We’re making less money

Ask anyone on the island who is in business for themselves, they are making less money now, compared to 2019.

I say: Wake me up when it’s all over, in total acceptance of the way of the world, this is cyclical, what goes down must eventually come up.

The last two years had a great effect on our world, who would have thought that we would practice social distancing — I did not kiss or hug friends in almost two years.

And I don’t intend to start now. I will wait a bit for the future to show itself, down the road. I have experienced social, financial, and emotional changes during the past two years.

And these are real changes, we now spend more time home, we perceive ourselves as part of the globe, where before we thought we were an island, we feel and see the weather going crazy.

After the philosophical introduction, let’s get back to earth, to Aruba.

Today, Friday, the Dutch council convened, and they, as expected, rejected Aruba plea to reverse the 12.6% salary reduction.

As an entrepreneur, I would trade places in a heartbeat with government employees because 12.6% is very little in comparison to losses in the private sector.

We have to embrace reality, and take personal responsibility for how we spend our money, and what we buy and consume.

More money is not going to alleviate our financial stress, because if we get more money we will spend more.

Learn new ways, and learn them now.

Because:

Inflation in the Netherlands is reported at 7.6%

In Aruba it will become a double digit, NOT the ridiculous 1.6% the Central Bank ‘predicted.’

So this means one florin in 2019 was worth 93 cents of 2020, and with further cost of living hikes the 93 cents of 2020 will be worth 75 cents in 2022 — that’s how inflation works.

Then on top of that the 12.6% reduction

In 2022 in comparison to 2019, our florin is worth 66 cents. We lost a lot of buying power. Private and public sector.  We are experiencing a massive reduction in income that will cause a reduction in collected taxes, which will put even more pressure on GOA’s budget that is already stretched to the max

LABOR UNIONS: TEACH YOUR PEOPLE TO SHOP ON A BUDGET, AND LIVE ON A BUDGET INSTEAD OF MAKING FUTILE DEMANDS.

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February 04, 2022
Rona Coster