REBUTTAL TO GHANA'S ECONOMY NOT IN CRISIS

Having perused Jake Addo's piece on "Ghana's Economy Not in Crisis," I have decided to respond with a rebuttal. Instead of Jake to sit in silence and pore on the brilliant and sage article written by Charles Kofi Fekpe, he has come up with a socialistic solution to the economic problem of Ghana. However, his theory is not new. It is an old ideology dressed in a new garb but would not provide any effective and lasting economic solution to the danger facing the nation. For instance, he writes, "If we want to create jobs for our people then it must be with monies that we have accumulated by taxing our workers to create jobs for the unemployed." Jake should take a hard look at the demise of Soviet Union. This was part of the downfall of Soviet Union. I don't know where he came up with this line of reasoning. How can you tax workers to create jobs for the unemployed? I want to submit to him that this bogus economic theory will not work in Ghana. First, when you tax workers and employers exorbitantly, you are likely to destroy creativity and innovation. Second, you destroy hard work and embrace indolence and a sense of entitlement. Third, you discourage competition in the work place. To put it bluntly, you cannot tax employers and workers to create prosperity in the nation. That is why some investors have relocated their businesses and companies overseas to countries that encourage tax breaks for investors and entrepreneurs. Furthermore, what Ghana needs is to encourage private sector investments in the country. The government alone cannot grow the economy. This means that the government should pay attention to providing uninterrupted electricity, good and accessible roads, clean drinking water, and quality healthcare for the people. The efficient implementation of these social amenities would attract investors. This would drastically reduce the massive unemployment problem in the country.

Jake goes on to assert, "Ghanaians think that an improved or growing economy or expanding economy must reflect in their pockets. This is not always so. A growing and expanding economy is one where jobs is (sic) being created for more and more people and not putting money into the pockets of those who are already working, but rather putting money in the pockets of the unemployed by creating jobs for them." From where in the universe did Addo get this faulty economic proposition? Why do people work? Why do people pursue academic excellence in institutions of higher learning? If an improved economy does not reflect in the pockets of workers, how can they fend for themselves and their families? How can they provide quality education for their children? How can they be motivated to work harder? If the economy is expanding or improving, it is reasonable to conclude that there would be sufficient money to go around for those who are already working. Those that become employed also would enjoy good standard of living.

Another flawed assumption or proposition that Addo advances is this, "Sometimes you need to reduce the purchasing power of those already working to create jobs for the unemployed." If any democratically elected government comes up with this hypothesis, I can bet you that government would be a one-term government. This line of reasoning is socialism from which the Soviet Blocs have weaned themselves. This socialistic propaganda did not work in the Soviet Union. Now take a critical look at what Russia used to be under the Soviet Union and its economic status today. If they used your suggestion as their Modus Operandi, the Russians would be demonstrating in the streets of Moscow today. This defective economic proposition would not work in any democratic nation. On the contrary, it would encourage poverty and kill industry.

Instead for Jake to divert attention from the ineptness of the NDC government at solving the economic crisis of Ghana, he should ponder on the brilliant economic ideas that Charles Kofi Fekpe has outlined. If I were a part of the NDC government, I would tap Fekpe as a part of the cabinet or a member of the economic advisory team for the president. Unless such a judicious course correction is taken the NDC government would drive the nation into economic catastrophe. Addo's solution is primitive and would sink the economy of Ghana into further deterioration.