You are here: HomeWallSayIt Loud2018 06 11BAWUMIA IS A KEYNESIAN ON STEROIDS: DANGEROUS (Yaw Konadu)

Comment: BAWUMIA IS A KEYNESIAN ON STEROIDS: DANGEROUS

Author:
Yaw Konadu
Date:
2018-06-11 00:56:35


WHERE IS SENIOR MINISTER YAW OSAFO MARFO?

Let me make it clear, and I believe I have said this before, that I am NOT AGAINST PUBLIC WORKS.

In the short run, Keynesian notion of Public Works can work magic for an Economy. However, policy makers must always be careful not to overstretch the model or else they bring inflation and stagnation to the economy which will then lead to massive unemployment.

When the NPP, led by Bawumia, announced the Graduate Employment program, I welcomed it but at the same time criticized it on two grounds. First, it was discriminatory since it did not include unemployed non-graduates. Second, we are not told what the deliverables are except DIGITIZING and some other obfuscating "yappings".

Now, the NPP had heard my first criticism and decided to include non-graduates but guess what? THEY ARE INCREASING THE PROGRAM SIZE from 100,000 to 180,000. Again, we have no deliverables and no timelines.

Apart from the inflationary pressures that this program will create in the economy, this program has the potential of DEMOCRATIZING Poverty by SUPPRESSING WAGES in the country.

If government is going to pay GHC700 per month to every person in this program, where is it going to get money to give established Public Sector Workers a pay increase? Given this scenario, the private sector employers whose wage increases tend to follow the government's increase will have no incentive to raise private sector workers pay.

You see the vicious cycle that this reckless policy is about to create?

Again, let me state that I am not against Public Works in the short run but we must be reasonable. We don't have to follow Lord Keynes and say that in the long run, we will all be dead. This refrain has cost many countries dearly.

Already, the Cedi was under pressure in the past days. It is a sign of things to come.

Read on:

*https://www.ghanaweb.com/GhanaHomePage/NewsArchive/Government-to-provide-180-000-jobs-for-graduates-non-graduates-Bawumia-659116

Peace

YK

Your Comment:
Subject:


Your Name:


 
 
Comment to Topic
06-11 00:56
Yaw Konadu
06-11 01:31