30. Nationalisation

Money earmarked for the poor is used to bail out State owned SAA. A must see video: https://www.youtube.com/watch?v=8HECbxH3ccw

Read this. I would appreciate your comments.

I saw the following "benefit" of Nationalisation in Peter G. Moll's book titled "The Great Economic Debate" :(In the US) It is nevertheless clear that the salaries of top managers of parastatals are much lower than thiose of top managers or owners of private corporations. At the other end of the scale, the wages of government employees in the USA are estimated to be 10-15% higher than in private enterprise, even after taking into account of education and skills levels. The USA is probably not unique in this regard; similar figures could be found for most societies. Thus it is possible that nationalisation in South Africa would reduce income equality within the enterprise."p 101

Link to slides:

https://sites.google.com/site/savideovarsity/economics-1a-slides-11-july-2015/eco-1b-slides-on-nationalisation-the-ideas-behind