There has been a lot of talk about the financial crisis hitting the world and there seems to be no major plan to correct this problem in our own country. Every country has its own challenges and Jamaica is no different.

When there is a problem we seem to waste a lot of time lamenting the problem. What we need to do is to work assiduously towards a solution.

It is my belief that the finance minister should look at reducing interest rates. This will make it easier for the average person to borrow in order to buy cars and homes. Purchases of this nature have a direct influence on the demand for spare parts and appliances among other domestic items. Lower interest rates will see consumers spending less on interest costs, leaving them with more of their income to spend on goods and services.

Additional boost

The spin-off from this is an additional boost to the economy.

On the other hand, manufacturers and local business entities can borrow more to invest in equipment, inventories, and buildings. This will give business more of an incentive to invest when rates are low. Returns on investments will be worth more than when the rates are high. The economy will grow faster as well as people will spend more because they would have more money. The reverse of this would be an economic slowdown.

I am, etc.,

DEVON KING

mailbox4844@yahoo.com

3 Hillside Drive

Kingston 19