As a 17-year-old undergraduate taking Macroeconomics course (Introductory Macroeconomics – AGE 211) for the first time, I learnt that the goal of macroeconomic policies is the pursuit of full-employment equilibrium in the three markets (labour, product and money/capital). I particularly found the graphical illustrations of this goal interesting and this helped my understanding of a course that didn’t come natural to me like microeconomics.
In a country like ours where macroeconomic tools (fiscal and monetary policies) are under the control of national government and its agencies, it can be transitively stated that the primary role of government (at least economically) is the pursuit of full-employment equilibrium in the labour, product and money/capital markets. Since these markets are presumed to be in equilibrium state, the policies and programmes will change continuously based on the feedback from these markets.
If the primary goal of government is this unitary, one is bound to imagine that the task of governance cannot be easier. It is instructive to note that former President Donald Trump’s MAGA slogan was hinged primarily on the creation of employment for Americans. The promise of employment generation got him the Presidency and as President he delivered on his promise. He was on the path to clinching a second-term until COVID-19 happened. In essence, employment promise got him the job but COVID-induced unemployment cost him his job. That is the strength of economics.
It is, therefore, counterintuitive that politics is used as a tool to stifle economic growth and development in our part of the globe, when it should be an enabler. That our way of doing things runs contrary to reason is why our nation is adjudged the poverty capital of the world. However, it is noteworthy that we hadn’t always been cursed with bad leadership. At least we heard about one of our political leaders who said that to curb unemployment, he would employ people to dig trenches and employ another set of people to fill up the trenches!
The recent announcement by the LASG that it is introducing new buses to take operators of ‘Keke Marwa’ and ‘Okada’ out of business is rudely shocking. The golden rule is, ‘when you’re stuck in a hole, stop digging!’ Unemployment brought insecurity challenges, now we want to solve insecurity challenges by creating more unemployment. In solving problems, it is imperative for government at all levels to note that government has no business doing business. We must desist from the default setting of going on a purchase/acquisition spree in attempting to solve problems. It smacks of self interest and intellectual lethargy.
If truly idle hands are the devil’s workshop, let’s stop enlarging his army through the pursuit of unemployment.
“Idle hands are the devil’s workshop; idle lips are his mouthpiece.” Proverbs 16:27 TLB