THE EDITOR: Economics is not an exact science, it is primarily based on assumptions depending on what is happening in the marketplace. We all sometimes practise some sort of economic activity in our daily lives.

In all honesty, I tried to digest the government’s budget before making an assessment of it, and in my assumption, I came up with the view that this was a pampering budget.

There are micro and macroeconomics, the micro-sector basically deals with supply and demand whilst the macro sector deals with inflation, goods and services, unemployment, trade, etc.

The two types of theories that exist in economics, the Keynes and the Friedman theory can co-exist because it is a matter of choice or taste.

The implementation of an increase in the minimum wage, although not adequate, should be acceptable based on the state of the country.

The trade unions who most times try to justify larger increases for it is membership are merely trying to hoodwink the population to believe that they are earnestly trying to better their standards of living when in fact they are just like the so-called "one percenters" referred to by them.

The executives of the trade unions benefit more from the sweat of the labour force as they relish luxurious lifestyles to the detriment of the workers.

I am pleading to the small and medium enterprises not to increase their prices due to the cost that has been subscribed to the minimum wage. The larger industries slowly and very discreetly inflate prices continuously unknown to the consumer.

There are two types of inflation – cost-push, which is caused by demand and supply – and the other when there is an increase in money supply in the hands of people there is a tendency to spend lavishly without due concern, putting their financial status in jeopardy.

The safest place to live is to stay within your income, do not be “pennywise but pound foolish,” as the adage goes.

If you have the ability to enjoy the luxuries of life then do so, but do not hang your hat where your hand cannot be in touching distance. Have a smart Christmas.

EARL MARTIN

Trincity

The post Govt's pampering national budget appeared first on Trinidad and Tobago Newsday.