We now have a new government, not the prettiest crowd of people but they’ll have to do for now so business and investor expects to have some sort of clear indicator of economic direction so they can all plan ahead.
I was just at a client’s restaurant during lunch discussing new renovation project (not the picture featured here), nothing fancy. There’s a new law that was formed in the previous government and ‘could’ be in effect in this government, that is baning all smoking in air conditioned area. For the Wine bar area, this law means they need to develop an out door area for their client to smoke, particularly cigar. They are skeptical and not sure about expanding the restaurant area because he said that fine dining business is said to be ‘a very fast economic indicator’, when there’s a lot of new projects and business, the restaurant is very active, and when there’s a slumber the business go down, and right now everything is not up or down.. sustaining. He’s waiting to see how things are turning out this year especially with this new government.
One thing I can speculate about this new government, a direct descendant from Taksin’s previous government before the military took over, knows about money and will probably dig out more government-loss-projects that puts money in the hand of the poor, as they don’t know how to manage it. That had worked well as a quick economic boost recipe before. More money is spent on the market, the economic "image" looks good, and people are happy. In the long run, government’s central reserved is drained out.. these stimulus plans are disaster in the making without long term consideration.
"Money, it has been observed, sticks to the rich but just slides off the poor, which makes them the lynchpin of stimulus. After decades of hearing the poor stereotyped as lazy, stupid, addicted and crime-prone, they have been discovered to have this singular virtue: they are veritable spending machines." – Barbara Ehrenreich, The Nation.
So we can probably expect economic stimulus packages to get more people to spend — and lure people to invest. The economic boost recipe quickly put food on the table like fast food restaurant.. but we all know that fine healthy food requires wholesome quality ingredient, and that takes time to developed.
Tagged: , restaurant , fine dining , thailand , economy , bangkok , mywinners