Thursday, January 2, 2014

17. Youth subsidy

At best it is a short term solution. The longer term solution is economic growth. Economic growth is actually not difficult to achieve. Remove the obstacles in the way of economic growth. Individuals will take the actions reqired. What are the obstacles to economic activity and growth? In South Africa there are just myriads and myriads of these obstacles. Many are relics of a colonial and Apartheid past and many of these obstacles have been placed on the statute books by a government with good intentions but that have a limited understanding of Free Market Capitalism. I dare the government to take a small area in a depressed area - say rural Transkei and remove ALL impediments to economic activity - no labour legislation, no zoning requirements, no permits, minimum tax, and even legal marijuana, and so on. Ensure that effective and efficient policing and legal processes exist to ensure that any use of force (slave labour, child trafficking, theft, fraud) is controlled. I guarantee that this area will become the most prosperous and wealthy part of the country in a very short time.

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