Tag: Free Market Foundation

The charts below, and others like them, are frequently used online and in presentations by economist and author Stephanie Kelton. She uses them to support the Modern Monetary Theory (MMT) claim that, contrary to conventional wisdom, government deficits are not harmful. Instead, she argues they represent a gain to the economy.

The European Union (EU) is often overlooked in global power analyses that favour hard power, which finds expression in areas such as military strength, intelligence capabilities, or ideological exports.

We have announced 16 May 2025 as this year’s Tax Freedom Day: the moment when hardworking South Africans finally stop toiling to pay their taxes, and start earning for themselves. We have marked this day since 1997 to shine a light on the tax burden shouldered by ordinary taxpayers. Tax Freedom Day on 16 May means that the average South African has laboured 136 days – over a third of the year – to fund government spending.

It is often purported that the road to hell is paved with good intentions. My online debate with South African Modern Monetary Theory (MMT) advocate, Buddy Wells, made me think about this wise saying. Mr Wells, of whom I have grown fond since our first interaction on X and who has been nothing but cordial in our debates, argued that following the policy prescriptions of MMT, the SA government can issue more currency to build more schools and employ more teachers.

Modern Monetary Theory (MMT) is an economic framework that proposes that countries that control their own currency can issue new currency to meet the needs deemed necessary by the government. Theorists argue that governments should issue currency to create jobs for the unemployed, to narrow the gap in wealth inequality.

We cannot tax our society into behaving better. No matter how much we would like to believe otherwise, it remains ineffective. Behaviour-adjusting taxes, like sin taxes on alcohol and cigarettes, have failed to curb excessive smoking or drinking. The sugar tax has placed a heavier financial burden on the working class. However, it has not achieved its intended behavioural change.

The tragic deaths of children exposed to harmful chemicals from foreign-owned spaza shops have highlighted the need for regulations. As we push for more regulations, we must ensure that we do not harm ourselves in the process. Various legal philosophies shape one’s understanding and interpretation of the law.

The first notable initiative in government by the Inkatha Freedom Party (IFP) – South Africa’s second oldest existing federalist institution – has been to centralise spaza shop regulations under the central government. The xenophobic dimension is less surprising.

Consumer benefits in mergers should be the central consideration when evaluating whether a merger enhances or harms the market for consumers. The Competition Tribunal recently blocked a merger between Maziv and Vodacom, two major players in South Africa's telecommunications sector.

South Africa relies on a single machine to produce driving license cards, which is downright ludicrous. In November 2021, an electrical fault caused the machine to break down. Repairs took two months, increasing the license backlog by over a million.