Nipate
Forum => Kenya Discussion => Topic started by: RV Pundit on November 28, 2020, 11:49:55 PM
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He says high tax rate in Africa mean nothing get built.
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I like this comment though...
The Laffer Curve is a VERY real economic phenomena. At 0% taxes the government gets zero revenues. That makes sense. At 100% tax rate the government ALSO basically gets zero revenues as people will completely substitute out of labor for which they pay taxes. The SHAPE of that curve is complicated and tax economists put basically their entire careers in trying to figure out what the local maxima of a given tax curve is. There are times where decreasing taxes can increase revenue and there are times where lowering taxes will reduce revenue. One response is intuitive. The other isn't necessarily as intuitive but it doesn't mean its not true.
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Old economist get it all wrong. The purpose government tax is not to achieve revenue collection. It's basically a way for government to measure the pulse of the economy (like water meter) and throttle some sectors when necessary (e.g. cigarettes), control inflation etc.
Tax reduce unmeasured economic activity (lack of tax compliance) and make sure money printing counterbalance economic activity.
Majority of gov spending comes from money printing and duties delegated to commercial bank to lend to tom dick and Harry!
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It would be so easy if gov was just ordering money to be printed :) Gov is financed through taxes. The debate is what rate of tax is acceptable. Do we go Nigeria kind of low taxes - zero gov infrastructure - or do we go for scandavian model - high taxes - high gov expenditure.
Then again what do you tax? Some sectors like Agriculture are hard to tax? Informal economies like in Africa even harder to tax? so you're left with a small formal sector that you have to tax to almost death.
Well you could have exclusive tax free zones - EPZ - geared exclusively for export - where global companies and enjoy the best and almost free everything - if they can provide employment to people - but then again - they will want slavish no-union labour like Ethiopia where companies pay 20 dollars a month.
It's not easy.
For me I would tax the current generation as much as possible - and borrow (to be repaid by the future generation) as much as possible - fix the infrastructure deficit - then everything will sort itself. Ultimately once you have fixed the brick and mortar issue - the hardware - software issues are easy to fix.
There has to be some sacrifices - made by current and incoming generation - for the future generations to really transition into better world.
Old economist get it all wrong. The purpose government tax is not to achieve revenue collection. It's basically a way for government to measure the pulse of the economy (like water meter) and throttle some sectors when necessary (e.g. cigarettes), control inflation etc.
Majority of gov spending comes from money printing and duties delegated to commercial bank to lend to tom dick and Harry!
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He says high tax rate in Africa mean nothing get built.
I agree with his sentiments about high taxation. The high taxation is the reason why we have large dominant informal or grey markets. The bigger problem in Africa in general is economic freedom. Regulations, bureaucracies and high taxation have constrained and stunted economic growth in Africa. The freer an economy the more developed it is e.g Mauritius.
Laffer curve is real, after KRA slashed real estate income tax from 30% to 10% of gross, collection more than tripled. This clearly shows lowering, simplifying and broadening tax base is what's needed.
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For me I would tax the current generation as much as possible - and borrow (to be repaid by the future generation) as much as possible - fix the infrastructure deficit - then everything will sort itself. Ultimately once you have fixed the brick and mortar issue - the hardware - software issues are easy to fix.
There has to be some sacrifices - made by current and incoming generation - for the future generations to really transition into better world.
Remind me again why the are no great Kale businessmen and why Moi's 24 year rule ran this country's economy to the ground, destroyed its parastatals and hobbled its potential for a generation. You are an economically illiterate bunch, no GEMA would call for maximum taxation because they understand economics. They are involved in biachara, you can't run a small kiosk to save your life and you want to set the economic course for this country, fanciful. Only those tribes who have demonstrated their ability to run businesses should be made Finance ministers and treasury heads, we should have had a Muhindi one long time ago. Taxes should be low, broad based and predictable. Look what happened to Greece when the Troika ordered it to jack up its taxes to cover its debts, it brought the economy to a standstill. Laffer curve is real. Borrow and spend is not a viable road to prosperity.
Countries like Kenya where the informal sector dominates need Goods and Services Taxes (GST), it is good at capturing a vast swath of the population, is self policing, removes cascading effect of taxes, reduces barriers for business and eliminates tax evasion.
