Loading ...Is it only me, or does everyone else get the idea that Reserve Bank governor Tito Mboweni is adding up the right numbers but getting the wrong answer?
Every time the inflation rate rises, he sticks it to the consumer, blaming our spending habits for putting a strain on the economy. His reasoning, that there is too much money available to fund consumer credit, and that the money supply needs to be stunted through higher interest rates, sounds like dealing with one problem through a solution that is intended for something else completely. It’s like trying to run a Mac program on a Windows computer: it can be done, but that’s not the way it was intended to be used.
This is the way my mind sees it, and maybe it’s only me, but I suspect others think the same way. The interest rate itself, and especially regular increases in the interest rate, increases the cost of credit to manufacturers, distributors, transport operators, retailers, and everyone else involved in the supply chain. These costs are instantly passed on to the consumer, increasing their cost of living in a way that is completely out of their control.
So what does Tito do? Blames the consumer! Hikes the interest rate again! Starts the cycle again! And then blames the consumer again!
This is my plea to Tito: stop running Mac programs on your PC. It’s not good for you, it’s not good for consumers, and it’s not good for the economy. And get another calculator. Your existing one clearly is not adding up the right numbers.
- None
