Sad story

It is sad to read a story that people are still being arrested for ganja smoking even if it is in small quantities. I don't know if in Jamaica some people still have the belief that ganja can make you mentally ill. I think this is a stereotype that should be banished.

The Jamaican government should legalise it and allow it to be sold to people in small quantities as is done in the Netherlands. It is useless to arrest people because it is a natural plant. It is just senseless to arrest an innocent person and call him a criminal.

Samuel Bridge

ridimspice@yahoo.com

Nairobi, Kenya

Probe NWC too

One is impressed by the speed with which the contractor general has moved to investigate the contract to Aubyn Hill for the divestment of the sugar factories. How come he has not acted with equal speed to find out why on earth the National Water Commission spent a reported US$7 million to install a new billing system?

In case you don't know, that amounts to almost J$630 million! What kind of billing system could that be?

- Joan Williams

greatestj@hotmail.com

Robbing people through taxes

The International Monetary Fund's projection that Jamaica will have high inflation within five years should not surprise anyone who understands the inextricable link between government and inflation.

Government raises funds by taxation and borrowing and in the case of domestic currency denominated debt these are repaid from domestic tax revenues. It is in government's best interest to repay these fixed amounts at a time when tax revenues are greater.

Government attains this aim by increasing the amount of money (printing money) in the economy at a rate much higher than the rate of change in the total value of goods and services in the economy. This causes the price of goods and services to increase which results in a corresponding increase in tax revenues although the tax rates might be fixed.

The renowned monetary economist, Milton Friedman, concluded "inflation is taxation without legislation" and the effect of this unlegislated taxation is to stealthily rob the people of their income by reducing their purchasing power.

As long as government finances its operations by borrowing and imposing taxes, it will always have a vested interest in inflation.

- Mark Johnson

johnson.mark17@gmail.com

Georgia