FLASHBACK: Demands for salary increment can only be met by printing money – Prof. Adei

Economist, Prof. Stephen Adei, stated that demands for salary increments can only happen if Ghana prints new currencies.

“At this moment, the government’s projected expenditure in order for the economy not to collapse is such that the government has to reduce expenditure by 20%. And already, debt servicing and public sector wages take about 95 to 98 percent.

So yes, I have no doubt at all that, given the economic circumstances, the price increases, the petroleum prices, workers are having a hard time. But I can’t see how the government can pay any significant increase now, other than printing money,” he stated.

Read the full story originally published on April 28, 2022, by GhanaWeb

Renowned Ghanaian educationist and economist, Professor Stephen Adei, has opined that government should consider printing more money to enable them to increase the salaries of public sector workers.

Sympathizing with the agitating workers due to the current inflation rate and economic hardships, Prof. Adei noted that this was the only viable alternative government has.

Speaking in an interview on JoyNews, he said, “At this moment, the government’s projected expenditure in order for the economy not to collapse is such that the government has to reduce expenditure by 20%. And already, debt servicing and public sector wages take about 95 to 98 percent.

So yes, I have no doubt at all that given the economic circumstances, the price increases, the petroleum prices, workers are having a hard time. But I can’t see how the government can pay any significant increase now, other than printing money”, he stated.

However, the renowned economist stated that the printing of more money may result in inflation since there will be no corresponding productivity, therefore government must think through thoroughly to address the issues.

His calls come after various worker unions and trade unions have called for increments in salaries.