Egypt: Indonesian or South African parallel?

Paul Krugman compares Egypt’s economic performance prior to its political crisis to that of Indonesia and the Philippines. He makes a compelling point that the comparison fails. Egypt’s economic performance has been stable and much better than, say, South Africa’s for example.  Krugman suggests: Egypt had decent growth — but the gains weren’t trickling down, …

Are our inflation figures fudged?

The economist magazine compares Big Mac inflation to officially reported country inflation over the last ten years. The aim of their article is to suggest that perhaps China and Argentina have been fudging their inflation figures. However, my attention was drawn to South Africa right near the top of the chart. This suggests that our …

BRIC is not going to be come BRICS

Different size, different growth prospects, different issues and decidedly different league. South Africa, in its current state with current policies and current trajectory is in no danger of making BRIC become BRICS (Brazil, Russia, India, China and South Africa). This recent article shows some relevant and credible people agree. Goldman Sachs Asset Management chairperson Jim …

Rent and prices shall be lowered

The Freedom Charter was adopted in 1955. It reflects the rejection of much of the status quo in South Africa and is the aggregate and synthesis of thousands of “freedom demands” from the population at that time. It is an inspirational document and reflects how bad things were for most South Africans at that time. …

There isn’t one labour market

I’ve heard it said (of the US) that there is no national property market, but rather than local property markets are relatively independent of each other. I guess this was more true before 2007 than it is today. Property in one area is a weak substitute for another property in a nearby area, and an …

Unemployment and education

It’s clear to me that the biggest and longest lasting impact of Apartheid will be the disastrous effect it’s had and is continuing to have on education. We won’t fix employment or economic growth or prosperity (and in a roundabout way many other social ills) unless we have a truly fixed education system. But, passing …

Causes of unemployment in South Africa

Recently I described how employment in South Africa is a totally different ballgame to that in the US, and as a result needs different strategies to fix. The starting point then is to understand the causes of our structural unemployment in order to figure out how to fix it. Why do we have high and …