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That rich coming from a Luo lady. I think in business you rank lower than Kalenjin. Really get over the tribal nonsense. It always soil the important points you try to make.
For me I would tax the current generation as much as possible - and borrow (to be repaid by the future generation) as much as possible - fix the infrastructure deficit - then everything will sort itself. Ultimately once you have fixed the brick and mortar issue - the hardware - software issues are easy to fix.
There has to be some sacrifices - made by current and incoming generation - for the future generations to really transition into better world.
Remind me again why the are no great Kale businessmen and why Moi's 24 year rule ran this country's economy to the ground, destroyed its parastatals and hobbled its potential for a generation. You are an economically illiterate bunch, no GEMA would call for maximum taxation because they understand economics. They are involved in biachara, you can't run a small kiosk to save your life and you want to set the economic course for this country, fanciful. Only those tribes who have demonstrated their ability to run businesses should be made Finance ministers and treasury heads, we should have had a Muhindi one long time ago. Taxes should be low, broad based and predictable. Look what happened to Greece when the Troika ordered it to jack up its taxes to cover its debts, it brought the economy to a standstill. Laffer curve is real. Borrow and spend is not a viable road to prosperity.
Countries like Kenya where the informal sector dominates need Goods and Services Taxes (GST), it is good at capturing a vast swath of the population, is self policing, removes cascading effect of taxes, reduces barriers for business and eliminates tax evasion.
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I have lived in Switzerland. Taxes are high. The labour crazy. Everything pretty expensive. Yet you'll find billion dollar manufacturing conglomerate call it home. Suise is such a small country - yet out of global 500 - 15 are based in Switzerland. Not just in banking but mostly in manufacturing. Led by likes of Nestles.
The same is true in Germany - and most of Scandinavian - their manufacturing is topnotch - yet the taxes are high - electricity the world highest at 35 cents usd - labour expensive - but yet Chinese or American manufacturers cannot compete with them.
I think it's not about being cheap. It's about predictability. It about stability. Business are able to factor high taxes, high labour, high electricity and all that - into their plans. What kills business and investment is unpredictability - this year taxes are zero - next year it's 50% - like our parliament does annually - almost like drunken sailor. The harder it is to predict - the future - the harder it is to invest, plan and whole shebang - and more risky it is to sink capital, to train staff, to buy machines and increase production - it become easy to become a merchant for chinese manufacturers.
Whatever African do - it must try to become a predictable and stable macro-economic environment - that mean tax regime - even if it's high - that almost never changes.
Like everything - there are trade-offs - high taxes - lead to higher social and infrastructure investment - leading to lower poverty and more social welfare - but lower taxes can lead to a few capitalist getting richer - than rest of country - like Brazil and South Africa - or close home Nigeria - leading to thriving business class - in midst of poverty.
But business are able to factor those trade-offs - just assure them - they won't be swinging left and right - every year.
People should never have to tune in every year to listen to BUDGET speeches - it should always be known - that tax will always be 18% VAT - 30% - corporate.
I agree with his sentiments about high taxation. The high taxation is the reason why we have large dominant informal or grey markets. The bigger problem in Africa in general is economic freedom. Regulations, bureaucracies and high taxation have constrained and stunted economic growth in Africa. The freer an economy the more developed it is e.g Mauritius.
Laffer curve is real, after KRA slashed real estate income tax from 30% to 10% of gross, collection more than tripled. This clearly shows lowering, simplifying and broadening tax base is what's needed.
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That rich coming from a Luo lady. I think in business you rank lower than Kalenjin. Really get over the tribal nonsense. It always soil the important points you try to make.
You wish I was.
Sometimes Kenyans only understand things in tribal stereotypes, so I have to throw that in your face once in a while when you write howlers like that :D Eti maximum borrowing, gai!
Economic facts/reality don't change either at personal or government level; prudence & discipline are bywords to live by. There is a reason Deutschland escaped the European financial crisis unscathed, that whole society internalized the wickedness of deficits, debts and financial recklessness. It is a beautiful place to be a finance minister who believes in fiscal discipline because the state and society buy into it already. In most of the world, you are going against the tide.
