Something for nothing: Part III
The Economist magazine reports that the official unemployment rate in South Africa is 26 percent but that the real unemployment rate there may be even higher. The South African economy is growing. Why then this extremely high unemployment rate? What is going on?
What is going on in South Africa is what has been going on in other economies with huge problems. Somebody could not resist the lure of something for nothing.
Minimum wages in South Africa have been set higher than the productivity of many workers, so employers have no incentive to hire those workers, even though such workers are perfectly capable of producing much-needed goods and services.
Thomas Sowell
Well, well, well. Dr. Sowell chimes in with some well-timed information on government set minimum wages and the inevitable unemployment and outsourcing they cause.
What is going on in South Africa is what has been going on in other economies with huge problems. Somebody could not resist the lure of something for nothing.
Minimum wages in South Africa have been set higher than the productivity of many workers, so employers have no incentive to hire those workers, even though such workers are perfectly capable of producing much-needed goods and services.
Thomas Sowell
Well, well, well. Dr. Sowell chimes in with some well-timed information on government set minimum wages and the inevitable unemployment and outsourcing they cause.
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