The 200kd give away is the best thing that the government can do for the Kuwait economy. Yes granted t
hat people can talk about how it can be spent else where, prescription website like this but this is just $.5 billion out of a $4.5+ billion surplus. I am sure they can use
the other 4billion for schools, hospitals and other things.
So how is this amazing? Well it all goes down to economics and the multiplier. When the government gives out 200,0
00,000 KD to the people of Kuwait tax free and with no strings attached, they are going to spend about
3/5th of it.
So 200m * .6 = 120m
That 120 million will then be in other peoples pockets and they will spend it.
120 * .6 = 72
This multipier will keep going and according and to my Excel sheet create 500million KD. that will be
spent and circulating in the economy.
By having the people spend the money, and companies and individuals earning it. This creates a postive
cycle and growth in the economy, leading to jobs, higher wages and a better standard of living.
Also since some of this money will also be leaving Kuwait it will benifit countries that export since
it will boost their economy and increase their wages, and reduce the burden of the high oil prices tha
t has been affecting them and encourage them to buy more oil thus helping Kuwait.
I believe within 6 months of the money being released we will see an increase in employment and overal
l wealth in Kuwait. But lets not forget there is that other 4billion that the government will spend an
d invest and that will also be part of this multiplier effect.
There are other factors to consider in all of this, but I am not Greenspan so I can’t predict it all but the basic numbers are there and poin
t to a positive growth for Kuwait.
Sadly I think this is Jabir’s swan song, and By doing this he is leaving on a high note with the Kuwai
ti people.
The 200kd give away is the best thing that the government can do for the Kuwait economy. Yes granted t
hat people can talk about how it can be spent else where, prescription website like this but this is just $.5 billion out of a $4.5+ billion surplus. I am sure they can use
the other 4billion for schools, hospitals and other things.
So how is this amazing? Well it all goes down to economics and the multiplier. When the government gives out 200,0
00,000 KD to the people of Kuwait tax free and with no strings attached, they are going to spend about
3/5th of it.
So 200m * .6 = 120m
That 120 million will then be in other peoples pockets and they will spend it.
120 * .6 = 72
This multipier will keep going and according and to my Excel sheet create 500million KD. that will be
spent and circulating in the economy.
By having the people spend the money, and companies and individuals earning it. This creates a postive
cycle and growth in the economy, leading to jobs, higher wages and a better standard of living.
Also since some of this money will also be leaving Kuwait it will benifit countries that export since
it will boost their economy and increase their wages, and reduce the burden of the high oil prices tha
t has been affecting them and encourage them to buy more oil thus helping Kuwait.
I believe within 6 months of the money being released we will see an increase in employment and overal
l wealth in Kuwait. But lets not forget there is that other 4billion that the government will spend an
d invest and that will also be part of this multiplier effect.
There are other factors to consider in all of this, but I am not Greenspan so I can’t predict it all but the basic numbers are there and poin
t to a positive growth for Kuwait.
Sadly I think this is Jabir’s swan song, and By doing this he is leaving on a high note with the Kuwai
ti people.
The 200kd give away is the best thing that the government can do for the Kuwait economy. Yes granted t
hat people can talk about how it can be spent else where, website like this but this is just $.5 billion out of a $4.5+ billion surplus. I am sure they can use
the other 4billion for schools, hospitals and other things.
So how is this amazing? Well it all goes down to economics and the multiplier. When the government gives out 200,0
00,000 KD to the people of Kuwait tax free and with no strings attached, they are going to spend about
3/5th of it.
So 200m * .6 = 120m
That 120 million will then be in other peoples pockets and they will spend it.
120 * .6 = 72
This multipier will keep going and according and to my Excel sheet create 500million KD. that will be
spent and circulating in the economy.
By having the people spend the money, and companies and individuals earning it. This creates a postive
cycle and growth in the economy, leading to jobs, higher wages and a better standard of living.
Also since some of this money will also be leaving Kuwait it will benifit countries that export since
it will boost their economy and increase their wages, and reduce the burden of the high oil prices tha
t has been affecting them and encourage them to buy more oil thus helping Kuwait.
I believe within 6 months of the money being released we will see an increase in employment and overal
l wealth in Kuwait. But lets not forget there is that other 4billion that the government will spend an
d invest and that will also be part of this multiplier effect.
There are other factors to consider in all of this, but I am not Greenspan so I can’t predict it all but the basic numbers are there and poin
t to a positive growth for Kuwait.
Sadly I think this is Jabir’s swan song, and By doing this he is leaving on a high note with the Kuwai
ti people.
I suffer from what is sometimes called the Hidden Disorder.
“a vague, pills unpleasant and sometimes debilitating emotion that is experienced in anticipation of some mi
sfortune. “
Or better known as anxiety. This something that is like a sickness or really an addiction. You know yo
u have a problem, visit this
and it is causing you problems yet you keep going back to it.
This is something I plan to deal with on my trip for the next 10 days. I will be reading Getting Things Done. This book
has a lot of things to get my mind right in terms of organizing my clutter and setting list and prior
ities and how to follow through on them. I feel it will be a good change for me and something I am goi
ng to focus on.
No iPod on this trip just books and paper, well and my phone. I plan to get a GPRS connection when I a
m there so I can send pics to my Flickr page and also
blog about stuff. So you will hopefully be updated.
I think this will be a good trip, feel something “good” about it like this will set things straight.