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So your tribal background give credence to your little points. They cannot stand on their own?
I think you did engineering but did not quite understand the power of a lever.
Nobody get rich by saving. The current germans are not growing richer than the previous generation. They are maintaining that life style. You get rich by investing. Chinese are getting rich. Germans are maintaining their richness - they are not becoming super-rich.
Now Africans if we were to adopt fiscal discipline and conservative policies...we will remain stuck in poverty. If you earn 10 bob and save 2bob..it unlikely to amount to much after 10yrs. Once you invest that money - it start to grow.
This is where borrowing from the future (leveraging) come in - and this is where sacrifices from current generations - to save future generation - come in. Ultimately our current generation will not grow rich, will not defeat poverty and the works. We have to work hard for next generation - and we have to build basic infrastructure - we have to pour cements and steel - and when they will come - they will be dealing with soft issues.
Germany is great because Hilter made them really work their butt in 10-15 years. They were forced to build roads, to dig canals, and name it. That infrastructure still exists - it just need a little greasing and oiling (maintenance) once in a while.
Kenya if it choose the fiscal discipline route will never amount to anything. Kenya need to MASSIVELY invest in basic infrastructure and social infrastructure - that naturally mean high taxes to build roads, to provide free education, and whole of it. Everywhere you see - should be a huge excavation site - the caterpillars should be everywhere - digging up and down. This will not pay off now...it will mean we are ever broke...but in the future...it will pay off...it's a LEVER to the future.
You wish I was.
Sometimes Kenyans only understand things in tribal stereotypes, so I have to throw that in your face once in a while when you write howlers like that :D Eti maximum borrowing, gai!
Economic facts/reality don't change either at personal or government level; prudence & discipline are bywords to live by. There is a reason Deutschland escaped the European financial crisis unscathed, that whole society internalized the wickedness of deficits, debts and financial recklessness. It is a beautiful place to be a finance minister who believes in fiscal discipline because the state and society buy into it already. In most of the world, you are going against the tide.
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I have lived in Switzerland. Taxes are high. The labour crazy. Everything pretty expensive. Yet you'll find billion dollar manufacturing conglomerate call it home. Suise is such a small country - yet out of global 500 - 15 are based in Switzerland. Not just in banking but mostly in manufacturing. Led by likes of Nestles.
The same is true in Germany - and most of Scandinavian - their manufacturing is topnotch - yet the taxes are high - electricity the world highest at 35 cents usd - labour expensive - but yet Chinese or American manufacturers cannot compete with them.
Switzerland has a debt brake. A modest sized government. Fiscal independence also means some cantons have ultra low taxes such as Zug are inundated with investment. It is always the little details.
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Why would they incur debt yet it a developed nation? Show us non resource dependent developing nation that is growing without debt or high taxes. Most of heavy debt items are to build heavy infrastructure projects - Swiss already did that.
Switzerland has a debt brake. A modest sized government. Fiscal independence also means some cantons have ultra low taxes such as Zug are inundated with investment. It is always the little details.
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Nobody get rich by saving. The current germans are not growing richer than the previous generation. They are maintaining that life style. You get rich by investing. Chinese are getting rich. Germans are maintaining their richness - they are not becoming super-rich.
The first part is obviously not true, I will address it later.
Germans themselves will tell you they don't want to be rich :D They are not flashy and ostentatious like the Chinese or Americans. German billionaires are obscure, they blend in with their population not trying to rock the boat buying huge tracts of land and what not, jacking up prices with their overspending. Look at the owner of Aldi for example. Germany's whole economic system is built for stability, they favor slow but sure growth. German SME avoid bank debts, instead they reinvest their profits, they own their assets. Moreover, most Mittelstand make sure they don't over rely on one customer so they limit them to just 10% of orders. Very sensible people.
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So Kenyan should maintain it's poverty by doing the same? Once you're rich - you have all the life comforts - you get into marginal economic return - however much you work hard - however much money you make - it won't change your life - and that is what all developed nations are. They are just there - everything works - nobody really has to invest and go crazy! - not people - not gov - not companies.
But developing nations are in a different stage.
Nobody get rich by saving. The current germans are not growing richer than the previous generation. They are maintaining that life style. You get rich by investing. Chinese are getting rich. Germans are maintaining their richness - they are not becoming super-rich.
