Granger’s description of wage increase reveals a misunderstanding of basic economics

ONCE again, David Granger, leader of the main opposition party, A Partnership for National Unity (APNU), has missed the bus, as is his custom on matters of the economy. In another of his now usual far-from-reality pronouncements, he describes the recently announced 5% pay increase to public servants as “worthless”.Observer, again, must remind Mr Granger that such a description, apart from being unfair, and prejudiced, reveals a misunderstanding of the dynamics of national development.
Does he understand that such increases in wages  are given, on the basis of the State’s economic performance, and not by pulling numbers out of a magician’s hat? That the nation’s workers can still receive such a dispensation is based on the competent management of Guyana’s fiscal affairs. The latter explains why there has been sustained economic growth for the seventh consecutive year, and that such a constant determines such an announced  benefit, in addition to projects such as the highly successful  housing programme that has continued to add to, and improve, the well-being of tens of thousands of Guyanese. It is in this context that such an increase has to be understood. Even his constituents, one is certain, understands this truism. How does he think that the nation has made such ground-breaking socio-economic strides, since 1993?
He must be reminded that none of the other CARICOM island states has been able to claim such a healthy economic state of affairs because of economies that have been severely  struck by, and are still suffering from, the effects of the global collapse some years ago. One only has to refer to Jamaica  that has to battle tooth and nail for a resuscitation and rescue package with the International Monetary Fund (IMF). Then there is Barbados with traditionally one of the best managed economies in the Region that has had to introduce cost-cutting measures to aid in the recovery of a badly struggling economy. For instance, the island’s government announced that it was no longer paying the tuition fees of students who seek tuition at the University of the West Indies. Such will now become the responsibility of the students.
Contrast this with our situation, where there have been no cuts to any of the nation’s social programmes. In fact, an examination of the important sectors of Education, Health, Housing and Water has evidenced exponential increases in their respective budgetary allocations, rather than reductions.
There will always be room for improvement in any such matter of wage increases; but given our current circumstances, it is laudable on the part of the government to be able to afford what it has offered.