Rubens, I do know that there is a lots of information on Haiti...

Linda - October 22 2007, 6:34 AM

Rubens, I do know that there is a lots of information on Haiti in the archives and in the libraries.

I spent much of the past 11 years of my life retrieving and reading it. (I am not going to start a war with you on who has more college degrees).

However, I can say that since my expertise is not on the economy, I am sure that you know more about it than I do. However, it seems to me that although you know a lot about the economy, your plan still has that exact flaw that I pointed out in my last post. Your revenues all come from the very small elite group, and that is problematic.

You said: "I can build wealth with the few tax money that the Haitian treasury collected: First of all, not all tax revenues are income tax; we also have import duties in Haiti, we also have excise taxes in Haiti, we have territorial taxes (real estate properties taxes).

Correct me if I'm wrong, but it doesn't take an economic genius to figure out that since taxes had scarcely been collected in the past in Haiti, the tax revenues in the coffers right now are minimal.

If that is so, it cannot be considered as asset but as capital because most of it is needed to pay government workers and to begin to fix the country's infrastructure.

So it would really be new taxes that would help. The new taxes that you would be pulling would be minimal since your property, territorial, and import taxes are still generated from less than 10% of your population.

In order to make that small population's tax dollars mean something, you would have to raise it beyond anything that that small group would find acceptable.

Hence, we are back to my point that unless you find an answer for this part of your plan, it cannot work without creating a new and positively lethal problem.

Maybe I got it all wrong.

Let me know.
On the other hand, I do agree with you that someone who knows about economic development can generate economic wealth, even from very little resources.

But that someone needs to keep in mind that there's a lot more to generating growth than mere economics.

If all that mattered was a knowledge of economics than you wouldn't have had so many social revolutions in countries that were basically wealthy.

So, if your plan can generate wealth while generating overall growth for the whole population, without overburdening one group or another, than it's a great plan. Otherwise, it's back to the drawing board.



Topic for next week: please share your ideas, post an economic model. Contribute.

Return to Message List