This is the most recognizable phrase in financial and other capitals in the world today. Basically, it is the code word for taking a tidy bunch of tax payers money – In Kenya's case, this means take all scandals that have ever hit the airwaves in Kenya, I mean everything before Goldenberg, to well, Goldenberg, Anglo Leasing, and everything in between and after, estimate the actual tax shillings, quadruple this figure, and put the resulting sums into one huge pot called the Stimulus Purse. Then use these blessed sums to redeem institutions in the economy, everything imaginable from going under.
When the credit scandal first hit the financial capitals of the world, New York, London, Beijing, Moscow, governments moved with speed to shove up the financial sectors. These governments took plane loads of cash, called them stimulus packages, and injected them into the financial sectors, banks, insurance agencies, investment firms, and even mortgage houses. People lost their jobs, mergers took place brokered by treasuries, and special financing arrangements were put in place to make any of this possible. Everyone was in agreement, there was only one option, government led stimulus plans. Inaction was not an option. Inaction would lead to drastic withdrawals of savings from banks, dumping of stocks that had in a few months become toxic and would in turn lead to dumping of otherwise clean stock and we would be back in the dark ages. No functioning financial systems. No Banks, no manufacturing companies, no techies, no insurance companies, well, nothing.
This set me thinking, if a financial crisis on Wall Street resulted in the most massive stimulus plan the world has ever seen, surely, this could only mean one thing. Kenya, which has been going through various crises, is in dire need of a massive stimulus plan. The scandals rocking the country are numerous. There is a maize scandal, an oil scandal, a Grand Regency scandal, the President’s marital status scandal, unfinished Goldenberg and Anglo Leasing scandals, a passport scandal, an army boots scandal, an elections scandal and tomorrow’s yet to be discovered scandals. Actually, the whole government is a scandal. Since this laundry list of scandals hit our economic capital Nairobi, well, nothing has really happened. Now we find ourselves in dire need of several stimulus plans - maize, oil, the Grand, the President’s marital matters, Goldenberg, Anglo Leasing, passports, boots and well, stimulus plans for tomorrow's scandals.
So how do we put together stimulus plans to cover all of these crises? The answer is really simple, use tax payers money. Thereafter, increase taxes of the rich, reduce taxes of the poor to encourage spending while raising income, and put an impressive team of experts to manage the stimulus package funds.
When the credit scandal first hit the financial capitals of the world, New York, London, Beijing, Moscow, governments moved with speed to shove up the financial sectors. These governments took plane loads of cash, called them stimulus packages, and injected them into the financial sectors, banks, insurance agencies, investment firms, and even mortgage houses. People lost their jobs, mergers took place brokered by treasuries, and special financing arrangements were put in place to make any of this possible. Everyone was in agreement, there was only one option, government led stimulus plans. Inaction was not an option. Inaction would lead to drastic withdrawals of savings from banks, dumping of stocks that had in a few months become toxic and would in turn lead to dumping of otherwise clean stock and we would be back in the dark ages. No functioning financial systems. No Banks, no manufacturing companies, no techies, no insurance companies, well, nothing.
This set me thinking, if a financial crisis on Wall Street resulted in the most massive stimulus plan the world has ever seen, surely, this could only mean one thing. Kenya, which has been going through various crises, is in dire need of a massive stimulus plan. The scandals rocking the country are numerous. There is a maize scandal, an oil scandal, a Grand Regency scandal, the President’s marital status scandal, unfinished Goldenberg and Anglo Leasing scandals, a passport scandal, an army boots scandal, an elections scandal and tomorrow’s yet to be discovered scandals. Actually, the whole government is a scandal. Since this laundry list of scandals hit our economic capital Nairobi, well, nothing has really happened. Now we find ourselves in dire need of several stimulus plans - maize, oil, the Grand, the President’s marital matters, Goldenberg, Anglo Leasing, passports, boots and well, stimulus plans for tomorrow's scandals.
So how do we put together stimulus plans to cover all of these crises? The answer is really simple, use tax payers money. Thereafter, increase taxes of the rich, reduce taxes of the poor to encourage spending while raising income, and put an impressive team of experts to manage the stimulus package funds.
Each issue will be tackled hereafter.
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