Buhariconomics: Trickle Down or Build it from Below the Pyramid.

How do we pull the economy out of the recession?

Chart Reading folks in dark Suit will tell you: Hand the Economy over.

End capital gain tax. Drop regulations.

Hopefully, investments will hit new highs. New machines, Buildings among others means new jobs and a growing economy.

The incentive to trigger the cascade of the event is reducing regulation and creating a free world.

Allow Nigerians pay for everything. Higher electricity tariff, school fees, medical bills and toll roads are good for the economy.

Let market forces determine everything

The economy will fly along, jobs, 24 hours electricity, good roads, shining new rail tracks among others will follow.

The bankers and investment professional want the government to do absolutely nothing.

Investors and Bankers.

They want the central bank of Nigeria to do the needful without government intervention.

The needful is making investment attractive.

Kill inflation by reducing money growth and raising rates. They have great charts showing the wonders of lower inflation.

Of Course, higher lending rate and yield is exquisite for bankers and the investment communities.

Those with rusty machines and steel building think otherwise. We can do it faster.

How about lowering lending rates, cutting company income tax rates, tax breaks for manufacturers and protection to transform the economy?

Backward, forward and hybrid integration policy?

The idea is simply, Block everything and anything that will disrupt our ability to raise price arbitrarily.

Manufacturers want to own the market. They want tariff-free access to industrial feedstocks at the same time protections including neck breaking tariff to protect themselves.

They want cheap loans and investment but fight against raising the minimum wage.

The trickle down effect, the claim is jobs and economic growth as new factories, machines, steel buildings thrives.

The “working poor” and “have-not” thinks otherwise.

How about a “trickle up” flow of wealth?

Capital tends to flow up than trickle down in an economy like Nigeria

85% of the income of those below the economic pyramid is spent on essential activities including transportation, feeding, and accommodation.

The cascade of transactions from transportation, food, and shelter, returns back in one way or another to those on top of the pyramid.

The investment community and industrialist already control the food, housing and are twisting arms to take total control of the transportation system.

Any stimulus directed at those below the pyramid will “trickle” its way back to the men in “Agbada.”

Hence, policy interventions aiming to spur economic activity should work best if directed at the lower end, rather than throwing barrels of incentive at the fat top.

The mortgage refinances corporation, and AMCON is an example of supply-chain economics gone wrong.

Lending rates, flat housing market and accelerating cost of home ownership remains at historical high despite expending trillions of Naira on the largess.

How about a change in direction.

Imagine the effect of a program that set out to build 4million affordable red brick — single family homes every year.

We spend out N5.7tn bailing out the banking system.

Now, it is time to bail out the “working poor” and “have-not.”

It is time for trickle-up economic.

Show your support

Clapping shows how much you appreciated lloydatiku’s story.