A minimum wage that is too high

While some blame the rioting on Zuma’s imprisonment, the country is also fractured by chronic unemployment — almost 47 per cent of young people have no job.

So, why are 49% of da youf unemployed?

SA’s minimum wage is now 21.9 rand an hour. Or, $1.50.

Which is, clearly, too high, otherwise there wouldn’t be 49% youth unemployment…..

14 thoughts on “A minimum wage that is too high”

  1. There’s a video going round Twitter showing SA police closing down a supermarket for violating Covid-19 rules, while riots are happening elsewhere. I know the police always go for soft targets, but this really takes the biscuit.

    Is there a word for this phenomenon, whereby a country pretends to be middle-class by drafting petty laws, while ignoring far bigger problems? India’s recent ban on e-cigarettes is a good example.

  2. There’s a video going round Twitter showing SA police closing down a supermarket for violating Covid-19 rules, while riots are happening elsewhere.

    Sure they aren’t just preparing the ground for the next round of looting?

  3. I fully expect uk bobbies to be roughing up little old ladies for forgeting their masks as the sharia party seizes control.

  4. Apocalyptic new reality in SA = entirely predictable since ANC elected to power = they voted for it.

    Zimbabwe is a warning from history not a role model.

  5. The minimum wage compatible with full employment for Saffra youth could well be a negative number. And elsewhere too?

  6. The remaining jobs are in the private sector, where workers make an average of only 36.3 ILS (~11 USD) per day; 79% of private sector employees earn less than 1,450 ILS (~440 USD) per month, which is the minimum wage in Gaza.

  7. The employment laws are a nightmare of compliance regulations making unofficial casual labour attractive if risky, using enthusiastic illegal aliens ineligible for grants.

  8. Bloke in North Korea (Germany province)

    So the minimum wage is widely ignored in Gaza yet unemployment is crazy.

    Yea, I know there are rather special situations there, but as others have pointed out the same is the case in SA. And I bet the minimum wage is also widely ignored.

  9. One little linguistic point. “Unemployed” means not employed in the formal economy. You cannot be employed in the formal economy at less than minimum wage – it’s in there in that definition of formal. That the peeps who can’t get a formal job are all doing some work to make a living is true – but they’re not “employed”.

  10. What Tim said.
    Also the self-employed can be earning less than the minimum wage – which is why a significant minority of the UK self-employed have accepted that unprotected status because they can earn something, in most cases a bit more than JSA plus its associated benefits (nil council tax and so on), in other cases less – but they choose to do so to retain their self-respect. [In my youth “he’ll neither work nor want” was an expression of contempt.]
    The South African youth who have grown up ruled by the communist multi-millionaire Jacob Zuma rarely correlate self-respect with earning their own living

  11. Andrew M,

    Yes there is. It is called anarcho-tyrany. Where the governmrny cannot or will not crack down on egregious crime and unrest, but is hot to prosecute the tiniest of petty administrative crimes and bylaws. Best example I ever saw was Sweden after a “carbeque”. The police did nothing to stop rioting and the mass arson of cars, and specifically threatened and prevented the owners from trying to protect their property instead.

    The next day there was an amazing picture in the press of a traffic warden writing up tickets to post on the burned out cars, fining the owners because their now burned out cars were parked illegally.

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