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Posts tagged with: Disaster Economics

Nawaz Sharif’s Bushonomics for Pakistan

Nawaz SharifFollowing up on Nawaz Sharif’s 10% Disaster Economics – Sayem Ali explains how Nawaz Sharif’s economic plan so closely resembled G Bush vision which lead to the world financial crisis in the US history after WW II

“I received some interesting responses to my previous article titled, ‘Nawaz’s 3E formula’. Dr Abbasi in his letter to the editor defended Nawaz Sharif’s 3Es policy of massive tax cuts to big business and the top 10 percent income earners. According to Dr Abbasi, similar tax cuts to big business encouraged higher investment spending and created more jobs in Europe and the US. Hence, Dr Abbasi suggests Nawaz Sharif’s 10-percent tax formula will work in Pakistan. I strongly disagree.

The tax cuts implemented by George Bush for big business and wealthy taxpayers led to the worst financial crisis in the US since World War II and caused record unemployment and sharp rise in poverty. Corporate tax rate was slashed from as high as 39.6 percent down to 15 percent and hefty tax breaks were doled out to wealthy individuals. These tax cuts were supposed to encourage higher spending by big banks, oil companies and multinationals for new job creation. Instead, big business and wealthy taxpayers used the money to bet on the stock markets and real estate, leading to a flush of liquidity in speculative investments. Instead of investing in the real economy and creating jobs, the money from the tax cuts created asset bubbles. When the bubble burst in 2008, the whole world was left reeling”

Pakistan’s rich & famous will NOT behave any differently
The News: Bushonomics in Pakistan – Sayem Z Ali
shared on Facebook by Awab Alvi


Nawaz Sharif’s 10% Disaster Economics

Nawaz Sharif is so clueless about solving the economic situation in Pakistan that during an exclusive interview with Hamid Mir a few weeks back he proposes PML’s economic plan to hinge on a flat 10% tax rate.  It may honestly look tempting but the gravity of the statement further exposes how clueless PML-N is about solving Pakistans problems and is focused only on a marketing strategy to fool the people (and appease the rich) into believing that their experience in power will salvage this country.

So dastardly clueless is this plan that probably little does he know that next year we need $12 billion to survive in the following 12 months – $5 billion to finance the current account deficit and $7 billion to repay out debts (principal and interest), the following year it doubles to $24 Billion.  Giving tax breaks to the rich is again shooting Pakistan in the foot, PPP has looted this country to bankruptcy under the garb of corruption – Nawaz Sharif plans to help the rich siphon off money, while the poor can continue their curse of poverty

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