Economics - In Haiti, The Flow Of Income is NOT Circular, That's why we are so POOR, Details...

Haiti's Economic System - Flow of Income is FLAT, not Circular

KREYOL: Men kijan Ekonomi Haiti a mache: Gro Zouzounn yo importe tou lè bagay... Yo pa bay JOB nan peyi a, Diaspora voye Lajan, Haitien achte produit importe pou yo konsome, Lajan retounen nan peyi kote produit yo soti a... Tout benefis rete nan men gwo zouzounn yo... Peyi sa yo vinn pi rich paske y ap produi, nou Haitien, nou pòv pi rèd... Tout tan Haitien pa produi lakay pou nèg lakay konsome, lajan pap sispann kite peyi a, nou pap sispann pòv... Kisa ou panse de sa???

NOW... Think about the Haitian economy for a minute...

Most of the money Haitians received comes from OUTSIDE of Haiti... As soon as that money comes in, Haitians CONSUME it by buying Goods from MERCHANTS (food, clothes, household products, etc) who import from other countries (USA, Dominican Republic, etc...)

Most of the income that flows into the pockets of a Haitian living in Haiti ends up leaving the Haitian economic system in one hop... because, no mater how you look at it, most of what we consume everyday comes from other countries, NOT from firms within the country would pay wages to Haitian households in exchange for labor.

WATCH this video to understand what the circular flow of income is and how the different components of a real economy interacts...

In Haiti, there are NO FIRMS, as the video suggests, to provide households with goods and services. There are only MERCHANTS who import these goods and services from elsewhere.

Since there are NO FIRMS or not enough in firms Haiti, Haitian household cannot provide labor to these firms in exchange for a paycheck; therefore, most Haitians leave Haiti to provide labor to FIRMS in other countries (the Haitian Diaspora) and they send part of their earnings back home for consumption.

Need I say it again? Since what Haitians consume is produced elsewhere, that money lands in the hands of MERCHANTS who export it out of Haiti in return for the goods they sell for a profit.

What do you think about that?

Reply with your comments

Read more: haitian economy, Money, Saving Money, Money Transfer to Haiti, Haiti Economic Assistance, Haiti Flow of Income

You might also like

Haiti Politics - ARNEL Belizaire di l ap Arete RORO Nelson ka menm

Haitian Political Activist Fritz St Louis Murdered in Venezuela

Responses