Don’t let corporate media fool you. There are always alternatives. Choose your path carefully, for once you’ve seen the possibilities you cannot unsee them. The first article below is pulled from real current events, the second article in blue has been rewritten to show how things could be if different choices were made…
Protests have erupted in Kenya over proposed austerity conditions and tax hikes that will crush the population. What would you do?
TODAY’S REALITY
(taken straight from current news headlines)
Kenya police use tear gas, water cannon as hundreds protest over tax hikes
Police in Kenya have fired tear gas and used water cannon to disperse protesters gathering near parliament in the capital to demonstrate against planned tax hikes that many fear will worsen the cost-of-living crisis.
Tense scenes played out in Nairobi on Thursday as hundreds took to the streets in opposition to a finance bill, which proposes introducing new taxes and levies that would increase the price of basic goods.
The tax increases were projected to raise 346.7 billion shillings ($2.7bn), equivalent to 1.9 percent of gross domestic product (GDP), and reduce the budget deficit from 5.7 percent to 3.3 percent of GDP.
The cash-strapped government of President William Ruto agreed to make concessions on Tuesday, watering down the bill after hundreds of mostly young protesters clashed with police.
But the government will still go ahead with some tax increases and has defended the proposed hikes as necessary for filling its coffers and cutting reliance on external borrowing.
Protesters have decided to stage demonstrations across the country, including in the Indian Ocean city of Mombasa and the lakeside city of Kisumu, both opposition bastions.
In Nairobi, lawmakers debated the bill on Thursday in its second reading before parliament. The final version must pass before June 30. Meanwhile, authorities blocked several roads near parliament and made a heavy police deployment.
Reporting from Nairobi’s city centre, Al Jazeera’s Malcolm Webb said demonstrators outnumbered the police in the streets.
“Police are firing a lot of tear gas here this morning … and there is a thick smell of tear gas in the air where we are,” he said. Around him, some people chanted: “Ruto must go!”
“A lot of protesters here are young people, social media users. It looks very different from the kinds of protests that we saw in Kenya just over a year ago called for by the political opposition also about the rising cost of living,” Webb said. “The cost of living has been going up, on and off, since the global [COVID-19] pandemic.”
Kenyans are “fed up of the increased taxation”, Stella Agara, a Kenyan tax justice activist, told Al Jazeera, adding it “especially increased austerity measures that keep on targeting the poorest of citizens and is becoming very uncomfortable for most of them”.
“But there is now a very interesting group that has been brought to the fore, which is Generation Z … They have been extremely disinterested in the elections, in voting, etc. But for some reason, this time they are very keen and are the ones on the streets protesting increased taxation – especially because of some of the taxes that are going to be imposed on digital content creation, which is a space that they dominate.”
Agara said younger Kenyans have also seen their parents’ financial struggles under “a government that is completely insensitive to their needs”, which is also causing them to react this way.
The presidency announced on Tuesday the removal of proposed levies on bread purchases, car ownership as well as financial and mobile services, prompting a warning from the treasury of a 200-billion-shilling ($1.5bn) shortfall as a result of the budget cuts.
The government has now decided to increase fuel prices and export taxes to fill the void left by the changes, a move critics say will make life more expensive in a country already battling high inflation.
The East African economic powerhouse relies heavily on diesel for transport, power generation and agriculture, while kerosene is used by many households for cooking and lighting.
Tuesday’s protest was largely peaceful, although police also fired volleys of tear gas. At least 335 people were arrested, according to a consortium of lobby groups, including the human rights commission KNCHR and Amnesty Kenya.
ALTERNATE POSSIBILITY
(in a world where the people come first & governments understand how to use the lens of Modern Monetary Theory)
Kenya government makes significant policy reversal, avoids uprising
Real Progressives rewrite, June 20, 2024
In a bold move, Kenya has charted a new course by leveraging its monetary sovereignty to pay off its IMF debt with the help of China and has committed to investing in public welfare, breaking free from the shackles of IMF structural adjustments, foreign investment dependency, and austerity measures.
Tense scenes had been anticipated in Nairobi on Thursday as hundreds planned to take to the streets in opposition to a finance bill, which proposed introducing new taxes and levies that would increase the price of basic goods.
The tax increases were initially projected to raise 346.7 billion shillings ($2.7bn), equivalent to 1.9 percent of gross domestic product (GDP), and reduce the budget deficit from 5.7 percent to 3.3 percent of GDP.
However, the Kenyan government, under new leadership, has proposed a different approach with the understanding that a balanced budget should not be the goal of a currency-issuing government and that taxes remove money from the economy and are not the government’s source of funding.
By accepting financial support from China and the BRICS coalition, Kenya will be able to pay off its IMF debt and not be strapped with forced structural adjustments that would sell off the country’s vital resources to foreign investors.
Instead of succumbing to the neoliberal agenda of austerity and privatization, President Naomi Kamau’s administration will leverage the power of its free-floating fiat currency to invest directly in the public purpose and make use of its own resources for its own people.
As part of this revolutionary shift, the government announced significant public investments in additional productive capacity, social safety net programs as well as food and energy sovereignty initiatives. This strategy aims not only to stimulate economic growth but also to address the systemic inequities perpetuated by the existing capitalist system, improving the quality of life for all citizens and reducing class disparities.
Reporting from Nairobi’s city center, Al Jazeera’s Malcolm Webb had noted earlier in the day that demonstrators outnumbered the police in the streets.
“Earlier this morning, there was a lot of tension and a heavy police presence, with tear gas being fired intermittently. However, the announcement of large-scale public investments has changed the atmosphere. Many protesters are now dispersing voluntarily, and the sense of confrontation has diminished significantly,” Webb said. Around him, some people even chanted: “Kamau for the people!”
“A lot of protesters here are young people, social media users. It looks very different from the kinds of protests that we saw in Kenya just over a year ago called for by the political opposition also about the rising cost of living,” Webb said. “The cost of living has been going up, on and off, since the global [COVID-19] pandemic.”
Kenyans are “fed up of the increased taxation,” Stella Agara, a Kenyan tax justice activist, told Al Jazeera, adding it “especially increased austerity measures that keep on targeting the poorest of citizens and is becoming very uncomfortable for most of them.”
“But there is now a very interesting group that has been brought to the fore, which is Generation Z … They have been extremely disinterested in the elections, in voting, etc. But for some reason, this time they are very keen and are the ones on the streets protesting increased taxation – especially because of some of the taxes that are going to be imposed on digital content creation, which is a space that they dominate.”
Agara said younger Kenyans have also seen their parents’ financial struggles under “a government that is completely insensitive to their needs,” which is also causing them to react this way.
President Kamau is committed to utilizing the flexibility of the nation’s monetary sovereignty to fund public projects and ensure economic growth without raising fuel prices or imposing new export taxes.
This marks a significant departure from the western-led neoliberal playbook of the previous administration. This new Kenyan government’s actions embody a shift towards an economy that prioritizes the needs of the people over the profits of the few.
3 thoughts on “Choose Your Own Economic Adventure #1”
Love this! I wish we all lived in the blue version of this World! Thank you, Jules and RP for widening our imaginations! ⚖️
Me too Cheryl! Me too. ✊