STILL ON MY ISSUES WITH BUHARINOMICS - I am really amused that I have been vilified by people in both parties for my short critique of GMB'ss economic policies yesterday.
It was hilarious but that is irrelevant. I will now expand on my reasons for asking if this is Buhariomics or Insanitynomics.
Lets have an intellectual debate. If you have nothing cerebral to contribute, please simply read and learn from all sides of the debate.
I am not saying i am right (afterall i don't consider myself an economist. I am just a lawyer and digital marketer. But I have read a lot on possible solutions to our economic recession. So here is my view...
ITS NOT ROCKET SCIENCE - The MOST DIRECT WAY to get an economy out of recession is to INCREASE GOVT SPENDING, INCREASE DISPOSABLE INCOME OF THE MASSES OR CUT TAXES SO THAT INCREASED SPENDING CAN STIMULATE MORE ECONOMIC ACTIVITIES....
In Nigeria, somehow the egg heads in our ministry of finance and our economic management team have decided the way they want to get Nigeria out of recession is to CUT GOVT SPENDING and REDUCE SPENDING POWER of the People.
Which begs the question: Where is the increased economic activity to stimulate economic activities going to come from.?
How RETARDED is that?
All they need is pick up a basic book and economics or go into history to find out how other governments have done it. Even if Govt does not have money, it borrows in times of recession to spend in the economy to stimulate economic activities....
By increasing government spending, government stimulates production activities. The continued production benefits people by giving them wages, interest, rent, and profits.
In the end, people's income and buying power increase. When spending power increases, even more economic activities are stimulated
In our own Buharinomics, instead of spending more and increasing the purchasing power of the people to stimulate more economic activities that will eventually bring us out the depression, the Govt keeps implementing policies that will REDUCE spending power -i.e. Increase in price of petrol, increase in Power charges, Stagnant wages etc. while Govt refuses to spend....
By the way this is not about second guessing myself on supporting election of Buhari, that was the ONLY choice anyone who loved Nigeria could have made AT THE TIME with the way the Jonathan Govt was going.
I am also not one of the dreamers who expect the economy to become solid again in less than 2 years after the orgy of looting that happened under GET, but the policies this Govt is pursuing at this time will PROLONG our journey in the wilderness of recession. We the dissatisfied Buharists are sounding the alarm loud and clear.
We love GMD and the cultural reorientation that he is doing, but the economic policies of this government is unsatisfactory to say the least!
Written ByOpe Banwo