NESDB urges public spending to stimulate Thai economy

[webfact]

NESDB urges public spending to stimulate economy
By Digital Content

BANGKOK, March 26 – Thailand's economic growth in the first quarter could be lower than last year’s final quarter due to limited domestic consumption and export risks, according to the National Economic and Social Development Board (NESDB).

In its report to the weekly Cabinet meeting yesterday, the NESDB said budget disbursements must be speeded up to stimulate the economy while exports must also be accelerated.

It said industrial production has lessened by 7.4 per cent in line with declining manufacturing of automobiles and other products, but the agricultural production index has increased 3.2 per cent thanks to increases in productivity of rice, tapioca, sugarcane and corn.

Shrimp production has grown for the first time in 25 months, said the NESDB which reported an overall increase in farmers’ income.

Tourist arrivals in January, however, increased only 0.06 per cent and dropped 8.15 per cent in February due to the months-long political conflicts.

Though tourist arrivals at Suvarnabhumi and Don Meuang airports in Bangkok have dropped, provincial airports have enjoyed an increase, especially in Samui, Krabi, Chiang Mai and Phuket, said the NESDB.

Tourist arrivals continued dropping, falling by 8.45 per cent since March 1 given announcements by 49 countries, warning their nationals from travelling to Thailand.

Quoting a Commerce Ministry report, the NESDB said exports in January dropped 2 per cent mainly from six major goods – rice, rubber, shrimps, automobiles, construction materials and rubber products.

Excluding the six categories of goods, the country’s overall exports increased 4.4 per cent thanks to expansion in other industrial sectors which exported to Europe, the United States and Japan. (MCOT online news)

-- TNA 2014-03-26

[rickirs]

Public spending to stimulate Thai economy - isn't that the kind of "populist policy" that Suthep wants to ban as part of his reforms for the Government? He would probably more favor policies that would shift more wealth to the elite and upper income classes from the middle and low income classes. Otherwise populist prgrams might raise the standard of living and educated of the middle and low income classes to an extent that the political power of elite and upper income classes would be diluted. When you're number one in society you have to be vigilant to keep it.

[Senechal]

Public spending to stimulate Thai economy - isn't that the kind of "populist policy" that Suthep wants to ban as part of his reforms for the Government? He would probably more favor policies that would shift more wealth to the elite and upper income classes from the middle and low income classes. Otherwise populist prgrams might raise the standard of living and educated of the middle and low income classes to an extent that the political power of elite and upper income classes would be diluted. When you're number one in society you have to be vigilant to keep it.

Huh? Stimulus *does* shift wealth to the elite classes. That's all it does. The world has just come through 14 years of the highest aggregate stimulus in human history and wealth disparity is higher now than any time since the Middle Ages. Don't believe the propaganda. Stimulus preserves banks and corporate structures far more than it helps the little guy. Want to create more equality, then allow deflation to work. Banks will implode, and your money will go further.