Numerous decisions are made to protect society from
disasters. Whether natural or man-made, threatening lives or economic growth,
Governments must make decisions to preserve lifestyles. Wide ranging economic
decisions, bringing Government and Large operators together, will affect
investors, as to supporting entrepreneurs, in which sector or industry, and
licensing and regulating operators. Many other disasters, all with wide
economic impacts, will see negative effects on employment and Small and Medium
Enterprises (SMEs) owners. But the poor and other vulnerable persons in the
society do not get to have a say. Even as such disasters will send more into
poverty.
Government Decisions must restore peace and confidence.
Crises always emphasize failures in public services, calling for solutions,
which cost money. All economies run well on stability and predictability,
knowing how much, when, and where a nation’s Revenue is, in relation to its
budgeted expenditure. No Government’s budgeted forecast caters exclusively for
catastrophe. Although, some level of reserves or savings should be plan in
times of surpluses. Years of deficit budgeting, spending more than is earned,
will result in high borrowings, and in times of crisis, the need to reschedule
debt, utilize disaster insurance, free money and devalue the currency.
Large and Medium Operations are often consulted due
to the money in Politics. Such monies contributed to election campaigns or used
to purchase influence. The Chambers of Commerce will have its say. As the
largest contributors to National Tax Revenues, they will be asked, as to the
effects of any strategy. Such operations are profit driven and as such will
need Government funding or bail outs, to remain open or rebuild, from the damage
caused by a crisis. Their view of any disaster is not the loss of life, it is
declining earnings and would be quick to dismiss workers and close operations
rather than suffer any financial losses.
Employees and SMEs operations form the largest voting
groups. Hence, Politicians, in or out of power, will plead to win their
support. This grouping will be heard via unions, protests, insurrections or at
the ballot box. Complaining of not being consulted and in disagreement with
every decision. All Politicians will promise to bring their representatives to
the table and listen to their concerns. Quickly, realizing each other’s
self-serving agenda. Backroom deals will quiet objections in the short-term.
While, increasing poverty by kicking some workers off the bus and on to
unemployment lines.
There will always be a Wealth Gap. During, in and
after a crisis, Poverty will increase, as many in the so-called Middle Class
are negatively affected. Solutions from the Government will always address
Politics first. Stabilize the economy, by cutting social spending and letting
the currency find its natural bottom. Solutions from the Chambers, which under
normal conditions contribute to Non-Governmental Organizations (NGOs), to
support poverty eradication programs, will unsurprisingly be cut. “Bottom up
solutions” is a term used by many to engage and rally the poor. But solutions
are well-known; living wage jobs, affordable housing, continuous training, access
to healthcare and low crime rates, together, will reduce poverty.
Rationale
T.A.J &
Associates Company Limited uses this occasion
to comment on topics that have been covered, both academically and by the
mainstream media, to add its opinion and point out investment opportunities,
not to invoke any social action.
