Cabrera: Austerity leads to poverty

“Austerity leads to national poverty,” said Cabrera to JTUM members on its Labour Economic Alternative Plan (LEAP) .

Cabrera’s discourse began with him rejecting the characterisation of the last year of economic downturn as a recession .

Former Central Bank Governor, Jawala Rambarran, declared on December 4, 2015, that the country was officially in a recession, but Cabrera disagreed, saying that the country is suffering from an “economic crisis caused by a tumble in energy prices” not a “classic recession.” “I have seen no capitalist throwing themselves off a skyscraper on the newspaper as yet,” Cabrera quipped, “which to me is the ultimate sign of a recession.” Cabrera questioned how the nation could be in a recession if the malls were still filled, large conglomerates were declaring exorbitant amounts of profits, and hardwares in his area are always running out of bricks and cement .

“ANSA McCal declares $353m profit – recession? ANSA McCal eyes two Barbados companies – recession? RBL, third quarter profits of nearly $1b – recession?” The BIGWU President noted that a proper diagnosis of the economic situation is key to administering a proper remedy. And according to his diagnosis, a downward trend could be seen in the economy from as far back as 2005, long before the fall in energy prices .

He argued that this could be explained more by wastage and gross inefficiency in the economy .