Picking up the pieces and moving on

Jitters

There are jitters about the Guyana economy and some observers have moved towards the view that the economy is in recession. This viewpoint should never be ignored by a government even if there is evidence to the contrary or the government can deflect the blame to some other party. It must be kept in mind at all times that the behaviour of an business pageeconomy is, for all intents and purposes, a reflection of the behaviour of its several participants. These participants include consumers who tend to spend the most money. They include the government which spends money to create an enabling environment and in the process add to the spending capacity of consumers. The government’s role includes an intermediate step that first reallocates resources from consumers and businesses to itself. The participants also include private investors who often follow the signals given by the consumers and the government through the level of their spending and the investment opportunities that they open up. When all three participants reduce their spending at the same time, an economy will feel the effects in various ways which include a reduction in private investment and a decline in job vacancies. This article seeks to provide a context in which a discussion on perceptions of the economy, a matter that worries many, could take place.

 

Partners

Despite standing on opposite sides of the counter, the introduction to this article reminds us that consumers and businesses are partners in an economy. They fuel each other’s existence. The consumer provides labour, and in some cases building stock and money that are