The first part is obviously not true, I will address it later.
Germans themselves will tell you they don't want to be rich :D They are not flashy and ostentatious like the Chinese or Americans. German billionaires are obscure, they blend in with their population not trying to rock the boat buying huge tracts of land and what not, jacking up prices with their overspending. Look at the owner of Aldi for example. Germany's whole economic system is built for stability, they favor slow but sure growth. German SME avoid bank debts, instead they reinvest their profits, they own their assets. Moreover, most Mittelstand make sure they don't over rely on one customer so they limit them to just 10% of orders. Very sensible people.
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Why would they incur debt yet it a developed nation? Show us non resource dependent developing nation that is growing without debt or high taxes. Most of heavy debt items are to build heavy infrastructure projects - Swiss already did that.
Governments everywhere are irresponsible. Politicians want to be elected so they promise goodies to the public - free healthcare, free pension, free schooling, free this and that can only be done via deficit spending or debts. Look at America and the UK, up to their eyeballs in debt.
Let us look at the example of Singapore, Pundit. Here is a veritable model for low income countries not blessed with resources.
1. The first element is stable money. Singapore started with a currency board system — a simple, transparent, rule‐driven monetary regime. Currency boards operate on autopilot, with automatic adjustments keeping the system in balance. Currency boards deliver discipline to the spheres of money, banking, and fiscal affairs. Currency board provide stable prices and free convertibility to hard currencies. This establishes confidence and attracts foreign investment. No stability = No economic prosperity
2. The second element was that Lee Kuan Yew ruled out passing the begging bowl. Singapore refused to accept foreign aid of any kind. This is a far cry from many developing countries, where, when you pick up the paper, all you see are politicians and bureaucrats trying to secure foreign aid from someone, be it an NGO, a foreign government, or an international financial institution, like the World Bank. By contrast, signs reading “no foreign aid” were hung figuratively outside every government office in Singapore. We are champions at begging.
3. The third element was that Singapore strived to have first‐world, competitive private enterprises. This was accomplished via light taxation and light regulation, coupled with completely open and free trade — in short, policies that enabled Singapore to become one of the Asian Tigers.
4. The fourth element in the Singapore Strategy was an emphasis on personal security, public order, and the protection of private property.
5. The fifth, and final, element in the Singapore Strategy was a “small,” transparent government — a minimalist government that avoided complexity and “red tape”.
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Most importantly Singapore - a city country - sit on straits of mallacca - that joins Indian and Pacific ocean - and for that geographical reason - huge part of shipping lines must pass Singapore - to save money and time - and that is what port city country of Singapore milks.
Get us a large country that did not win a natural resource jackpot like sitting on the strait of mallacca.
Why would they incur debt yet it a developed nation? Show us non resource dependent developing nation that is growing without debt or high taxes. Most of heavy debt items are to build heavy infrastructure projects - Swiss already did that.
Governments everywhere are irresponsible. Politicians want to be elected so they promise goodies to the public - free healthcare, free pension, free schooling, free this and that can only be done via deficit spending or debts. Look at America and the UK, up to their eyeballs in debt.
Let us look at the example of Singapore, Pundit. Here is a veritable model for low income countries not blessed with resources.
1. The first element is stable money. Singapore started with a currency board system — a simple, transparent, rule‐driven monetary regime. Currency boards operate on autopilot, with automatic adjustments keeping the system in balance. Currency boards deliver discipline to the spheres of money, banking, and fiscal affairs. Currency board provide stable prices and free convertibility to hard currencies. This establishes confidence and attracts foreign investment. No stability = No economic prosperity
2. The second element was that Lee Kuan Yew ruled out passing the begging bowl. Singapore refused to accept foreign aid of any kind. This is a far cry from many developing countries, where, when you pick up the paper, all you see are politicians and bureaucrats trying to secure foreign aid from someone, be it an NGO, a foreign government, or an international financial institution, like the World Bank. By contrast, signs reading “no foreign aid” were hung figuratively outside every government office in Singapore. We are champions at begging.
