Timmy ElsewhereJanuary 21, 2008 Tim WorstallTimmy Elsewhere2 CommentsAt the GI. Might it be true that the continued poverty of Sub-Saharan Africa is because real wages are too high there? previousTimmy ElsewherenextBritblog Roundup # 153 2 thoughts on “Timmy Elsewhere” patmills January 22, 2008 at 4:36 am Absolutely true. High wages are often justified by the fact that the wage earner has to support an extended family of a dozen people or more. For example, trade unions in South Africa are absolutely opposed to lowering minimum wage even though unemployment thus created is directly linked to crime. With the cock-up in the energy sector which will be fixed by “the middle of the next decade” unemployment figures should drop in another generation or so. http://www.capeargus.co.za/?fSectionId=&fArticleId=nw20080121152245975C458372 Stephen January 22, 2008 at 2:11 pm Trade unions in South Africa have created a two-tier system, their members in a labour elite that is paid far more than it is worth, and then an enormous informal sector that is forced to get by on a tiny fraction of what formal-sector workers earn. Leave a ReplyYour email address will not be published. Required fields are marked *Name * Email * Website Comment * Save my name, email, and website in this browser for the next time I comment.