106. Bastiat

"The Law" A MUST read for any serious student of Economics (and all Mancosa Economics students - especially MBAs) http://econlib.org/library/Bastiat/basLaw0.html

“We hold from God the gift which, as far as we are concerned, contains all others, Life — physical, intellectual, and moral life.”

But life cannot maintain itself alone. The Creator of life has entrusted us with the responsibility of preserving, developing, and perfecting it. In order that we may accomplish this, He has provided us with a collection of marvelous faculties. And He has put us in the midst of a variety of natural resources. By the application of our faculties to these natural resources we convert them into products, and use them. This process is necessary in order that life may run its appointed course.

Life, faculties, production--in other words, individuality, liberty, property -- this is man. And in spite of the cunning of artful political leaders, these three gifts from God precede all human legislation, and are superior to it.

Life, liberty, and property do not exist because men have made laws. On the contrary, it was the fact that life, liberty, and property existed beforehand that caused men to make laws in the first place.”

105 ?

wHEN i'VE GOT TIME i WILL DEAL WITH THIS http://econlog.econlib.org/archives/2015/12/labor_econ_vers.html#noredirect

104. Counterfeit is fraud. Fraud is dishonest and wrong.

If the government wants to eliminate counterfeit products and return to honesty, it should start with its own money system. If only one coin - say a R100 coin was manufactured from a metal that at a particular point in time was worth R 100 and this coin was freely convertible with the paper money, we will not have inflation, will have an honest currency and we will become a true and honest society.

The rationale behind an honest coin is that people will not care to be in possession of these coins while the paper money retains its value - a hundred rand note will be of the same value as the coin. But as soon as the note starts losing its value people would want the coin (either hoarding it or melting it). The only way then to counteract this is for the government to maintain the value of the paper currency - this can only be done by not creating more money than is warranted by the production of real goods, services and value in the economy. As soon as people realise that the paper money has regained its value and is the same as the coin again they will revert back to using the paper money again and be indifferent to whether they use paper or coin.

Such a "honest coin" will act as a discipline on government and severely restrict government in creating currency to finance politically expedient schemes. We will become an "honest" country. Honest in currency and honest in the values that we uphold.

Until we do this, politicians will create money to run their schemes - including running expensive conferences with NGOs, church leaders and leaders of the community to improve the "moral fibre" of the nation.

This in itself is a sham - gorging themselves on the money extracted from the poor through "inflation tax", tax and other schemes based on a dishonest fiat currency. The reason that the government will be reluctant to introduce an honest coin is that they know that it will cost them to maintain the value of the fiat currency - it is however that very cost that will act as an automatic brake to inflation. As soon as people start melting the coin because they can earn more rands that way than by using it at its face value, the government will have to spend more paper currency to purchase the metal to manufacture the coin - this will only act as break to inflation if the money supply is not expanded to make such purchases possible! Otherwise the price of the metal in relation to the currency will continue to increase. An "honesty coin" is a sure way of preventing government increasing the money supply. A freely convertible "honesty coin will keep inflation in check and signal a return to fundamental moral values. C.M. Heydenrych

December 2015

(articles on this website may be reprinted without alteration and with acknowledgement)

Here is another article on Counterfefeit:

http://sbeta.iol.co.za/news/south-africa/fake-food-products-snapped-up-by-the-poor-282154

103. Trade unions*

The following is mentioned in the school curriculum statment:

The economy

Trade unions

Concept of trade unions; business and labour; brief historical development of trade unions; the role of trade unions; the responsibilities of trade unions; the role of women in trade unions; contribution of trade unions to sustainable growth and development

I do not know what teachers have to say about the last sentence. I do not believe that they will give learners a balanced view. The statement itself is biased since we know that many trade union actions, while beneficial to their members are not beneficial to the country and the populace as a whole. One aspect that is particularly damaging is the minimum wages that big business and big labour force onto non-consenting parties. Many small businesses cannot afford to comply with the wage agreements forced on them by collective agreements of which they do not form part but have to comply with since the Minister of Labour has to accept and enforce these industry agreements. This is damaging to workers that wish to enter the market at lower wages just to get a foot in the door. This is one reason why we have such huge youth unemployment figures - they are simply not able to be accepted by businesses at the enforced high wage levels.

S32 specifically is the clause which compels the Minister of Labour to extend private bargaining council agreements across an entire sector to control the unemployed and companies, usually SMEs, which were not party to the negotiations and cannot afford to pay higher wages and offer conditions agreed by larger firms and unions. The FMF seeked to change just one word from “must” to “may”, to allow the minister to apply her mind to what she does, especially concerning the wider socio-economic conditions within an industry, and to think about whether extending an agreement will harm new and existing jobs.

It also affects special and designated groups - The only competitive advantage that a disabled person a young person or a woman has in certain cases, is being able to work at a reduced rate - in a free economy this would be possible - but where unions are able to dictate minimum wages, their competitive advantage is removed and they will not be employed.

Now with the National Minimum wage being introduced the picture is eaven bleaker for those on the bottom rung. They will find it even more difficult to find employment.

So if you are an unemployed graduate or unemployed younger person (or any unemployed person for that matter) your choices are being limited by these arrangements...arrangements that the government make with parties "because they have your interests at heart", then they blame "white monopoly capitalists" for the situation. C.M.Heydenrych February 2017

102. LONMIN

http://business.iafrica.com/news/1015272.html

101. The Gold Standard

From Wikipedia Havenga was a leading member of Hertzog's government and indeed with Oswald Pirow he formed the basis of Hertzog's 'inner cabinet' which controlled decision making.[2] As Finance Minister he was responsible for the decision to take South Africa off the gold standard, one that led to a significant economic upturn.[3] Havenga had formerly been a harsh critic of this move, reflecting populist opinions that gold-producing South Africa should refuse to follow the United Kingdom off the gold standard as a piece of nationalist posturing against the British.[4] In 1932 however rumours had been circulating that Tielman Roos was intending to split from the government over the issue and form a new party that would go into coalition with Jan Smuts, forcing Havenga to abandon his earlier stance to save the government.[5]

100. Ministers of Finance - South Africa

https://en.wikipedia.org/wiki/Minister_of_Finance_(South_Africa)