3. The third element was that Singapore strived to have first‐world, competitive private enterprises. This was accomplished via light taxation and light regulation, coupled with completely open and free trade — in short, policies that enabled Singapore to become one of the Asian Tigers.
4. The fourth element in the Singapore Strategy was an emphasis on personal security, public order, and the protection of private property.
5. The fifth, and final, element in the Singapore Strategy was a “small,” transparent government — a minimalist government that avoided complexity and “red tape”.
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So Kenyan should maintain it's poverty by doing the same? Once you're rich - you have all the life comforts - you get into marginal economic return - however much you work hard - however much money you make - it won't change your life - and that is what all developed nations are. They are just there - everything works - nobody really has to invest and go crazy! - not people - not gov - not companies.
But developing nations are in a different stage.
We don't have to make it complicated, there is no stage of development that makes it right/safe to gamble on a country's solvency by engaging in reckless borrowing to finance infrastructure. Even the US that whose dollar is the reserve currency for the world can't get away with it.
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Most importantly Singapore - a city country - sit on straits of mallacca - that joins Indian and Pacific ocean - and for that geographical reason - huge part of shipping lines must pass Singapore - to save money and time - and that is what port city country of Singapore milks.
Get us a large country that did not win a natural resource jackpot like sitting on the strait of mallacca.
Nope. Try again.
Singapore's main exports, particularly in electronics, chemicals and services including Singapore's position as the regional hub for wealth management provide the main source of revenue for the economy.
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No risk. No return.
We don't have to make it complicated, there is no stage of development that makes it right/safe to gamble on a country's solvency by engaging in reckless borrowing to finance infrastructure. Even the US that whose dollar is the reserve currency for the world can't get away with it.
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Dubai does even better and yet it started as Oil producer. That is their lever.
Nope. Try again.
Singapore's main exports, particularly in electronics, chemicals and services including Singapore's position as the regional hub for wealth management provide the main source of revenue for the economy.
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No risk. No return.
This is the risk that awaits you.
Zambia has become the first African country to default on its debts since the pandemic, leading to fears that a “debt tsunami” could engulf the continent’s most heavily indebted nations as the financial impact of coronavirus hits.
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I am sure there are many countries, individuals, companies that have leveraged to grow rich. That is whole point of banking and financial markets.
This is the risk that awaits you.
Zambia has become the first African country to default on its debts since the pandemic, leading to fears that a “debt tsunami” could engulf the continent’s most heavily indebted nations as the financial impact of coronavirus hits.
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I am sure there are many countries, individuals, companies that have leveraged to grow rich. That is whole point of banking and financial markets.
There is not a single case. :D
Ponzi scheme Anglo Saxon style economics doesn't work. Financialization, real estate speculation and stock markets gambles eventually catches up with you.
You have to make things that people want, quality stuff that makes peoples lives better, that rules out Chinese made trinkets and junk. We are talking of products made by craftsmen who love their trade hello Japan and Germany.
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Okay - quite some queer life views; you must a real nutjob.
There is not a single case. :D
Ponzi scheme Anglo Saxon style economics doesn't work. Financialization, real estate speculation and stock markets gambles eventually catches up with you.
You have to make things that people want, quality stuff that makes peoples lives better, that rules out Chinese made trinkets and junk. We are talking of products made by craftsmen who love their trade hello Japan and Germany.
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Okay - quite some queer life views; you must a real nutjob.
Instead of insulting me be thankful for the free darasas I'm giving you in economics. I might be a bit harsh but I need to disabuse you of failed tax and spend paradigms. They failed everywhere just like communism.
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Without borrowing - I doubt anybody can get their way out of poverty - it will take longer time and incredible discipline otherwise.
I have seen really poor families get out poverty - by being given credit on basic things like fertilizers.
This is why access to credit is very important for individuals, for companies, for nations.
The germany you speak about - were saved by US loaning them money to rebuild their completely destroyed countries under Marshall Plan.
Yes many abuse credit - thinking it's free money - and make their situations even worse. But many who are disciplined - borrow the loan - invest - when they harvest - they pay off their debt - and still have a lot more.
Countries should borrow and borrow - and invest and invest - esp in long term infrastructure. There is nothing more proven as sucess model than that.
