In a quiet moment it’s not hard to imagine the despair of slaves who once laboured at Robben Island.
Last week the national treasury formally released the findings of a two-year review of growth in the South African economy by a Harvard-led international panel of economists and their recommendations for the formulation of government’s economic plan.
The world is becoming increasingly unequal with 10% of the world’s population now owning 85% of the wealth. South Africa is one of the biggest contributors to world inequality with a growing gap between haves and have-nots. The social grant system was introduced in an attempt to narrow this gap but it exacerbates it by supporting those who live in and around urban areas.
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/ 29 January 2008
Following the bread price-fixing scandal at the end of last year and the further recent increases by the large bread producers, there have been several calls for government to intervene in the market for bread. The argument against government intervention is that it distorts the market allocation of goods and services. When a good is in short supply, buyers bid up the price.
Last year saw a return to market volatility levels previously experienced in the recovery years of the 1990s’ dotcom bust. Markets are always volatile when there is uncertainty and there is much uncertainty right now — led by developments in the United States and European economies.
After the inflation target was breached, the Reserve Bank was widely seen as justified in increasing interest rates early in June for the fifth time in a year. The question is less whether it should have done so, but whether we have chosen the correct inflation target.
Scores of teachers who work far away from their homes are faced with the difficult dilemma of having to choose between keeping their jobs and being able to support their families, and quitting their jobs and facing economic ruin. Both are difficult calls to make.