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Developmental Economics and Sustainability

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@errolbsk Or someone who will run as an independent next year?

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@proforlax By that statement I gather that have not read Moral Sentiment. And frankly your understanding of wealth of nations reflects a secondary interpretation at best.

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@proforlax That's a normative statement. We earn depending on the factors of production we own /control and how much we earn is determined by the demand and supply of that factor.

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@proforlax @bcschutte @SihleMaseko16 @MagnusHeystek I strongly disagree with this. Without minimum wages and a traditional sector that is no longer sufficiently able to support the unemployed, the incentive to invest in capital falls out the window. Minimum wage motivates industry to invest in capital. More capital, higher growth

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@proforlax @bcschutte @SihleMaseko16 @MagnusHeystek ...but a gradual movement towards exceeding a living wage so that savings increase (Harrod Domar) and spending in underserved areas in the economy increases.

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@proforlax @bcschutte @SihleMaseko16 @MagnusHeystek The effective and efficient [Re]distribution of resources is literally how countries develop. The growth comes from an increase in spending and investment in areas that don't see investment or spending by the wealthy. I'm not advocating for an overnight jump in wages...

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@SihleMaseko16 @proforlax @bcschutte @MagnusHeystek They will. The case just needs to be made that its an investment into new markets. Secondly the supply of labour restrained, because a decrease in supply increases the price (wages). I suggest self-sufficient sustainable communities that can absorb excess labour.

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@proforlax @bcschutte @SihleMaseko16 @MagnusHeystek My bad, I meant Lewis model.

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@proforlax @bcschutte @SihleMaseko16 @MagnusHeystek The SA economy has major structural issues preventing high growth. It is characterised by monopolistic industry and wealth concentration. My thesis is that increasing the wages high enough to increase the savings rate will fix some of those issue a la Harrod-Domar

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@proforlax @bcschutte @SihleMaseko16 @MagnusHeystek I'm assuming you mean M3-(M2+M1), either way, by increasing the money supply there will be inflationary pressure if growth cannot keep up. But you are correct about the redistribution effect and that is exactly what I'm saying the solution is to growing the economy.

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@bcschutte @SihleMaseko16 @proforlax @MagnusHeystek For the modern sector when it draws Solow model labour surplus.

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@bcschutte @SihleMaseko16 @proforlax @MagnusHeystek Also, an adapted Solow growth model making an assumption that modern sector to traditional sector transfers occur (e.g. "Black tax") some of which is used to increase human capital in the traditional sector. Thus increasing productivity and structural suitability...

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@RobForbesDJ Have you heard of a ripple switch? It's what Eskom demand management used a few decades ago to do exactly that.

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@CDisillusion I wonder if that Berlin oufit that actually invented it is still around?

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@dwaine_van It's what was done in the 1970s, a ripple switch. Your outrage exposes your lack of knowledge, or unwillingness to learn.

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@clivesimpkins Manufacturing outrage?

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@clivesimpkins This is highly disingenuous! You cut the second definition from the same dictionary which defines scavenger "a person who searches for and collects discared item".