Instead of insulting me be thankful for the free darasas I'm giving you in economics. I might be a bit harsh but I need to disabuse you of failed tax and spend paradigms. They failed everywhere just like communism.
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Without borrowing - I doubt anybody can get their way out of poverty - it will take longer time and incredible discipline otherwise.
I have seen really poor families get out poverty - by being given credit on basic things like fertilizers.
This is why access to credit is very important for individuals, for companies, for nations.
The germany you speak about - were saved by US loaning them money to rebuild their completely destroyed countries under Marshall Plan.
I will give you a history of Germany in another thread you don't know nothing about it. Marshall fund is not what made Germany what it is. Hitler was not the reason for their rise. You incredibly misinformed
I told you before, you have never started your own business. All Muhindis started their businesses without borrowing, Somalis don't use banks. Most GEMA don't either, successful small business owners use their own capital.
Countries should borrow and borrow - and invest and invest - esp in long term infrastructure. There is nothing more proven as sucess model than that.
All the countries that borrowed heavily are paying the consequences one by one, Ethiopia, Kenya, Zambia you name it. You know that obviously. I can sense your troll.
Economics is not BBI you argue with Robina endlessly, its not subjective. Don't come sulking here when I educate you.
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Nyar Kisumo. You seem to romantize business and life because all your life you've lived in a bubble; shielded from reality; I can easily tell you story; Out of Xavier; to some high school; to California; to employment; and that is pretty it. Now at 45yrs - childless and completely at loss.
My life is bit different; during school holidays; I use to run my father shop; I was very honest; and so my father really liked to have me in there; I would keep clean records; and obviously by day one; I realize there are customers you just have to loan them items; so I found a credit book and continued; my favourite was mzee; who was habitual drunk and smoker; but he paid; he'd borrow items; and pay within the weeks; character or customer behavior there is important; I must say eventually my father gave up - because except for me - my brothers and shop keeper he hired - were no good. That was my first lesson in business - it was maybe 1989-1990 - we sold - Tarino, 7Ups and many stuff I don't remember - cigarettes and sugar - were the top selling items. My only vice then was to gorge myself in sweets :). I did this until I was 12yrs.My 2nd business was in high school - this was camera business - I had been expelled and go into local school with my elder bro - we bought a camera - and did some brisk business - that ensure we had constant supply of bread - as long as the film didn't burn.
My 3rd business experience was after high school - my bro started small hotel in our local shopping center - in my fathers old shop - and because he had to go to college one year earlier - he went to Mombasa Poly - as we waited for 2 yrs to join UON - so I inherited this hotel business. Day one - was rough - as soon as I opened - I used 250shs to buy wheat flour and etc - I received a visit from a woman who use to supply milk and butcher - each owned my brother about 500 shs - I had no such money. My re-starting capital was 250 :). So I devise a plan to pay them 1,000 - and I did. I run that hotel for 1yr until I joined UON - from 250 starting capital - I had turned it become a very popular hotel - and got me lots of girls :). My chief chef :) was a half deaf guy - but he had crazy cooking skills and other talents - and was just fun to be around.
Actually that is my 4th - coz 1yr before that - I was running my cousin video shop - I use to show movies - in tapes of Van dame - Chakie Jan - name them - those vietnam/cambodia war...with a small 15 minute break to play Lingala..Awilo Logomomba/Kofi were biggest star...I would go to Kericho town every tuesday to pick new movies and videos. In midnight - I would screen PORN :) :). That was crazy - some APs would come but would also enjoy the show :). The video shop was btw a bar and shop...in bar the same APs would fight with local boy over girls and the shop-woman had a taxi guy - and they would engage in loud sex :). it was crazy. And I would also blast porn - for premium view - 15bob a session :). The highlight was I was cooking for myself in a little stove - fried beef - and I had a bicyle to go home - was about 20kms away.
Then I joined UON - 1st year - I got into mini-depression with UON - and just got myself drunk - 2nd year I tried farming - I did tree seedling - I badly wanted to bu computer - it was 60k - and I had missed HELB for lying my father was a farmer :). I planted 15K seedling - tea seedling - took me 4 months - back breaking labour - I think about 10K survived - sold each for 5bob - my father paid me 50k - lots of money - we went to Mitsubimi computer in parkland - got myself a computer for 45k - and a printer for 5k.
