eric karanja's podcast

FACTORS OF PRODUCTION

° land

° entrepreneur

° capital

° labour

° technology



WHAT AILS KENYA

Is failure not to utilize the various production factors.


ENTREPRENEUR

° requires money or fund to build factories to employ labour and get a profit.


Bank loans or shares capital firms is churned to supply funds to build or expand.

Creating a market presence


They need quick technological , to spur the market online or having a presence


LABOUR

Entrepreneur employs workers to aid them to carry out their core roles of profit making. This bring back cash or salary or capital to workers. Who uses their knowledge or brain or skills.

These skills are paid via salaries where the government get taxes.


Hello, these workers then get decent income to take care of their livelihood. They educate kids, they buy homes or they buy goodies the whole economy functions.


CAPITAL

Is the money required to start a business. You get this via various formation of an angel fund, share capital formation or as a debenture from banks


TECHNOLOGY

This is a new way of doing things that disrupt what was done effectively or efficiently.


No need for extra hours , we can do a task with less time. It means what much production. Is expected with less cost.

So technological innovation helps to lesen cost and saving on cost

ECONOMY

Has various incentive introduced to help it grow. Notice no control exist.

FACTORS OF PRODUCTION

° land

° equity / capital/ money

° entrepreneur

° Labour

The above is what spur economic growth. If you tend to control or regulate you create a problem


BETA MODEL

Was to raise the low income / labour to the middle level economy. How was they to do it

° create market malls in every ward

° participate in public participation doctrine

° honour or raise mama Mboga to help them save

° create good structure free of trade regulation


BUT THIS HAS NEVER OCCURRED


UDA/ RUTO REGIME

Attacked the MONETARIST view " never control the market " allow the forces of demand and supply to behave.


So UDA attacked the payslip of income earners by controlling disposable income. They created a new tax 1.25 % to build affordable houses. This means what the extra cash one had to spend is not there any more. That why Kendrick Lamar songs " RUTO is not like us "

This destroys the saving culture and you can see this in the banking fraternity. The price or interest rate stand at 24% from 9% why ? You are a risk. Bank depend on saving so currently no saving exist or less saving is done .so a risk exist. To cushon this rusk I raise the lendind rate to 24%. Hello


REAL ESTATE/ ENTREPRENEUR/ LABOUR

Ruro introduced a competitor in the labour or entrepreneur market. The affordable houses he controlled the flow of money. So if the affordable houses have free land not bought and a free cash fund to build. Comparing with ploti maguta maguta market. You can see us real estate making loses.


HEALTH


KEYSEIAN VIEWS

The above taxes made or brought a no employment to other sectors of the economy only the affordable housing are on top gears. No major infrastructure is on going..no Major rail wat iz being build. No kazi mtaani is being carried out. RUTO has made the economy to stand still

So, the control he brought brought to a halt the economy. No growth. Hello



LABOUR

Kenya is exporting labour. This is so since no entrepreneur spirit is churned. No market malls are promised exist. No kazi mtaani is existing. So majority of people see this and the apathy in Kenya is known.

WHAT IS AILING KENYA ECONOMY

NOT LIKE US

Highlight what is not being carried out to safe the Kenyan economy

It highlight the underlying issues of policy failure versus the economic metric of Kenya


KENYA ECONOMY

Is not a middle class economy but a developing one. So an economic policy that tries to muscle off the common man income will end up in shambles and in political unrest as the common man perception will be " you are not like us '

Yu are not catering for my wellbeing but for your self gain.


MONETARIST THEORY

This view , Does not control the economy..it allow the economy to self regulate itself. Since the forces of demand and supply will come to equilibrium. The perception of the buyer will make the suppliers to reduce the price.


If you regulate the real estate economy then , you will injure the self regulation rule of the MONETARIST view.. One 1.25 % taxed on the income is giving the government an upper hand. Unlike the real estate firms who have no cash or fund but borrows to to do what ? Buy land, then wait for the customer to undergoe the same cycle of borrowing then borrowing to build. In span of five years that when stability will come. So no work is taking place now.. what the real estate is doing is to go to places where land is not expensive and invest there


Affordable Housing

Is a total messs to an already existing market..since the government has a cash fund plus a free land then the already existing real estate is disadvantaged.. since no incentives are given to them. So to the common man what is their views ' they are not like us "