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LETTER OF THE DAY: Negative impact of the underground economy
published: Thursday | August 23, 2007
The Editor, Sir:
The underground economy is certainly a means by which our people earn money and is not reflected in the GDP. That is the reason the IMF argued that the GDP per capita for Jamaica is understated, thus not giving a true reflection of our standard of living.
This is quite frank, but what we can also argue is that the underground economy is stifling our ability to grow, in the sense that guns, drugs and other abusive substances are traded which poses very serious problems in our society. The underground economy transformed our society from s a peaceful one to a society characterised by crime and violence.
The underground economy generates revenue on an individual basis; however, the repercussion is the cost to us. The government, by virtue of the fact that there has been an upsurge of crime (linked to an increase in illegal gun supply) will have to spend more in order to curb crime and the fact that crime is not a positive for any society that wants to attract investors, the rate of increase of investment will decline.
We should ask ourselves: is there any quantifiable cost that we can attach to potential investors not wanting to invest because of a sense of insecurity? No, because we don't know how many investors we have turned away because of this feeling of insecurity. So let us not take a myopic view of this because the underground economy is more of a cost burden to us than we can readily detect. It indeed generates revenue but the consequences incur costs that the government and the people have to bear. Therefore, it is actually hurting us and we are not seeing it.
Bringing in the guns
For us to better understand the negative effects of the underground economy on our society, this is what we must do. Each time a problem arises and crime and violence is the cause, bear in mind that most times this has risen because of the practices in our underground economy which are bringing in the guns.
Think of tourism and how crime can affect this industry. Think of how many jobs could be created and are not because of potential investors not wanting to invest. Bear in mind that there are also social factors involved. What are we teaching our youths? Many of our youths possess this 'get-rich-quick mentality' and the underground economy being an avenue where they can 'get rich quickly' they are attracted to it.
Therefore, because it has so much social and economic cost, then a deliberate effort must be made to at least reduce activities in the underground economy to prevent the inflow of guns.
I am, etc.,
DAMION MARTIN,
damionmrtin@yahoo.com
University of the West Indies
Mona Campus, St. Andrew Via Go-Jamaica
published: Thursday | August 23, 2007
The Editor, Sir:
The underground economy is certainly a means by which our people earn money and is not reflected in the GDP. That is the reason the IMF argued that the GDP per capita for Jamaica is understated, thus not giving a true reflection of our standard of living.
This is quite frank, but what we can also argue is that the underground economy is stifling our ability to grow, in the sense that guns, drugs and other abusive substances are traded which poses very serious problems in our society. The underground economy transformed our society from s a peaceful one to a society characterised by crime and violence.
The underground economy generates revenue on an individual basis; however, the repercussion is the cost to us. The government, by virtue of the fact that there has been an upsurge of crime (linked to an increase in illegal gun supply) will have to spend more in order to curb crime and the fact that crime is not a positive for any society that wants to attract investors, the rate of increase of investment will decline.
We should ask ourselves: is there any quantifiable cost that we can attach to potential investors not wanting to invest because of a sense of insecurity? No, because we don't know how many investors we have turned away because of this feeling of insecurity. So let us not take a myopic view of this because the underground economy is more of a cost burden to us than we can readily detect. It indeed generates revenue but the consequences incur costs that the government and the people have to bear. Therefore, it is actually hurting us and we are not seeing it.
Bringing in the guns
For us to better understand the negative effects of the underground economy on our society, this is what we must do. Each time a problem arises and crime and violence is the cause, bear in mind that most times this has risen because of the practices in our underground economy which are bringing in the guns.
Think of tourism and how crime can affect this industry. Think of how many jobs could be created and are not because of potential investors not wanting to invest. Bear in mind that there are also social factors involved. What are we teaching our youths? Many of our youths possess this 'get-rich-quick mentality' and the underground economy being an avenue where they can 'get rich quickly' they are attracted to it.
Therefore, because it has so much social and economic cost, then a deliberate effort must be made to at least reduce activities in the underground economy to prevent the inflow of guns.
I am, etc.,
DAMION MARTIN,
damionmrtin@yahoo.com
University of the West Indies
Mona Campus, St. Andrew Via Go-Jamaica
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