Kuwait government has one main revenue source: “oil”, and the population has one main source of revenue: “government salaries and projects”. Therefore, trying to increase government revenues by imposing taxes and raising rates, is a viscous circle and an exercise in futility. It Continue reading “Want Privatization? Go To Brazil!”
One economic opinion argues that rising oil prices do not cause consumer price inflation in the short to medium term. Its reasons that consumers’ incomes are fixed in the short term and, as such, are distributed (spent) among a variety (basket) of goods and services. Continue reading “Inflation in Kuwait and the Gulf”
Is Privatization The Solution?
There is a prevalent misconception of privatization. On one hand, the concept of privatization is diverse and hence complex, with no universal consensus on why and where it may be applied, what it exactly entails, how it is to be implemented and what are its actual historical outcomes. On the other hand, heavy doses of public relations cosmetics have been applied to Continue reading “Is Privatization The Solution?”
Kuwait Population Structure Remedies?
Al Qabas newspaper published on April 17, 2017 a report on the preliminary proposals made by the government committee responsible to find remedies for the skewed population structure of Kuwait. Continue reading “Kuwait Population Structure Remedies?”
Expatriate Labor and the Population Structure in Kuwait
Panic and hysterics rarely deliver good and lasting solutions. Especially when the problem is old and ingrained. And, especially when it is as obvious as an elephant in the room, but we refuse to recognize it out of fear, indifference, or we are simply benefiting from its presence. Then, one day, we wake up to the fact the elephant has outgrown the room’s door and can’t get out! Continue reading “Expatriate Labor and the Population Structure in Kuwait”
Kuwait Elections – Pessimism Versus Optimism
Wherever you look or listen, you only see or hear pessimistic comments about the Kuwaiti political condition, which in turn is, erroneously, used to explain the economic slowdown in the country. You hear this from intellectuals and professionals, as well as from the masses, who flood the social media with rumors, speculations, wrong information and, occasionally, half-truths that are explained to suit the author. Continue reading “Kuwait Elections – Pessimism Versus Optimism”
ADDENDUM TO: Yesterday’s article on Electricity Rate Increases
Yesterday’s article on electricity (The Petrol Price Hike is Peanuts) created quite a stir, and probably generated plenty of questions. And on the advice of our friend, Mr. Abdul Rahman Al Houty, we herewith add some more information to add clarity to a difficult subject. (However, this does not eliminate the need for a full-fledged in-depth study of the issue).
NOTE: Like all averages, these are very rough indications. Each is based on separate assumptions that may or may not be relevant to our case.
House size, family size, climate, etc. are based on other countries and societies which are different to the Kuwait and the Gulf. Continue reading “ADDENDUM TO: Yesterday’s article on Electricity Rate Increases”