How to draw conclusion on Vavi’s R4,500 minimum wage

Vavi has disappointed me with his call for a R4,500 minimum wage. There is no question that higher pay is better, all else being equal. I expect the overwhelming majority of eyes that have ever glanced at this blog belong to beings that earn more than R4,500 a month. There is no question that lower […]

Eskom, inflation and early onset dementia

Everyone has totally lost the plot. The proportion of people who speak sense has declined to the lowest level recorded since ever. “If Eskom puts up its prices too high we’ll have higher inflation. Inflation is bad therefore Eskom shouldn’t put up electricity prices so much.” Oh really? What happens to the cost of producing […]

Credit Suisse annual update on market performance

Credit Suisse has for several years now put out an annual¬†Credit Suisse Global Investment Returns Yearbook 2013 is out now. It’s worth reading in its entirety for the insights. I don’t agree with everything there, and I certainly don’t agree with the widely held view (not among the authors) that the universe of countries included […]

Does being richer make you feel better than being cooler?

Economists (and actuaries) like to measure things. The easier to measure and the more reliable the measure, the more we like to measure it. This is not unlike the drunk looking for his keys under the street lamp because that’s where the light is even if it isn’t where he dropped the keys. Sometimes the […]

Worrying signs of renewed credit crunch

The last month hasn’t been pretty for economic performance, credit or retail sales. Everyone from Richemont to Mr Price has taken a beating.¬† Woolies is down about 13% in the last month. And now both Capitec and African Bank are reporting worse default experience (respectively through temporary strike-blips or through a cyclical downwards trend) and […]