Nicxie
JF-Expert Member
- Jun 20, 2017
- 18,216
- 12,774
You are trying to sound like a real economist and I can see your fellows clapping and stamping their feet for you. Well, you are just a wannabe. A fellow who the word economics is as foreign to as the profession itself. In my entire life, I have never seen a case where having a stronger currency is a disadvantage and having a weaker currency is a blessing in disguise. If that were the case, Zimbabwe would be a flourishing African state used as a case study as far as development is concerned. Everything you are saying here is just hot water, empty rhetoric meant to hoodwink your fellows and massage their egos.I have seen you putting alot of prominence on two points, currency value and budget just to prove your point that Kenya is ahead. Be informed that a strong currency has never and will never be a determinant in measuring the well-being of an economy. Infact a weak currency is more favourable to an economy with ambitions to compete in international trade, most especially a developing economy. In economics perspective the Kenyan relative strong currency is doing them more harm than good e.g higher costs of production, higher wage rates e.t.c. hence affecting its competetiveness negatively.
A budget is simply an estimate of income and expenditure, lets focus on the expenditure side. Since Kenya has a strong currency than her peers in the region. What Usd 500m can do in Tz or any where else in E.A will do less in Kenya other factors remain constant. A good example are the infustructure projects undertaken by the GOT using local funds e.g SGR, Mega Hydro dam in Rufiji, bridges, e.t.c. The Kenya you praise to have a "high" budget cant implement even half of the aforementioned projects without acquiring a loan. Infact Kenya despite her "higher" budget its so broke to an extent of acquiring new loans to pay old loans! Number of millionaires and other minor issues you mentioned are explainable in favour of Tz. Too bad, now is not the right time but go research the genesis of both economies Tz and Ke. BTW i have also travelled across E.A, been to all E.A nations. Sasa hivi nipo Nyalenda Kisumu [emoji23][emoji16][emoji41]View attachment 1199461
Saying that $500 million can do more in Tanzania than Kenya because Kenya has a stronger currency is baseless argument that lacks an iota of truth in it. That money can only do more in Tanzania if the cost of raw materials and other factors of production are cheaper in Tanzania than Kenya, but not because Tanzania has a weaker currency. That is stupid argument and way of looking at things. How does a stronger currency result to high cost of production as you imply above? What economic explanation can support this argument? High costs of production come as a result of many factors, key among them being taxation, cost of electricity among many other things. I have never seen a case where having a strong currency is a factor leading to high cost of production.
Wadanganye watanzania wenzako, sio sisi!