Now I was in big printing business :) - I use to print assignments - retain a copy and basically change the name :) - and submit :) University became so booring - because I didn't have to study. I just waited for print spool to get me all the assignment I needed. Toner management was something else but Kijabe street was just across UON and I had found guys who injected tonner with a syringe :)
I started looking for jobs - got employed as 3rd yr and worked until graduation - got into UN gigiri - 2yrs later quit - and formed a start up with some bazungu. That start up now is playing big league. I was 24yrs then.
That was 15yrs ago - i have done so many business and shiet. Some of us sleep for few hours every day.
So I hear you nonsense and just laugh.
Without borrowing - I doubt anybody can get their way out of poverty - it will take longer time and incredible discipline otherwise.
I have seen really poor families get out poverty - by being given credit on basic things like fertilizers.
This is why access to credit is very important for individuals, for companies, for nations.
The germany you speak about - were saved by US loaning them money to rebuild their completely destroyed countries under Marshall Plan.
I will give you a history of Germany in another thread you don't know nothing about it. Marshall fund is not what made Germany what it is. Hitler was not the reason for their rise. You incredibly misinformed
I told you before, you have never started your own business. All Muhindis started their businesses without borrowing, Somalis don't use banks. Most GEMA don't either, successful small business owners use their own capital.
Countries should borrow and borrow - and invest and invest - esp in long term infrastructure. There is nothing more proven as sucess model than that.
All the countries that borrowed heavily are paying the consequences one by one, Ethiopia, Kenya, Zambia you name it. You know that obviously. I can sense your troll.
Economics is not BBI you argue with Robina endlessly, its not subjective. Don't come sulking here when I educate you
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Nyar Kisumo. You seem to romantize business and life because all your life you've lived in a bubble; shielded from reality; I can easily tell you story; Out of Xavier; to some high school; to California; to employment; and that is pretty it. Now at 45yrs - childless and completely at loss.
My life is bit different; during school holidays; I use to run my father shop; I was very honest; and so my father really liked to have me in there; I would keep clean records; and obviously by day one; I realize there are customers you just have to loan them items; so I found a credit book and continued; my favourite was mzee; who was habitual drunk and smoker; but he paid; he'd borrow items; and pay within the weeks; character or customer behavior there is important; I must say eventually my father gave up - because except for me - my brothers and shop keeper he hired - were no good. That was my first lesson in business - it was maybe 1989-1990 - we sold - Tarino, 7Ups and many stuff I don't remember - cigarettes and sugar - were the top selling items. My only vice then was to gorge myself in sweets :). I did this until I was 12yrs.My 2nd business was in high school - this was camera business - I had been expelled and go into local school with my elder bro - we bought a camera - and did some brisk business - that ensure we had constant supply of bread - as long as the film didn't burn.
My 3rd business experience was after high school - my bro started small hotel in our local shopping center - in my fathers old shop - and because he had to go to college one year earlier - he went to Mombasa Poly - as we waited for 2 yrs to join UON - so I inherited this hotel business. Day one - was rough - as soon as I opened - I used 250shs to buy wheat flour and etc - I received a visit from a woman who use to supply milk and butcher - each owned my brother about 500 shs - I had no such money. My re-starting capital was 250 :). So I devise a plan to pay them 1,000 - and I did. I run that hotel for 1yr until I joined UON - from 250 starting capital - I had turned it become a very popular hotel - and got me lots of girls :). My chief chef :) was a half deaf guy - but he had crazy cooking skills and other talents - and was just fun to be around.
Actually that is my 4th - coz 1yr before that - I was running my cousin video shop - I use to show movies - in tapes of Van dame - Chakie Jan - name them - those vietnam/cambodia war...with a small 15 minute break to play Lingala..Awilo Logomomba/Kofi were biggest star...I would go to Kericho town every tuesday to pick new movies and videos. In midnight - I would screen PORN :) :). That was crazy - some APs would come but would also enjoy the show :). The video shop was btw a bar and shop...in bar the same APs would fight with local boy over girls and the shop-woman had a taxi guy - and they would engage in loud sex :). it was crazy. And I would also blast porn - for premium view - 15bob a session :). The highlight was I was cooking for myself in a little stove - fried beef - and I had a bicyle to go home - was about 20kms away.
