2 Hr Video: Craig Simmons Economics Lecture
Last night [Oct 2] Bermuda College Senior Economics Lecturer Craig Simmons spoke about Bermuda’s economy, delivering a lecture — “Our Economic Pie: When 10% is More Than 90%” -– which focused on Bermuda’s economic inequalities.
The lecture lasted for approximately two hours, with Mr. Simmons covering various aspects of the economy.
“We in Bermuda have focused on growing the economic pie, and we’ve done a damn good job. Our economic pie has grown by leaps and bounds,” said Mr. Simmons.
“Now you’re all going to say, ‘over the last couple of years.’ Well, yeah, over the last couple of years; what did you expect? The bubble burst – stuff happens. But over the long run, if you’re looking at the progress that has been made in Bermuda since the sixties, it’s miraculous what this island has become.
“And it has become that because we have focused almost exclusively on growing the economic pie, less on how the economic pie has been distributed. And all I’m saying is, just take a look at how the economic pie has been distributed.
“Maybe we might want to do things differently, if we want, 10 years from now, say 2024, if we want Bermuda to be different in 2024 and 2030, maybe we want to do things a little different today, so that our children and grandchildren inherit a society that isn’t as unequal.”
Slides shown by Mr Simmons last night, click to move to next slide:
2-hour video of Mr. Simmons lecture:
There was a great turnout last night but disappointingly the lecture was more about misinformation than information.
-Ideas on the redistribution of wealth by increasing taxes but he then didn’t discuss how this might affect the poor if the wealthy leave nor what happened to our economy when the payroll tax was increased
-Disagreed with cutting Government spending but there were no suggestion on how to pay for the budget deficit or payoff debt
-The shrinking of Bermuda’s economic pie and increased unemployment is because of the 2008 economic downturn but nothing about how the rest of the world has been doing better now nor any discussion about local policies which might have aggravated the situation
-The issue of debt and it’s impact on Bermuda’s current and future economic pie and redistribution of wealth was not addressed
-Use of the term new oligarchy without acknowledgement of how Bermuda current economic prospects are in some case worse now, because of our own making.
I have a lot of respect for Mr. Simmons and have had the pleasure of hearing him speak on numerous occasions however I feel Bermuda would be much better served if he were to give a more honest, balanced view of facts and our current reality.
You cannot multiply wealth by dividing it.
I was there as well and also noted how Mr. Simmons failed to address the $350mn budget deficit, the $2bn+ debt and $2bn underfunded pension plans. One would think as an economist he would address these dire issues before promoting greater Government spending.
Government finances are in the condition they are in because of excessive spending without matching the same increase in expenditure with a similar increase in revenue. The deifict began to grow prior to 2008 and not as a cause of 2008. Revenue actually has increased during the downturn, but nowhere near the amount expenses have grown.
Also, the fact that he failed to mention that the 2008 downturn only resulted in our major trading partners and similar structured/sized economies experiencing a year of negative GDP growth while BDA has recorded 6 consecutive years of GDP contraction also bothered me. Our economic position should almost mirror these jurisdictions and not experience a recession 6x longer!
And to encourage a corporate tax would only drive away the one sector that is keeping BDA afloat and doesn’t take into account the tax agreement put in place by former Premier Cox regarding these businesses.
He was very disappointing IMO in his analysis last night given all the pertinent facts that he seemed to omit from his presentation. Mr. Simmons has presented in my place of employment before and was always level in his analysis. However, last night was not the same Mr. Simmons and his analysis was anything but impartial.
I agree. And, in addition, much of his information was based on Thomas Piketty’s research — which has been called out for several factual errors and misleading statistics.
Picketty’s work is also totally inapplicable to city economies like ours where there’s no home country investing bias.
Persons in Bermuda want a “redistribution” all right. They want money for nothing so they can do nothing. Money should be for WORK….and the avg man has done well provided he actually worked. The avg man is now trying to get by in a bankrupted country…but that’s another talk show.
These negative comments sound like de people behind de mis-information pamphlets that where being given out after de meeting !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
the not de
It was not a meeting. It was an academic lecture, which is subject to review of sources and rebuttal. Mr. Simmons would be the first to agree with that.
The better comments here have offered specific points in their arguements, as they should.
Spefically, which aspects of the rebuttals do you take objection to Kunta?
Mr. Simmons,
It is all really very simple to explain to people:
Prices for real estate increased to the level that the average person could no longer participate. When homes cost 10 to 12 times average salaries that is too high.
