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Social Policy Decisions
Free market forces Anti Government Entrepreneurship Economic stability Steered economy Pro Government Human suffering Job protection
Social Policy Financing A case for employer of last resort programs - - PowerPoint PPT Presentation
Social Policy Financing A case for employer of last resort programs - - PowerPoint PPT Presentation
Social Policy Financing A case for employer of last resort programs in South Africa Social Policy Decisions Steered economy Free market forces Pro Government Anti Government Human suffering Entrepreneurship Job protection Economic
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Conflicting Goals
Increased international competitiveness (G) Pursue economic transformation (R) I Universities run as public enterprises (¬A) IV Universities run as corporate enterprises (A) Pursue social transformation (R’) II V III
Wentzel, A. (2015). Analysis of creative reasoning in economics: a scientific approach (Doctoral Thesis). Chapter 6: How to construct an economic problem as a conflict. pp.63-72
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Conflicting Values
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- 1. Knowledge Sharing and Creation
Open dissemination New research Publication Ownership Control Profitability
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- 2. Academic Duties and Public Interest
High quality education Well functioning members of society New knowledge and unbiased information Economic value for investors Exchange value for customers Prosperity for society
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- 3. Distribution of power and resources
Most economically productive uses Competitive market-based selection Creative destruction Well rounded education As many members of society Diversity of disciplines and perspectives
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Lack of Policy Choice
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Current Financial Model
South African Reserve Bank. (2015). Quarterly Bulletin: December 2015. pp.71
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Social Policy Financing
Some form of tax financing is necessary...
(Belkovicsová, 2012; Boldea, 2016 and Demange, Fenge & Uebelmesser, 2014)
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Tax Funding and Deferred Charges
Belkovicsová (2012:49) and Demange et.al (2014:343)
Income contingent loans
Repayment problems
Graduate tax
Most equitable
Human capital contracts
Skewed
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Theoretical Limitations
South Africa National Treasury. (2015). People’s Guide to the Budget. National Treasury, pp.3
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Functional Finance
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Government Spending
A L A L A L A L
Government Central bank Banks Private sector + Loan + Dep + Dep + Res + Res + Loan
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Types of Money
Name Description Central bank reserves Central bank IOUs to commercial bank Bank deposits Commercial bank IOUs to private sector Currency Central bank IOU to currency holder Fiat money Irredeemable money Commodity money Commodity with intrinsic value used as money Base money Central bank reserves + Central bank currency Broad money Central bank reserves + bank deposits
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Government Taxation
A L A L A L A L
Government Central bank Banks Private sector
- Loan
- Dep
- Dep
- Res
- Res
- Loan
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Employer of Last Resort Programs
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Price Stability
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Full employment
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Criticisms
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Case Study 1: Argentina
Head-of-Household Program
Positives Reduced indigence rates: Individual = 18% Household = 25% Women = 60% of program Government cost < 1% of GDP Negatives Foreign debt Restrictive participation ELR wage < poverty line
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Case Study 2: India
National Rural Employment Guarantee
Cost = 1.3% of GDP Benefit = decreased the number of poor households and increased GDP
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Case Study 3: France
Cost 4% of GDP Benefit Guaranteed activity income Job training component Financed by unemployment insurance
Professional Transition Contracts
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Recommendations
Current paradigm NSFAS withdrawal payments/graduate tax Heterodox paradigm NSFAS as a funding pool for ELR program
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