Productivity as palliative

Evidence abounds that this populist measure from the two states could depress labor productivity even further for years to come unless urgent policy action is taken.

Empathy is great, but hardly a solution to economic problems or crises.

The level of productivity of a State or country is the most fundamental and important factor determining the standard of living.

That is why reducing the working hours in Kwara and Edo States from 40hour-week (5 days) to 24-hour week (3days) would have unintended consequences.

The new minimum wage will obviously not come from the fruits of labour and therefore may not be sustainable. Federal allocation is almost extinct in a country that spends 96 percent of its revenue on debts servicing.

As supply rises with productivity, it decreases real prices and increases real wages.

Our ancestors are fully aware of this simple fact which is why they married lots of women; had lots of children to increase farm hands and raise productivity. It was the sole reason for slave trade, to secure cheap labour and raise productivity.

Productivity levels in emerging markets and developing economies have remained less than 20 percent of the average in advanced economies, and a meagre 2 percent in low income countries,” said World Bank Vice President for Equitable Growth, Finance and Institutions, Ceyla Pazarbasioglu

The consequences

Unfortunately for income growth and poverty reduction, productivity growth has been in decline globally, and in emerging market and developing economies. This has been the case since the 2007-2009 financial crisis, the steepest, longest and broadest productivity deceleration of recent decades, according to Global Productivity: Trends, Drivers, and Policies.

Evidence abounds that this populist measure from the two states could depress labor productivity even further for years to come unless urgent policy action is taken.

It will have knock-on effects as private sector workers will demand same from their employers.

It would have been nice to provide affordable public transportation and strengthen/deepen use of technology. In other words, to do everything to raise productivity which is important to poverty reduction. The government would have ensured that it’s efforts at raising productivity through processes such as remote working, and virtual classrooms mature before embarking on this move. How many workers and students have access to computers?

But these measures would require thinking, planning, doing and dedication and hard work to accomplish.

Things black people avoid like plague.