Thoughts on “Solutions to Economic Crisis” (Part 1)
By Baak Chan Yak Deng, Juba South Sudan
March 21, 2017 (SSB) — As I said in Monday’s article that government needs to stop emphasizing the need for austerity and hard times. Yes I agree on ‘growth’ but we don’t understand how to achieve sustainable growth. This can only come from either continuing to increase the South Sudan’s population or by continuing to improve efficiency.
The first is clearly impossible as we would bust at the seams. This means the only choice we have is INVESTMENT and in the RIGHT areas. Our politicians and most economists do not understand this. I believe that I have some of the answers.
Investment is a good idea however, going back to basics, investment alone will not stimulate the economy, and firstly you need real demand for products and services. That comes from me and you the consumers providing there is the disposable income available, with wage restraints and uncertainty in the economy this will take time.
Funny money or quantitative easing is always a last ditch attempt at stimulating the economy, this coalition has injected approx 325 billion pounds through the banks to provide some stimulation, we can clearly see it has not worked out. Cut out the middle man “the banks” and target the consumer with straight in to our bank accounts, 100,000 pounds each using our numbers through HMRC
Consumer spends generating real growth increased tax revenue for the government employers employ more people from extra demand on their products and services, this boosts confidence increases our good products in real terms and only through a growing economy can we then start to tackle the deficit.
Improve trading performance, I think what we’ve captured here is the need to focus on positive messages like Not make a big noise about austerity and tax raises but instead focus on ‘increasing GDP’. If the press could take this stance and stop trying to capitalize on doom and good headlines to sell newspapers it would have less chance of becoming a self-fulfilling prophecy.
I also believe that the welfare/entitlement culture we are now so used to needs to change. Not overnight but bit by bit people need to be weaned off it and become responsible for their own financial health and future.
If you look at developing nations like China and India and the work ethic and sheer hunger for expansion and growth – that culture needs to be fostered here somehow – and especially in southern Europe… At the end of the day politicians needs to stop spending money on votes, at least until they can actually afford.
The author, Baak Chan Yak Deng, is a graduate in Bachelor of Science in Accounting and Finance at Star International University of South Sudan Affiliate to Busoga University of Uganda and can be reached at baak.maker44@gmail.com or 0954020202
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