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Letter of the Day | Gov't policies will be tallest hurdle for Lee-Chin

Published:Monday | May 9, 2016 | 5:00 AM

THE EDITOR, Sir:

It is beyond a doubt that capitalism is the foundation of prosperity. The evidence lies in its power to defeat and preside over the demise of the two most 'vicious' socio-economic systems, fascism and communism. The free-market system, backed by innovation, risk and hard work, has piloted the economies of the Western world through some of the most difficult times.

From 2007 to 2009, the world experienced the Great Recession that was second to no other. Its adverse effects left the United States and other countries in financial ruin. Yet, in a matter of two years, America was on its way to recovery.

Jamaica has been slow in the recovery process, despite its introduction of so-called stimulus packages. The problem lies with government policies. These are the policies that Michael Lee-Chin, chairman of the Economic Growth Council, will have to work to dismantle before he can lead his team on the road to prosperity. The encumbrances are 'legislative' in nature. They also represent unfriendly laws that are hostile to the concept of laissez-faire.

Such legal impediments serve to destroy investor confidence, keep unemployment high, and cause persistent poverty.

There is optimism that legislative reform under the Andrew Holness administration will accelerate economic revitalisation and growth in the foreseeable future.

 

LOW INTEREST RATES

 

Currently, interest rates are at their lowest, fuel is cheap, the private sector is optimistic and its confidence is at an all-time high. This contributes to the optimism that a free market will deliver the prosperity for which we yearn.

Additional evidence that capitalism works is demonstrated by firms such as Cari-Med, a pharmaceutical distribution giant; Juici Patties; Tru-Juice; Sandals Resorts; and the GraceKennedy Group of companies.

These industries came into existence without governmental assistance. Each started out as a small business. Now they are providing jobs for hundreds of workers. Enterprises like these are to be credited for the higher standard of living enjoyed by their workers and making prosperity a reality.

GLEN GEORGE WILSON

Springfield, St Elizabeth