Then I joined UON - 1st year - I got into mini-depression with UON - and just got myself drunk - 2nd year I tried farming - I did tree seedling - I badly wanted to bu computer - it was 60k - and I had missed HELB for lying my father was a farmer :). I planted 15K seedling - tea seedling - took me 4 months - back breaking labour - I think about 10K survived - sold each for 5bob - my father paid me 50k - lots of money - we went to Mitsubimi computer in parkland - got myself a computer for 45k - and a printer for 5k.
Now I was in big printing business :) - I use to print assignments - retain a copy and basically change the name :) - and submit :) University became so booring - because I didn't have to study. I just waited for print spool to get me all the assignment I needed. Toner management was something else but Kijabe street was just across UON and I had found guys who injected tonner with a syringe :)
I started looking for jobs - got employed as 3rd yr and worked until graduation - got into UN gigiri - 2yrs later quit - and formed a start up with some bazungu. That start up now is playing big league. I was 24yrs then.
That was 15yrs ago - i have done so many business and shiet. Some of us sleep for few hours every day.
So I hear you nonsense and just laugh.
Don't do that. I always get my 8 hours of sleep come what. Anyways it is all banter don't take it personal
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Without borrowing - I doubt anybody can get their way out of poverty - it will take longer time and incredible discipline otherwise.
I have seen really poor families get out poverty - by being given credit on basic things like fertilizers.
This is why access to credit is very important for individuals, for companies, for nations.
The germany you speak about - were saved by US loaning them money to rebuild their completely destroyed countries under Marshall Plan.
I will give you a history of Germany in another thread you don't know nothing about it. Marshall fund is not what made Germany what it is. Hitler was not the reason for their rise. You incredibly misinformed
I told you before, you have never started your own business. All Muhindis started their businesses without borrowing, Somalis don't use banks. Most GEMA don't either, successful small business owners use their own capital.
Countries should borrow and borrow - and invest and invest - esp in long term infrastructure. There is nothing more proven as sucess model than that.
All the countries that borrowed heavily are paying the consequences one by one, Ethiopia, Kenya, Zambia you name it. You know that obviously. I can sense your troll.
Economics is not BBI you argue with Robina endlessly, its not subjective. Don't come sulking here when I educate you.
RV Pundit is an A in poltics , A- in history and an E in economics
Matters economics just ignore him.
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What is so difficult about Economics?
RV Pundit is an A in poltics , A- in history and an E in economics
Matters economics just ignore him.
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What is so difficult about Economics?
RV Pundit is an A in poltics , A- in history and an E in economics
Matters economics just ignore him.
You dont have the niche to understand it , thats all. One might be know it all but its obvious that its not your field and this is in good faith dont take it personal
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Niche to understand - what kind of nonsense are you peddling?
You dont have the niche to understand it , thats all. One might be know it all but its obvious that its not your field and this is in good faith dont take it personal
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Niche to understand - what kind of nonsense are you peddling?
You dont have the niche to understand it , thats all. One might be know it all but its obvious that its not your field and this is in good faith dont take it personal
Just same way Jordan was good in basketball but not baseball, Just same way Lewis Hamilton is good in Formula one but not good in football.
Its humanly impossible to be good in everything
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Of course. Don't be terrified. There are things I know zero about like cosmology. But economics is easy. I did BED in primary, commerce, then did Accounting and scored an A - so I can count beans like KenyaPlato - I can pass CPA with one eye closed - heck I have built accounting based system with 'double journal entry' principle etc; then did common economic and development units - I have studied statistics, probability, algebra - common units - then after I spent six years building statistical systems. I was reading economic books while in high school! Explain to me what is so difficult in economic or any social science? I have worked with a phd from Oxford in Economics - for many year as co-founder. I have worked with World Bank economists - to analyze poverty in kenya - and I have been to Rwanda to train their economist & statisticians on data collections for GDP calculations.
What exactly is this Niche that I don't understand?
Just same way Jordan was good in basketball but not baseball, Just same way Lewis Hamilton is good in Formula one but not good in football.
Its humanly impossible to be good in everything