Single digit inflation is meaningless

Quite recently the government of today (P/NDC) through his Minister of Finance announced that the government has now achieved the single digit inflation figure that he has been working for.

Economics defined inflation as persistant and appreciable rise in general price levels without proportionate increase in goods and services. Looking carefully at the definition it means that during NPP government's tenure of office, prices of goods were increasing without corresponded increased in goods and services. We give credit to Mills government for his great achievement.

Although single digit inflation has been achieved, and it is meaningless. It is rather unfortunate that Ghana educated elites who believe to be experts in economics were not able to advise the Minister of Finance and his government on the right strategy they would have adapted to curb the inflation upon all their doctorates and professorships they believe to be acquired through virtue.

Even a layman in the street knows that, if the government stops spending, increased taxes, put embargo on employment, increased utility bills, it is likely to curb inflation because more money will be drawing from the society but no corresponding services being provided in exchange of what the public has offered to the government.

Over here what I mean with the government spending is that, the government has stopped financing important projects and other liabilities. Projects like roads, schools, hospitals, public utilities, etc have come to a stand still since NPP government left office.

Some of the liabilities of the government are to pay salaries, allocating budgets to districts and municipal councils for them to provide social ammenities to the communities, and also renewing business contracts with its business partners.

Since the government began with his inflationary curbing agenda, he has stopped looking at the above mentioned commitments, even though all are his responsibilities.

As at now, refuse are found all areas in the country including the capital of Ghana, but because the aim of the government is to cut down his expenditure there is no need of removing filthy from the communities. If he does that much money would be spent on fuel and wages, and that will raise the inflation barometer high.

Because of inflation, P/NDC government has stopped renewing the contracts between (GIA) Ghana International Airlines with its business partners " the co- shared flights" which carried the GIA passengers to their final destinations where our only airline could not reached, and as a result of that our new and the only hope airline is dwindling and the collapse of the airline has estimated to cost Ghana US$ 63 million.

The reason is that the government does not want to spend more in that outfit to raise the inflationary barometer.Not only that, but workers of GIA have not been paid since last four months.

Because of inflation, the government of today has placed embargo on certain jobs up to the period of two years so that salaries and wages would not raise the inflationary barometer.

Unfortunately many university graduates are finding it difficult to get something to do. The only job opens in the country are found in teaching and after being employed it takes not less than seven months for them to receive their first salaries.

Because of inflation the government has stopped building schools, hospitals and roads with fears that they could cause the inflation barometer to rise.

When we go through the analyses does it make sense to praise the government for achieving the single digit inflation? Shall we call it an achievement where filthy are found everywhere and workers salaries are not paid?

If that is an achievement then the finance minister is incompetent and he has to resign.

During Kufuor's tenure of office the government looked at all his responsibilities and at same time the above mentioned outfits were functioning effectively. In one of the districts in Ashanti, refuse dumping area was found in the centre of the city and it was there for more than forty years.

When NPP government came to power he tried to relocate the refuse dumping area with tax payers money and demarcated the area for market and stores, but because many of us are short sighted and ignorant,we thaught he was leading us to hell.

During Kufuor's period, we were experiencing inflation but lives were improving because people were getting jobs to do to take care of their families, sub contracting works were awarding to Ghanaians irrespective of one's political affiliation, but the devils in Ghana were able to convince the masses with inaccurate information to demonize his government and eventually voted out his party.

Many Ghanaians believe that in year 2008, the rate of inflation was 18% and that was the highest rate after reducing it from 40% in 2001 when he took over from P/NDC.

In the same year 2008, the economy recordered the highest growth 7.3% of which the propagandas said it was a sham.

According to CIA research, in 2009 the economic growth in Ghana was 4.7% ,but this year would be worst because of government's stingy measures.

This tells us that certain level of inflation is good for a country even if it is not a single digit.

I hope the economists and scholars in Ghana as well as the world at large would use Kufuor's tenure of office for references to defend their thesis and dissertations whenever they are challenged to provide evidence to substantiate their writings concerning "curbing inflation and its effects on economic growth".

May God bless our home land Ghana.