South Africa does not need a higher minimum wage, it needs to improve its structural problems
Economic growth and developing a skilled workforce are the keys to raising wages — not further regulation
In the debate over minimum wage, people often become distracted by their inner altruism and ignore the logic behind the economic laws that govern labour markets and the macro-economy of SA. Merely subscribing to normative statements such as, "People should be able to access healthcare and higher education" or "People should be able to earn a living wage" provides little insight into the mechanisms by which these things could be achieved. Simply put, economic growth and the development of a skilled workforce are the keys to raising wages, not further regulation. Advocates for regulation typically jump straight from "People should be able to earn a living wage" to "We should raise the minimum wage in SA". However, there are economic forces at play that make this seemingly straight-line thinking look more like a highway through the Drakensberg mountains. As beautiful as the destination may be, ignoring these paths will surely make South Africans travel-sick before they ever get there. ...
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