Government the cause of unemployment

In a recent interview on a finance show, an economist mentioned that employment in the agriculture industry had fallen from 2,1 million before enactment of the minimum wage to 770 000.

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I haven’t yet been able to verify this, however. On 2 June 2013, the department of agriculture placed an advertisement in the press, boasting an increase in agricultural employment from 656 000 to 739 000 year on year.

But no mention was made of those who used to be employed. Actions have consequences. Those who propose minimum wages do not expect to pay for it in the form of higher food prices. Yet these same people are often more than willing to spend money to watch sport, for example.

Government has created mass unemployment. No government on earth can ‘create’ employment. Governments can only create a legal framework within which private business – and thereby employment – can thrive.
Business is about production; government is about consumption; and there can be no consumption without prior production.

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Throughout history, millions of people have devoted their lives to eradicating poverty. They have all failed. In fact, the one development that has managed to reduce poverty had no such intention in the first place! This was the Industrial Revolution.

Thinking about it recently, it dawned on me that the ultimate, inevitable end of the Industrial Revolution will be the dwindling to nothing of the demand for human muscle power.

(StatsSA put employment in agriculture, hunting, forestry and fishing in South Africa at 1,09 million in 2006 and 624 000 in 2011 – Ed.)