The Labour Spokesman Editorial
This week we wish to alert you, the people of St Kitts and Nevis, to another economic danger very likely to pose a threat on a global level. Stagflation is that economic state of affairs arising from the combined effects of ‘stagnation’ and ‘inflation’ occurring simultaneously. The last time the world experienced that phenomenon was in the early 1970s, when the major oil-exporting countries of the Middle East severely reduced supplies to The US and other nations which supported Israel. Almost overnight the price of oil increased four-fold. Dr Hawkins and many other experts are of the opinion that, while the current situation is very challenging, matters may not become as severe as they were at the time of the first oil crisis, mainly because it may be possible to contain the inflationary factor.
The combined effects of COVID-19, an unanticipated strong rebound, the pronounced switch in demand from services to goods, setbacks in the global supply chain, and now the war in Europe appear to have combined to bring about continually increasing prices of oil, gas, food, fertilisers and other commodities — all leading to stagflation. Added to all of that is the fact that, as a direct consequence of COVID-19, there has been a marked decline in China’s labour productivity, which has resulted in the loss of one of the most important ‘boosts to global economic growth and restraint on global inflation.’ According to the Bank for International Settlements, “the long-term costs of doing nothing outweigh the short-term pain of bringing inflation under control.” They advocate that governments must do away with handouts or tax cuts to help people with cost-of-living pressures; assistance must be strictly targeted to those who most need it.
When Labour is returned to government, as indeed it must soon be, Dr Drew and his administration will be confronted by economic and financial problems of gigantic proportions, all engineered at the local level by the shenanigans and skulduggery of the First and Second fellow. But Labour has a sound history of dealing with such problems. In the early 1970s, with Mr Bradshaw as Premier and Mr Southwell as Finance Minister, St Kitts and Nevis not only weathered the storm, but achieved economic growth which made us the envy of the region. Such abilities are in our political and administrative DNA. We did it before, and we can — and will — do it again. But first, we MUST rid the country of the naked emperor and his underlings. When that day comes we MUST all go out and VOTE FOR THE HAND!