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Would the labor for the private clubs still be cheap if the money stayed in Bali?
by southerndrift 7y ago
Would the labor for the private clubs still be cheap if the money stayed in Bali?
- malandrew 7y agoI 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 agoI 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.