T&T’S WEALTH GAP EXPANDS

WHILE the masses are engaged in another round of political bantering, the elite corporate class has added to their already bountiful wealth. 

The nation’s upper crust has expanded the huge divide between rich and poor in increasing their vast prosperity.

Brand-new financial reports by conglomerates reveal massive increases in profits.

In a land where the economy has shown only a slight spurt after a decade of steady declines, it means the corporations are taking business from smaller operatives.

Between 2019 and 2023 alone, there a 6.4 per cent decline in the national economy, and experts forecast that it will take at least a decade to return to the 2015 level.

The cost of living crisis (some food staples have increased by 80 per cent over the past decade) and growing poverty (estimated at 25 per cent) have impacted domestic purchasing power.

With their economies of scale, the conglomerates are creating monopolies, dictating prices, dominating media marketing and advertising, securing lucrative contracts, and utilising influence to win political favours.

The AnsaMcAl conglomerate has just reported a staggering after-tax profit of $594.5 million for 2023, compared to $265.8 for the previous year.

The profit was built on the highest-ever revenue of $7 billion — $600 million more than the previous year.

The group, which is involved in eight business sectors, is aspiring to a profit of $2 billion in 2027.

There are more than 50 companies in automotive, beverage, distribution, financial services, manufacturing, media, retail and financial services. 

Guardian Holdings has reported an after-tax profit of $696 million for 2023 – a whopping 48 per cent increase over the previous year.

The diversified corporation did well in all its markets and is positioned for further growth.

Massy Holdings heaped an after-tax profit 2023 of $833 million, 21 per cent above that of the previous fiscal year.

Agostini’s earned $313.3 million in post-tax profit for its most recent financial year, 64.2 per cent more than its previous year.

The group has a virtual monopoly in the importation of pharmaceuticals and also operates nine strategically located pharmacies and convenience stores.

Prestige Holdings, which dominates the fast food market, had a 54 per cent increased profit over its latest reporting period.

All the big businesses are confident of additional expansion, which, of course, would redound in greater profits and tighter dominance of the economy.

Families of the founders and associates control most shareholding in each conglomerate.

The sector accounts for only 18 per cent trade in the Stock Exchange, with most traders being deep-pocket business elites.

Hefty profits are, therefore, lapped up by business fat-cats.

The concentration of wealth is taking place while the small and medium-sized enterprise (SME) sector faces an existential on the weight of relatively high operating costs and the crime crisis.

Along with other sectors, manufacturers and retailers are under stress to survive, the result of cost disadvantages in competing against business giants.

Just five years ago, small and medium-sized enterprises accounted for 95 per cent of all businesses, contributing more than 40 per cent of the Gross Domestic Product (GDP).

The sector has never recovered from the body blow of the two-year Covid-19 shutdown, while conglomerates jumped into their fields or expanded their presence.

Trade Minister Paula Gopee-Scoon has termed the SME sector the “backbone” of the national economy.

But this has not been supported by an enabling environment of financial and technical aid.

Today, business sharks are raking in historic returns and their shareholders are sporting fat wallets, while sardines struggle to stay afloat.

As the wealth gap expands, conglomerates are set for even greater profits, while the suffering masses are engaged in senseless squabbles among themselves.