WOULD THE BOYCOTT HAVE ANYTHING TO DO WITH THE ARUBAN ECONOMY???

If Government Does Not Reduce Expenses
Economy of Aruba Will Come to a Halt on the Long Run

If the government does not wish for Aruba’s economy to come to a halt it is up to the government to do something about it, amongst others with its expenses. Government expenses must be reduced and so far there is no indication that the government has any intentions to do so. The deficit and the budget must also be reduced even though the 2006 budget is not yet completed.


Many will ask: How can the economy come to a halt? This is because what the government is presently doing is reducing the purchasing power of each citizen, import duties were increased which makes all products more expensive and consequently the consumer will buy less.


Because the people will buy less the government will receive less revenue and also less will be imported. Consequently, we will land in a vicious circle. At the same time, there is too much money in circulation that the Central Bank which is to curb, and that it will have to continue doing there is a balance and that may take many years. Presently the Central Bank has limited credit possibilities. This in turn also brings the economy to a halt.


Thus, there are various factors that may bring our economy to a halt; an economy that will actually cool off and consequently there is less export of money, this may bring more inflation as a result of the present situation.