LETTER: Orthodox economics works

I refer to Donald MacKay’s article (“Cosatu needs to stop shouting and provide practical means to cut unemployment,” May 2).

The problem with unorthodox economics is that it has almost collapsed the SA economy. The main point of discussion by unorthodox economists is to enforce government interference in every aspect of our lives.

SA is a utilitarian economy. Citizens have no right to choose the services they want if they don’t want government-provided services (medical, security, education).

The position of the DA is right because everybody and every political leader is talking about employment and unemployment. The parties have little to say about income except those complaining about whites having money and what their share of equity is.

But I cannot just repeat what is said without providing input. Orthodox economists use two policies to grow the economy: monetary and fiscal policy. Automatic stabilisation maintains a chosen level of economic performance — they reduce tax to stimulate growth and attract investment.

Malele Mogoane
Via BusinessLIVE

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