President Ramaphosa wants lower wages to help revive economy

[FaSMaN]

Correct me if I am wrong, but lower wages result in lower spend , lower economy spent.

Economists feel free to correct me, as I have no idea.

 

[My_King]

Remove either VAT or TAX.

You can't have both

 

[RonSwanson]

"scarp the labour laws" that is the solution.

What? Instead of cutting the pizza into smaller slices, get a bigger pizza? Sharaaaap, don't come here with your western and colonial logic.

 

[Fulcrum29]

Remove either VAT or TAX.

You can't have both

I am starting to warm up to the idea to only have VAT. Make more mechanisms VAT compulsory, increase it up to 20% and introduce more tax-exempt basics. Then everyone is having the same cake.

 

[SubtleBeast]

To be fair that was a 3% increase.

3% of what they make is probably 3 times more than most people make in a year.

 

[SubtleBeast]

Correct me if I am wrong, but lower wages result in lower spend , lower economy spent.

Economists feel free to correct me, as I have no idea.

Exactly and with soaring prices it goes only one way: recession.

Not an economist though.

 

[Botha22]

"Labor unions are expected to agree to multi-year wage deals"
That didn't work out so well for the government employees, when govt unilaterally decided it was not going to stick to the signed multi-year wage deal.

 

[Bigjay84]

This lower wages for the 2 million jobs he's creating or lower wages for those struggling with inflation and daily increases in prices ?

 

[SubtleBeast]

"Labor unions are expected to agree to multi-year wage deals"
That didn't work out so well for the government employees, when govt unilaterally decided it was not going to stick to the signed multi-year wage deal.

He's under such pressure now that he makes up these things without thinking.

 

[porchrat]

3% of what they make is probably 3 times more than most people make in a year.

Sure, I'm just pointing out that 3% considering inflation means you're effectively earning less.

Unions are demanding stuff like 20% increases with housing and vehicle allowances on top. You can't really compare the 2 approaches.

 

[porchrat]

This lower wages for the 2 million jobs he's creating or lower wages for those struggling with inflation and daily increases in prices ?

He's talking about lower wages for entry level. It's not even lowering wages fullstop.

 

[ConfusedR]

How about just reducing their car allowances from BMW's to Toyotas?

The lowering of salaries, wages and benefits, do not apply to ANC cadres. Only normal, working people.

 

[OhYeah84]

I don't think it works like that Cyril, I don't think it works like that at all.

Lower wages will trigger The Great Resignation and you'll end up with lower employment rates. And lower wages cannot replace experience.

 

[OhYeah84]

This lower wages for the 2 million jobs he's creating or lower wages for those struggling with inflation and daily increases in prices ?

...still waiting for this to be triggered by the R500 billion they've made available with Covid starting. Wait...this isn't 2020, and nothing has been done.

 

[G'Wobblez]

are we talking wages not salaries?

And how do they think will these people get to work to do these low paying jobs.

 

[G'Wobblez]

Lower tax and the levies on fuel.
You need to give people more to spend more and travel more.
Not give them less and take more.
And then thinking it will solve the problem.

 

[JimM]

What strain is he smoking? Eish!!

 

[SubtleBeast]

Sure, I'm just pointing out that 3% considering inflation means you're effectively earning less.

This is exactly what we need parliamentarians and other elected public servants to be doing.

 

[system32]

Ramaphosa approved salary increases the other day. How is he expecting the ordinary person to take a pay cut?

I mean...

Parliament defends pay hike for MPs & ministers

The national legislature says South African public representatives are not highly paid when benchmarked against their international counterparts and have a lot of oversight responsibilities.

ewn.co.za

This isn't going to slide by the Unions. Let's not talk about Ramaphosa's, "historic", minimum wage increases. You can't turn back the clock on these matters. Pandora's box has been opened.

Speaks with forked tongue.
Eskom 7%

https://mybroadband.co.za/news/energy/450718-eskom-offers-workers-7-increase-report.html/amp

 

[porchrat]

This is exactly what we need parliamentarians and other elected public servants to be doing.

yes, I know... we agree... that was my point... (???)