I got this excellent question which I thought was an important question to answer considering the state of the Country of South Africa.
Hi everyone. In SA I always wonder how an ordinary person “employed or not” can contribute to bring positive change to our inflation?
A. Here is my answer…
As an economist, I can say in theory it is possible to bring positive change to the inflation rates but in reality – with corruption – I’m not sure it’s that easy.
Also, it’s the butterfly effect where we need to come together as a community (country) to work towards lowering inflation.
So on the one hand, there needs to be less spending unfortunately. Here are a few measures I can think of…
#1. Lower non-essential spending.
People need to stop spending unnecessarily on products and services and instead start saving more for their future. This will hamper and reduce the impact of inflation.
#2: Support your local places!
This world is becoming highly globalised not only where the rich get richer but the TOP stores and shops get richer too.
As a community, we need to start supporting the local businesses that have great quality products and services to.
We need to be more friendly to each other and help spread awareness to the small but great man. This will help stimulate the local economy and bring on more job creation and economic growth.
#3: More investments in education
Education is key to help bring personal development and skills training. We need to educate our fellow people on business skills, high income skills, programming, AI, machine learning, savings, risk averse investments and encourage more businesses to help grow.
#4: Save more to invest more
When inflation is high it means people were spending uncontrollably which pushed up demand and lowered supply. Instead, we should encourage more savings in stocks, property, trading, funds, and personal finances to reduce the effects of inflation.
Instead of drinking sorrows away, spending on games to bide time – focus on less spending and more saving for the future – reducing the debt levels.
#5: Invest in renewable energy
Load Shedding is here to stay. And so we need to try to support more renewable energy initiatives that come about. Solar, wind and gas. This will definitely help reduce the cost of energy and curb inflation. As I said, we can only do our part and hope for the best. We are a nation with hope, optimism and trust. But instead of just trusting the government we should also learn to support and trust our local businesses and methods to living a better life.
Hope that helps.
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