International business with its wealth is largely responsible for that – they have the ability to bid up prices.
Banks are happy to lend money in order to allow people to chase prices because they know there is no bankruptcy protection in Bermuda.
Thank God for mark-to-market accounting – because the banks took their licks on the decline in the value of the collateral. Ask Gibbons in particular, but all of the banks.
What we need is lower interest rates which will act as a stimulate to the economy. The cost of credit in Bermuda is generally too high – credit cards and mortgage rates.
Until wages begin to rise or interest rates/cost decline Bermuda will be stuck in this position. There is no secret bullet.
People got greedy and took out mortgages on houses to then rent out.
When the rents dried up, they couldn’t afford the mortgage. because house prices dropped, they owed more than the house was worth.
Don’t blame international business, they never owned the properties. Blame opportunitsic and greedy Bermudians. Why did the numbers of renters leave???? Well you know where that blame sits.
I agree to an extent but wouldnt you say greedy landlords and property owners are to blame? IB didn’t ask us if they could pay us more money for rents or properties than we were asking for. We had the nerve to demand such high prices. They paid them, but only because we got greedy and demanded those prices. Our fault, not IB. FACT.
“Banks are happy to lend money because there is no bankruptcy protection in Bermuda”.
Shows how clueless you are.
Well stated but remember the truth is a bitch and I don’t think Bob Richards wants to call it such at this time without bringing the haters to the front now.
Shalom.
“Distributing the economic pie more equally” sounds an awful lot like taxation. If this is what Mr Simmons is recommending I hope he realises that this will inevitably mean that there will be a much smaller pie to distribute!
SO under the PLP the working man got less is what he is saying.
Very interesting way of putting things.
Well in all fairness when you subscribe to only one school of economic thought (in Mr. Simmons’ case that is Mr. Thomas Piketty et al) and refuse to include other views you will inevitably end up with a biased analysis such as the above.
5 of the 7 sources cited by Mr. Simmons were penned by Thomas Piketty.
I always enjoy hearing Mr Simmons’ opinions on various topics , some more than others.
But , as an educated man who doesn’t seem to have done too badly for himself the use of terms such as ‘distribution of the pie’ and ‘inequalities ‘ and ‘redistribution of wealth’ make me wonder how he might consider himself to be viewed by those who have less than him . And how he views people who he knows have much more than him and have worked hard and sacrificed to get where they are.
If the ‘have nots’ come a knocking on his door asking for his pie that he’s worked hard for will he be willing to just give it to them because they don’t have ?
Will he go a knocking on the door of the much wealthier asking for their pie that he has nothing to do with ?
What is it that Bob Stewart always say ? ‘Wealth isn’t distributed , it’s earned’
toodle-oo – what a fitting name for what a complete privileged moron you are!
lots of people who are wealthy did not work hard but have inherited wealth (obtained in both ethical and unethical ways) and there are lots of honest, hardworking people who are poor!
And what about people who started with nothing, worked hard, saved, sacrificed, and built up their own wealth? Imagine someone like that, in their 50′s. Are they supposed to start “distributing” their hard-earned assets to other people? Why?
Obviously the difference between you and I is that I was not brought up in a family who believed in any of this ‘entitlement’ nonsense.
It doesn’t matter how someone acquired what they have . We are not entitled to what is theirs simply because they have it and we don’t.
Just because you and facts don’t mix too well you ought to be careful who you call names.
If being unemployed for 3 years and struggling to make ends meet makes me ‘privileged’ then I’ve been mistaking what privilege is for a very long time .
Does the fact that I’m still not expecting people who have more than me to bail me out make me a moron ?
Ambition and ambition in action earns wealth. People who inherited who have no ambition in action lose wealth.
You have completely and utterly missed the point.
Exactly who has missed what point ? Maybe you’d like to make the point again so we won’t be barking up the wrong tree if we speak of entitlement or try to explain why there are haves and have nots.
There was definitely a whif of politics in the air as there was conveniently no mention of the fact that 1) 5K people have left the island 2) the civil service is unsustainable 3) it’s been 5 yrs since the world wide recession and our population is getting older and sicker and there’s nothing left to pay for them and as someone mentioned above, why did we get in such debt, what did we get in return for that debt and how do we pay it back?
