It should not seem counterintuitive or unfeasible to grow the economy by making more money available to middle and lower-income earners. It should not seem odd or impossible to stimulate growth in the economy by enabling more Jamaicans to patronise local businesses and buy local goods.

The proposed raising of the income tax threshold by the Jamaica Labour Party (JLP) is an ingenious idea which we, G2K West, support wholeheartedly.

The proposed policy by the JLP is not a con or a pie-in-the-sky dream. A basic understanding of economics would inform critics that the idea has its roots in Keynesian economic theory which is yet to be debunked. Put simply, Keynesian economic theory suggests that governments should embark on “active fiscal policies”. This entails increasing wages and, consequently, increasing consumption.

This really amounts to a fiscal stimulus which inevitably increases production, profitability and business optimism. Undoubtedly, this is the kind of “active fiscal policy” that Jamaica needs at a time when the official statistics on unemployment in the third quarter of 2015 was at 13.1 per cent and youth unemployment rate at over 38 per cent, according to World Bank figures.

When John F Kennedy took office as president of the US in 1961, unemployment was at 6.7 per cent and recovery from the recession of the late 1950s had been sluggish.

Kennedy’s response was to “get America moving again” through a fiscal policy of tax cuts and other bold domestic initiatives which ignited the US economy.

Kennedy proposed, in 1963, to cut income tax from a range of 20-91 per cent to 14-65 per cent. He also committed to cutting corporate tax rate from 52 per cent to 47 per cent. The result was economic growth and expansion in 1963.

The success of Kennedy’s economic policy occurred despite criticisms and opposition from the Republicans and some conservative Democrats. As a consequence of Kennedy’s bold fiscal policy, real GDP grew at 5.8 per cent in 1964, 6.5 per cent in 1965, and 6.6 per cent in 1966.

The unemployment rate declined from 5.2 per cent in 1964 to 3.8 per cent in 1966, falling all the way to 3.5 per cent in 1969. Kennedy’s policies were aptly suited for America’s golden age. “Progress is impossible without change, and those who cannot change their minds cannot change anything.” (George Bernard Shaw)

At the Jamaica Labour Party’s mass rally on Sunday, February 7, party leader Andrew M Holness alluded to the fact that with our average public sector workers taking home more money, this will have the potential to create employment. This will result in increased consumption and production.

With the removal of income tax from the first $1.5 million earned, we envision more Jamaicans being able to afford goods and services. We see an age of prosperity in which Jamaicans are able to employ other Jamaicans, boost demand for local goods and services, and arrest the unemployment burden.

Is it not time that the average Jamaican worker be given the opportunity to have more control over how his income is spent? We cannot ignore the multiplier effect of this bold initiative.

G2K West wants all Jamaicans to support the fresh, bold, innovative ideas that are the focal points of our campaign towards prosperity. We reiterate our support for this practical idea and look forward to an era when no Jamaican has to be poor.

Zandrea Banton is a member of G2K St James.