Economist: Financial Salvation Is Never Going to Come from the Government

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NASSAU, BAHAMAS – Salvation for financial circumstances is never going to come from the government, according to Executive Director of the Government Public Policy Institute at the University of The Bahamas, Zhivargo Laing.

He was weighing in on how much of a difference the reduction on vat in food items from 10 to 5 percent will really make to Bahamians’ wallets.

Still, he says a measure that halves a governments taxation on a thing? 50 percent reduction is significant.

When it comes to the level of meaningful impact on consumers, Laing says two things will influence the level of savings.

One is the individual circumstances of each consumer.

As for the second factor?

“It also depends on whether storeowners do not introduce any cost increases that mitigate that reduction in the tax,” Laing said.

Here’s what the economist says is key to actually making a difference.

“The only thing that’s going to save us in terms of our financial circumstances is our own vigilance in managing what we spend vs what we earn, and seeking ways of earning from multiple streams for ourselves,” Laing said.

“What the government does can have an impact but to rely on that as a means to get ahead is really fools gold.”