Wealth is definitely distributed in an uneven fashion when the decks are stacked against the have nots in a deliberate and systemic fashion. No one is talking about knocking on someone’s door to take money to even out the wealth without working for it. It is the equal access to opportunity that many are shut away from that will greatly assist in closing the gap from the huge disparities in wealth distribution and inequalities that mostly affect a certain sector of society as has been always the case.
Bermudians have an incredible access to opportunity in Bermuda.they are here, you just got to do the work to take advantage and then do the work when you get there.
Education education education education for your whole life. Never stop education, even when working. that is when you up the difficulty level of education.
So why should someone who barely does the minimum requirement of the job get the same as someone who puts in extra time and effort? Especially when the person putting in the effort does not have higher education, and is a single mother, vs a single male with a university degree?
Two millionaires and a senior citizen sit around the table in a locked room playing cards , two million dollars and ten cents sits in the middle of the table, at the end of the evening,the pot remained the same.
Need me to tell you why their are no winners .
They were NOT ENTERPRISING to invite the fourth Millionaire.
Are going around in ever decreasing circles.
Mr.Simmons does not mention that the previous govt messed up Bermuda so the working class now have nothing. He does not mention how the cost overruns has resulted in a massive debt situation. He does not mention how The Civil Service was grown too big.He does not mention the numerous qualified audits( that means the Auditor General cannot figure put where the money went).
All he states is what is resonating around Bermuda that 10% have everything and 90% have nothing. Those in the 90%,get up off your butts and go and work for it.If you think the 10% are going to give it to you or the govt to waste!it will not happen?Those with the means will leave and Bermuda will become a dump.
Mr.Simmons appears to be running a political smear campaign when he should have been critical ( remember those 14yrs) he said nothing to discredit the PLP,now suddenly a social conscience has been born.
It always amaze me how emotionally charged people can get, when they hear the term “wealth redistribution” You all could not have been listening to the the same lecture that I just listened to. Your emotions have impaired your ability to get the message, to the point where you all have, totally blocked out everything he said, once he mentioned the forbidden term. He clearly is against whatever it is, you all think he stands for. His idea of wealth redistribution was opportunity, through education but you all were too emotionally charged to hear that. Highly emotionally charged people, are so impressionable, they are easily brainwashed into voting against their interest, they align themselves with political parties, they join religion, they are easily divided and conquered. So sad.
Yes, “so sad” but true
exactly, not to mention that when you allow emotions to influence your thinking, you basically kick objectivity and reason out the door. (so to speak) Some of us are so set on our own perceptions that we don’t want to even consider anything that may challenge that thinking..
Opportunity, through education.
Duh! Sadly many unionized workers don’t get the opportunities to show their capabilities. As “that is someone elses job”. The more down trodden they feel by no progress, the more influence on them the union has. Union stifles opportunity and career growth, it serves them well, after all THE UNION IS A BUSINESS.
If we follow Mr. Simmons we will get equality alright, we all will be equally broke!
In order for there to be rich there must be poor. Simple.
hurts to hear but true.. if you have a family and there is 10 people and 10 slices of pizza everyone is hungry. Daddy comes in and has 2 slices, mommy 2, and older brother 2, will it not be clear someone will go hungry or have to share?
now there are questions. Why did daddy take 2 slices, he may have an answer….I am the man….or I am the bread winner…but that does not change the reality.
there are a number of reason our economy has taken a bad turn, one major change was driven by the economic climate and others by miss-management. whatever the reason is, the underclass is growing, many are leaving and we must address it.
These are the times that try men’s soul.
Any father worth his salt would ensure his children eat first. the father that does per your example has his priorities messed up.
@Free Thinker. I agree. Say those two words and we hear all the stereotypical vitriol.
Over the last 50 years an unbelievable millions and millions of un earned dollars have found its way into our society and created a false economy.
” The chickens have come home to roost “.
All created by the “live today and pay tomorrow” mindset that destroys every nation who lives on credit.
UN-earned income having been redistributed to those who make a living from the backs of others,as the greedy are still not satisfied and never will be.
The streets are paved with gold , some are to lazy to pick it up.
Real money has been given or lent By Government services : 60 plus charities: Banks : B.H.C. Religious groups : Philanthropists: Private lenders: Insurance companies,and many more.
The Money is in the form of Mortgages : Loans : Hand outs : scams: un successful ventures ; bad investments; and robbery ; all with little or no hope of repatriation or repayment.
Millions of up paid debts have been Written off by lending institutions.
Don’t put your hands in another mans pocket.
It is a scary thought that this is what is being taught in Bda College!