Absent some sort of economic surge, the handwriting is on the wall, the economy will slow even further.

The IMF predicted 4% growth in 2012 and it may well come in under that. That is down from 7.8% growth in 2010. Projections for 2013 are in the 3% range....yet borrowing and spending has not been adjusted downward to reflect a slowing economy, and thus the need for new taxes to maintain the status quo.

None of this can be easy on the average Dominican and in the months ahead as the reality of these taxes sets in, I expect to see some real pushback by some or all of the usual protest groups.


Respectfully,
Playacaribe2

Absolutely.

7.8%->4% is a HUGE drop, and going to 3% is even worse.

Heck, 4% doesn't even keep up with REAL (not the CB-political propaganda number) inflation.

In terms of real currency, it could be a depression...

 

[the gorgon]

Agreed.

In specific economic terms, it's "bad mojo."

They did it to get another hit of IMF cheese before the cold sweats and fiscal diarrhea of deficit spending withdrawal sets in.

They are desperate...

And, yes, taxes almost ALWAYS slow an economy down all things being equal. To think gubmint can better allocate resources and increase monetary velocity it absurd and just plain ignorant.

thanks, cobra. that is my position, so i guess i am not too far off base.

 

[Rep Dom]

@ Criss
"Rep Dom", do you know why you don't see people riding bicycles in the DR??????????????????
Because they are all DEAD! :dead::dead::dead:

I agree bicycling is a "bit" dangerous, not only in the DR but everywhere. But I think it's possible if you're carefull.
And they're all dead, not really, I see quite a few poeple bicycling, some daily, even on the main road of Sosua.
And BTW, bicycling was one amongst other solutions

 

[curious29]

bicycling is dangerous only if you are idiot (as cyclist), or the drivers are idiots

 

[the gorgon]

Absolutely.

7.8%->4% is a HUGE drop, and going to 3% is even worse.

Heck, 4% doesn't even keep up with REAL (not the CB-political propaganda number) inflation.

In terms of real currency, it could be a depression...

but, CB , as we all know, they always quote the nominal figure, since they want to obscure the truth that the figures could be negative, in real terms.

 

[cobraboy]

but, CB , as we all know, they always quote the nominal figure, since they want to obscure the truth that the figures could be negative, in real terms.

Which is why ignorant idiots vote for smarmy morons...

 

[the gorgon]

Which is why ignorant idiots vote for smarmy morons...

don't be so hard on them, CB. most of them don't know any better.

 

[Criss Colon]

When that huge truck hits you, it won't matter how careful you are!
I don't worry about myself, it's just that nobody else does either!
CCCCCCCCCCCCCCCCCCCC

 

[cobraboy]

don't be so hard on them, CB. most of them don't know any better.

Yeah, well, they're peeing on the shoes of us that do know better...

 

[cobraboy]

When that huge truck hits you, it won't matter how careful you are!
I don't worry about myself, it's just that nobody else does either!
CCCCCCCCCCCCCCCCCCCC

My favorite Woody Allen quote:

I'm not afraid of dying. I just don't want to bet there when it happens...

 

[redserge]

Here is an ad from La Sirena today;

Man these prices are 50-60% cheaper than the same type products here in Canada.................!!!!!! we pay 200 pesos for 2.5 lbs of Uncle bens rice!! The chicken at 89.95 pesos would cost you here 280 pesos. The kicker is that we earn salaries here that make our prices normal to us I feel for the Dominicans who earn so little that good food is out of reach. I save enough on groceries while I am down for two or three months that I eat very well with no hardship!

 

[Rumble2005]

Fiscal Cliff

This is about the US fiscal cliff but applies to the DR as well IMO:

?Fiscal Cliff? in plain English

Lesson # 1:

* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $14,271,000,000,000
* Recent budget cuts: $ 38,500,000,000

Now, let's remove 8 zeros and pretend it's a household budget:

* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts so far: $385.00

Got It ? ..... OK now,
Lesson # 2:
Here's another way to look at the Debt Ceiling:

Let's say, you come home from work and find
there has been a sewer backup in your neighborhood
and your home has sewage all the way up to the ceilings.

What do you think you should do .....

Raise the ceilings, or remove the ****?

Edit to add that this is a copy / paste job. Not my writing.