upepo
Elder Lister
Do you know who exactly pushed the government to curtail the betting industry through higher taxation? I highly suspect it was the Kenya Association of Manufacturers. Among the various interest groups in the economy, local manufacturers, especially those dealing in fast-moving consumer goods, were the most affected by the betting craze. These entities rely heavily on the consumption by the masses at the bottom of the income pyramid. The betting industry, on its part, found a way of siphoning money directly from the same demographic that keeps industries going. Since winnings from betting activities stand at 50% at best, it means half of all wagered amounts were being shunted directly from the grassroots to foreign lands. Removing money directly from the grassroots level with no chances of return devastates the economy irreparably. When as little as 50 shillings is removed from the grassroots economy, someone becomes jobless within minutes to the extent of that amount.
For example, suppose John, a construction worker, hires a motorbike to work every morning spending 50 shillings. This one day, he decides to use his fare to bet and instead walk to work. That means he forgoes the bike ride, and rider misses the fifty shillings earnings, which means today he cannot afford breakfast at that roadside kiosk, and the kiosk owner won’t get the money to buy green vegetables for lunch, and vegetable seller won’t get the money to buy maize flour for lunch, meaning that the flour miller is forced to stay idle to the extent of the foregone sale. This cycle propagates multiple times and on a large scale, leading to a depressed economy where productivity is reduced. Keeping money in circulation at the grassroots level keeps people busy and productive.
In summary, siphoning money from the bottom masses is a sure death sentence to the country’s economy. Similarly, the opposite effect is realized when money is channeled to the bottom masses. Now you know.
For example, suppose John, a construction worker, hires a motorbike to work every morning spending 50 shillings. This one day, he decides to use his fare to bet and instead walk to work. That means he forgoes the bike ride, and rider misses the fifty shillings earnings, which means today he cannot afford breakfast at that roadside kiosk, and the kiosk owner won’t get the money to buy green vegetables for lunch, and vegetable seller won’t get the money to buy maize flour for lunch, meaning that the flour miller is forced to stay idle to the extent of the foregone sale. This cycle propagates multiple times and on a large scale, leading to a depressed economy where productivity is reduced. Keeping money in circulation at the grassroots level keeps people busy and productive.
In summary, siphoning money from the bottom masses is a sure death sentence to the country’s economy. Similarly, the opposite effect is realized when money is channeled to the bottom masses. Now you know.
