3 ms·

I had this conversation today about Bali. The place is a mess. Lots of expensive private clubs extracting money from the local economy and siphoning it offshore

I had this conversation today about Bali. The place is a mess. Lots of expensive private clubs extracting money from the local economy and siphoning it offshore. If they took just a portion of their (speculated) ridiculous profits to pay taxes (to a non corrupt non mafia government... Ie not what currently exists) they could solve some major problems very simply and actually make Bali a pleasant place to be in public.

southerndrift 7y ago
Would the labor for the private clubs still be cheap if the money stayed in Bali?
- malandrew 7y ago
  I don't understand why this was downvoted. It's pretty basic economics here by at least two mechanisms: - when the money leaves the country, it reduces the money supply so less money is chasing goods and services like labor, thereby mitigating inflation. - when money leaves the country, it reduces the demand for that country's currency, increasing the buying power of visitors from other countries when they are in Bali. That said, the magnitude of the importance of these two effects is debatable.
- rorykoehler 7y ago
  I don't really care if labour is cheap. You're gonna be paying Singapore /Australian prices regardless. The point is more around when you pay those prices in sg or au your also paying for the government and the infrastructure that they fund with your tax money. What exactly are you paying for in Bali? To sit in traffic because no one thought to build footpaths or plan the town? It's just bad value for money and I feel the locals are getting robbed. All the costs (pollution etc) are internalised by them because they have no choice while all the benefits are privatised.
Synaesthesia 7y ago
Yeah Indonesia in general has very corrupt leadership which doesn’t so much make provisions for the population as seek to profit from them. It will require a proper political revolution to change.

southerndrift 7y ago

Would the labor for the private clubs still be cheap if the money stayed in Bali?

malandrew 7y ago
I don't understand why this was downvoted. It's pretty basic economics here by at least two mechanisms: - when the money leaves the country, it reduces the money supply so less money is chasing goods and services like labor, thereby mitigating inflation. - when money leaves the country, it reduces the demand for that country's currency, increasing the buying power of visitors from other countries when they are in Bali. That said, the magnitude of the importance of these two effects is debatable.
rorykoehler 7y ago
I don't really care if labour is cheap. You're gonna be paying Singapore /Australian prices regardless. The point is more around when you pay those prices in sg or au your also paying for the government and the infrastructure that they fund with your tax money. What exactly are you paying for in Bali? To sit in traffic because no one thought to build footpaths or plan the town? It's just bad value for money and I feel the locals are getting robbed. All the costs (pollution etc) are internalised by them because they have no choice while all the benefits are privatised.

Synaesthesia 7y ago

Yeah Indonesia in general has very corrupt leadership which doesn’t so much make provisions for the population as seek to profit from them. It will require a proper political revolution to change.