I could have sworn your article said:
“For real GDP growth – a ‘rubber ball bounce’ – Bermuda needs real growth in ResPop; real growth in the workforce; A REAL INCREASE IN NET GOVERNMENT SPENDING IN BERMUDA; and a real and big ramp-up in overall consumer demand.”

but your clarifications read:
“Three things can push GDP up now. One – real growth in ResPop . Two – real growth in number of filled jobs. Three – real increase in consumer demand. These three will drive GDP up and I make that point very clearly.”

What a relief, as you and I both know that artificially boosting consumer demand by increasing Government spending is not the solution to reviving the economy, shedding our debt, and moving Bermuda forwards from the mess it is in. In fact, I’m glad we agree that:
“The admittedly nasty solution? Hold total GovSpen at a fixed level, cut costs, and do not increase tax rate uptake.”

Many of us think is is even necessary to reduce Government spending in drastic ways, such as trimming dead weight from the workforce. You and I both know that Corporate Bermuda has been trimming the fat for years, laying off those who didn’t pull their weight. That is how corporations survive, and that is how governments survive. I believe we are in agreement on this:
“Holding at that level means CUTTING COSTS [PARTICULARLY PERSONNEL] and trying to have minimal impact – certainly no drag – on the private sector’s efforts to ‘grow’ the economy by adding ResPop, adding jobs, and adding to consumer demand.”

However, you and I also both know that our beloved unions would rather riot and destroy our Island than trim the fat or pull their weight. Complex, I know. But that’s it in simplest terms.

peace.

george

Perhaps these further notes will help you.

Three things can push GDP up now. One – real growth in ResPop . Two – real growth in number of filled jobs. Three – real increase in consumer demand. These three will drive GDP up and I make that point very clearly.

Net GovSpen has been declining since 2010. That has been and will continue to be a drag or pull-down on GDP growth, thus acting against the push-up effect of the first three.

Right now, this administration is trying to manage by increasing its uptake from GDP – planning to go from taxes eating up 16% of GDP in 2013 to taxes eating up 18% of GDP in 2018. That tax rate increase is to enable GovSpen to stay where it is without cutting costs. That tax rate increase acts as a pull-down or drag on GDP growth.

The admittedly nasty solution? Hold total GovSpen at a fixed level, cut costs, and do not increase tax rate uptake.

The effect will be that net GovSpen and tax rate uptake stays at 16% of GDP and net GovSpen around $900m in overall GovSpen on Personnel, Operations, and Capital.

Total GovSpen would hold at [$900m GovRev plus Nanci at $190m = $1,090m].

Holding at that level means cutting costs [particularly Personnel] and trying to have minimal impact – certainly no drag – on the private sector’s efforts to ‘grow’ the economy by adding ResPop, adding jobs, and adding to consumer demand.

Complex, I know. But that’s it in simplest terms.

Bermuda needs a rubber ball bounce.

Larry.

that idiotic crap is what put this Island billions in debt in the first place.

not three weeks ago you were complaining that Govt. overspending has not improved.