Policy Choices & the Opportunity Cost Equation

[Don1]

1. Govt proposes to borrow funds to develop a certain project

2. Interest groups which may benefit start blowing their trumpet

3. The project is a traditional one with known outcomes historically.... but in their myopia persons are very comfortable with the familiar...even if it is sub-optimal

4. The money is borrowed and...Voila.... the outcomes are sub-optimal

5. Surprise!!


The problem here is failure to look beyond a narrow project analysis ... i.e. the failure to perform an opportunity cost analysis. That's how people's money is wasted

[Assasin]

No just borrow it and put it in infrastructure and mask 60% of the money to ministers, dons and friends with cost overruns and no plan to maintain it.

[Don1]

No just borrow it and put it in infrastructure and mask 60% of the money to ministers, dons and friends with cost overruns and no plan to maintain it.

Nope that's a wrong prescription.

Since one has to borrow...choose to use the debt to finance projects with a high ROI... this would exclude of course the cruise industry which has abysmal ROI

Jamaica should be spending on education reform and community development as priorities... not facilities for obese visitors

This is so simple a concept...but so difficult for Jamaicans to understand ....
Economic decision making is all about the opportunity cost equation of relative ROI

[Assasin]

Education have nothing to do with cruise industry and the port is not an excuse for not investing in Education.

Your argument lack any real base. It is not education or curise port. We waste enough in areas are giving returns only to politicans and their friends. Deal with that.

Any society who value education also value and make sure there is the opppurtunty for jobs and entrepreneurship. Tourism provides a platform for that.

[Don1]

=Assasin;440674]Education have nothing to do with cruise industry and the port is not an excuse for not investing in Education.

Typical myopic Jamaican reasoning. You do not understand the opportunity cost equation.

Where resources are severely limited and even debt financing is difficult & expensive to access because the country is over-leveraged... borrowing US$200 Million to sell trinkets, cab rides and dolphin sightings has EVERYTHING to do with funding education... or not

Wake mi when you have the capacity to understand that opportunity cost scenario

Your argument lack any real base. It is not education or curise port. We waste enough in areas are giving returns only to politicans and their friends. Deal with that.

Yes it lacks basis to persons who are one-dimensional and traditional in their thinking... I understand that

Such persons will see nothing wrong in going into ruinous debt so that taxi drivers can burn expensive, imported gas to eke out a living or in-bond merchants and attraction owners can make a healthy income wit tax-payers generous subsidy ... and at the end of the day all the courty is left with is the visitor's shiit to clean up ... i.e. very low ROI

People who are serious about development know that this is sub-optimal folly

[Assasin]

Nothing wrong with cleaning ****. that is the first thing.
Even in the bigest technology company or most modern country somebody have to clean the ****. Just remember that the next time you use a public toilet or your own for that matter
You can't tell me about technology education or education(I have spent enough time there). No doubt is is of major benefit to the nation as a whole but before you start talk bout the port, talk bout the JEEP money and other money spent on political stuff. Your campaign against the port is taken from someone with blinkers on.

Nothing is wrong with been a taxi driver and making an honest earning. It is called entrepreneurship and the ones who can do it smartly are making more than some engineers and I have worked with many engineers o keep on yapping. Again if we prepare ourselves the ship port can be successful and be a positive for the Jamaican economy.

[Don1]

I have dealt with JEEP. in the past..no need for me to deal with that again

You are entitled to your views no matter how backward.... no worries there

Yet another of my predictions has come to pass... unfortunately. Lee Kwan Yew would undoubtedly agree with my insightful analysis & prediction ....woooiiieee

You may carry on if you wish but mi dun wid dis

[Assasin]

yeah, only the port you see as waste. A wonder why???