Tuesday, January 20, 2015

Wondering Why Trinidad Fete Prices Are So High?

Thank your Government (Working For You) and the Central Bank of Trinidad and Tobago. 
Data source: Central Bank Trinidad & Tobago
When the Central Bank increases the money supply (prints money or electronically puts it into circulation) prices of everything go up; since each individual dollar becomes less valuable. 
This is exactly what has happened in Trinidad & Tobago where the  $TT money supply has exponentially increased thereby causing chronic inflation which permeates into all areas of the T&T including Carnival. 

To add insult to injury fete prices are further bid up by state corporations and the politically connected who purchases batches of tickets with funds sourced either directly or indirectly from tax payers.  

Successive governments have indiscriminately printed more dollars and put them into circulation so as to facilitate additional government spending. Note well that additional gov't spending isn't free as it citizens ultimately pay for this government spending via the hidden "inflation tax" i.e. a tax on their purchasing power. 

Printing more $TT is the preferred method of "financing" government spending as it is hidden and is more politically expedient than raising taxes or denying the masses political handouts.

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