Thursday, May 27, 2010

Cape Town Libertarians first meet

Yesterday a motley group of Cape Town libertarians met up to discuss their common political philosophy. This was the first such gathering, bringing together unaffiliated scholars, members of the Free Market Foundation, members of the Cape Party and authors of this blog. The occasion was a resounding success! If you'd like to get on our mailing list, please write to us.

Wednesday, May 26, 2010

Fear the boom and bust

This video is both funny and topical!

"John Maynard Keynes and F. A. Hayek, two of the great economists of the 20th century, come back to life to attend an economics conference on the economic crisis. Before the conference begins, and at the insistence of Lord Keynes, they go out for a night on the town and sing about why there's a 'boom and bust' cycle in modern economies and good reason to fear it."

Tuesday, May 25, 2010

Knock-on effects of the Transnet strike

"BMW South Africa group communications and public affairs GM Guy Kilfoil said it had become clear that service and international competitiveness were not Transnet’s first priorities, spurred on by the fact that the parastatal could act as a monopoly."

"BMW South Africa currently exported its vehicles through the Durban port, which belonged to Transnet. However, the vehicle manufacturer had just completed a second test run through the Maputo harbour, in neighboring Mozambique. Kilfoil said there was no detailed business study on this available yet, but added that it was clear that port charges at Maputo were lower than those at Durban."

Ironically, how many jobs would be lost if BMW South Africa moved one of its production facilities to Maputo due to unreliable electricity and freight rail supply? This would be a clear example organised labour in South Africa contributing to unemployment.

Full article at Creamer Media.

Transnet strike costs farmers R1bn
Similar effects in the agricultural industry...

"A transport strike in South Africa, now in its third week, has resulted in farmers losing over $127 million, putting jobs in the agricultural sector under threat..."

"In the past year, the agriculture sector has shed more than 100,000 jobs and only 30,000 were created in the first quarter, Minister of Agriculture, Fisheries and Forestry Tina Joemat-Pettersson said, adding: 'These jobs are now under threat as the sectors themselves are facing production losses.' "

Full article at Creamer Media.