The Macroeconomic Lesson Our Politicians Missed.

Here's a family of five--dad is a teacher, mom is a nurse and two of the kids are just starting secondary school and the third child is in basic school. One day mom and dad decided to send their kids to a private school where they have to pay ten times what they are paying in the public school system. Their salaries combined is not enough to afford that, but they go in for a high interest loan thinking it will help the kids long-term and they might recoup it when the children start working after school. 

5 years later, the twins are yet to go to the university and their parents don't have enough money to send them both and lacking the credit-worthiness to take another loan. 

So, what should they do?

Both parents decide to reduce the amount of money they spend on food. Instead of eating three times per day, the children are now told to eat only once and drastically reduce the amount of food they consume. Mom and dad, however, continue eating three times everyday and even increased their portion sizes. 

Sounds familiar?

What successive Ghanaian governments have failed to realize is that economic management is not just about strutting hallowed university campuses to deliver nice speeches lacking tact and commitment. 

Constant borrowing by government is indicative of incompetent economic management, and you can't tax yourself out of debt. Using debts to buy goods and services today means you are borrowing future income (which is not even guaranteed). 

Like the parents in my little story, the Akufo-Addo led NPP government have failed us and is now trying to starve citizens to death in order to survive. Free SHS solved all our problems. Covid brought every problem back and now E-levy is presumed to be a silver bullet. 

The truth, my countrymen, is that on the 7th of December, 2016, we elected the most incompetent, corrupt, clueless crop of politicians ever to manage this country. 

The lesson missed?

A lender will only lend you money beyond your ability to pay if it comes with a ridiculously high interest that enables him to recoup the principal within the shortest possible time. That's the sort of loans Ken Ofori Atta has been securing for Ghana and celebrating with Kenkey parties. 

The next government will inherit a public purse with 110 holes in it. 

By Stan Dugah

StantheStoryTeller

+233505615705

29/01/2022