Are Minimum Wages Moral or Immoral?

Two situations have raised the profile of the issue of minimum wages into the spotlight once again. First it was the government tabling a proposal at Nedlac regarding minimum wages and much more recently, the Social Development Minister, Bathabile Dlamini claiming that a grant of R753 per month is sufficient for social grant beneficiaries to buy food as well as additional non-food items. Incredulity is the more polite response that Bathabile has received.

Disregarding the emotional issues, the quasi Orwellian agenda of denialism and the dismissive tone, what is the social effect of minimum wages on a country?

Main picture: The Shark Rock Pier in Port Elizabeth. All of the photographs in this blog are that of this pier

Continue reading

Zimbabwe: Quo Vadis?

Only 700 000 people among a population of 13 million have formal jobs, less than at independence in 1980. Many of those jobs are in the bloated civil service & military and are clearly unsustainable. Ninety percent of jobs reside in the informal sector, where reliance on diaspora remittances remains crucial. Compounding the problem is that 80% of government revenue is spent on civil services wages; hence no maintenance of any kind but the most rudimentary is possible.

Has the tipping point been reached?

Signs abound everywhere.

Main picture: Farm invasions destroyed agricultural production converting Zimbabwe from an exporter to an importer of agricultural products.

Continue reading

Could South Africa learn from Road Running?

Today’s race at the National Botanical Gardens in Pretoria was no exception. Again I was surprised by what I learned except that it was not from a South African but a foreigner who has been in South Africa for only nine months. One is not accorded a special status in road running. All runners are equal. Unlike the public discourse which is characterised by divisive racism, violent political rhetoric and the politics of rage especially by the EFF, road running does not suffer from these travails.

Main picture: The entrance to the Willows resort in Port Elizabeth. Instead of inserting some arbitrary pictures onto this blog, I have included photographs of Willows Resort near Port Elizabeth because as youngsters we spent many an Easter Holiday there.

Continue reading

Active versus Passive Funds: Is the Debate Finally Over?

Certainly Warren Buffet, an investor par excellence, has been beating the drum of Passive Funds with elevated vociferousness recently. In South Africa, most commentators hedge their bets with a paucity of actual statistics to back their case. A recent article by Patrick Cairns does just that as he nails his mast to the Passive Funds wall.

Main picture: It is your money and your future that is being invested in. Fund Managers will always steer investors towards Active Funds for self-serving reasons: their commission

Note: I have used the term Passive Funds to denote Index Funds throughout

Continue reading

Zimbabwe – The Final Countdown

After many false alarms regarding Mugabe’s ultimate demise, could the next year finally witness the final dissolution of the Mugabe’s Regime? It goes without saying that one of the factors could be biology – Mugabe’s superannuation – but ignoring that possibility it is most likely the economic dimension that deposes him. What are the numbers behind this bold prediction?

Main picture: Burchell’s zebra in Hwange National Park, Zimbabwe. Photo by Ariadne van Zandbergen

Continue reading

NO! They will Never Learn

After last week’s Opinion Piece on the folly of using obnoxious racial terms especially in South Africa, one would have expected such outbursts to only be the preserve of the callow youth, the mentally retarded or the morally challenged – to use a non-PC term. After an honours student was exposed for using the K-word, I expected a period of quietitude on the racist rant front for a while. I did not bargain with human nature, except that the culprit this time is somebody who is not a bottom feeder in society but rather an exalted high court judge, Mrs Mabel Jansen.

History repeats itself again.

Let us consider some other examples.

Main picture: High Court Judge, Mrs Mabel Jansen

Continue reading

Mugabe’s Legacy after 36 Years in Power: The Tragedy Unfolds

Almost forty years ago – 39 to exact – I worked for Price Waterhouse in Rhodesia as it was then known. The objective was to complete my articles while at the same time avoiding military service – the interminable “camps” – in South Africa. What this interlude provided me with was an insight into Rhodesia that has provided context for much of what has occurred since independence in February 1980. Is the end game in sight?

Main picture: The recently announced “Bond Notes” will ultimately become as worthless as the billion Zim dollar note

Continue reading

Who could imagine a Burka coming in handy?

The SAS did. Since their inception during WW2, the SAS has been involved in numerous audacious missions. After narrowly escaping closure at the end of the war, they established the relevance in the Iranian embassy siege and during the Falkland’s war. Currently they are deployed in Iraq, Syria and also in Libya.

Main picture: The SAS squad disguised themselves as ISIS commanders’ wives to infiltrate Raqqa

Continue reading

Will the real Julius please stand up?

Julius professes to be South Africa’s premier corruption buster yet he is implicated in financial imbroglios with Brett Kebble whilst a member of the ANCYL. Julius pays homage to the poor at every turn yet he himself dresses in faux Gucci style Tuxedo at an EFF party in Sandton immediately after the Manifesto launch as if his forbearance in having to dress down with his beloved poor had to be erased. Malema bemoans fraudulent leadership votes yet he himself rose in the ANCYL using those tactics.

Main picture: Members of Julius Malema’s Economic Freedom Fighters (EFF) (in red) clash with security officials after being ordered out of the chamber during President Jacob Zuma’s State of the Nation address in Cape Town, February 12, 2015. The opening of South Africa’s parliament descended into chaos on Thursday as security officers fought with far-left Economic Freedom Fighters (EFF) lawmakers after they disrupted President Jacob Zuma’s speech.

Continue reading

When Will They Ever Learn?

Perhaps I am revealing my age when the latest incidents of “foot-in-mouth” disease went viral. In what can only be described as serendipity, I recalled these words in the first verse of an old classic by Peter, Paul and Mary entitled “Where have all the Flowers Gone?”

Where have all the flowers gone, long time passing?

Where have all the flowers gone, long time ago?

Where have all the flowers gone?

Young girls have picked them everyone.

Oh, when will they ever learn?

Oh, when will they ever learn?

Continue reading