Ngandu Hisckia

In the intricate dance of economic growth, a pivotal question arises: should a country’s economy rely on increasing workers’ salaries as the prices of goods rise, or should efforts be directed towards stabilising or reducing the costs of goods? Striking the right balance between these factors becomes imperative for sustained and inclusive economic development.

On one hand, advocating for higher wages is rooted in the belief that an increase in disposable income empowers workers to engage more actively in the economy. When people earn more, they are better- positioned to meet their basic needs, contribute to savings, and invest in education or skills development. This, in turn, stimulates demand for goods and services, propelling economic growth.

Conversely, an alternative perspective argues that controlling the prices of goods is equally essential. If the cost of living continues to escalate, even with higher wages, it might erode the purchasing power of workers. In such a scenario, the benefits of increased salaries could be offset by the rising costs of essential commodities, leaving workers grappling with financial challenges.

The real challenge lies in finding a harmonious equilibrium. Governments and businesses must work collaboratively to implement policies that ensure fair wages, while simultaneously addressing inflationary pressures. Investments in technology and innovation, streamlined supply chains, and sustainable resource management can contribute to stabilising or reducing the costs of goods.

Ultimately, the key to sustainable economic growth lies in a nuanced approach which considers both sides of the equation. By fostering an environment where workers earn competitive wages and the prices of goods are managed responsibly, nations can aspire to achieve a balanced and resilient economy that benefits everyone.

* Ngandu Hisckia is a Bachelor of Education graduate from the University of Namibia.