An economist, Prof. John Gatsi has to the recent figures on Ghana’s 29.8% cannot be good news for the country whiles calling on the government to institute drastic measures to arrest the situation.
According to the Dean of the University of Cape Coast School of Business, “Inflation reflects cost structure distortion and a painful downgrade of disposable income of income earners.” adding that “When the inflation rate is underpinned by transport, water and food prices then you should note that cost of living has become unbearable for average households.”
This 29.8% inflation rate is the same as Ghana recorded in 2003 when then President Kufour led Ghana to the International Monetary Fund for the Highly Indebted Poor Country (HIPC) Programme.
President Akufo-Addo’s government is also currently engaging the IMF for a bailout as the country dives into unbearable hardship which the government officials attributed to the Covid-19 and Russia-Ukraine war but many disagrees arguging that Ghana’s neigbours live in Ivory Coast with records inflation rate as low as 3.5%, Togo and Nigeria are all part of the global economy hence concluding Ghana’s situation is purely corruption and mismanagement.
Read Prof. Gatsi’s note:
Inflation and painful deterioration in living standards: humane actions and strikes
Inflation reflects cost structure distortion and a painful downgrade of disposable income of income earners. Thus, an inflation rate of 29.8% cannot be good news for Ghana. When the inflation rate is underpinned by transport, water and food prices then you should note that cost of living has become unbearable for average households.
The middle-income bracket is also complaining. Breakfast, lunch, and supper for Senior High School students have become difficult. The eating patterns of average households are deteriorating very fast.
Implementing government has become costly leading to the abandonment of projects and stagnation of business efforts.
Government and employers must show genuine empathy to cushion workers. COLA is the name. Disregarding the request by workers will inability to recognize the massive erosion of business capital and socioeconomic pains.
Strikes are expressions of painful experiences of disregard over a period of time relating to the erosion of the value of money.
Strikes may be signs of mistrust. The number of strikes must be treated with humane consideration of the demand of workers. Workers are nation builders and not beggars. The interest rate of 28% on average is out of range for Teachers, Nurses, and Medical Doctors among many workers. Something drastic must be done if not so average default in the banking and financial sector may scale up.
Let us revise our personal budgets to reflect the hardships and pains. We can not maintain the same budget with dwindling disposable incomes.