South Africa is an emerging economy in the global market and like most third world countries it faces economic issues that entail unemployment, inflation and economic inequality that has been exacerbated by the apartheid regime. Using fiscal policy, government through the years has tried to address these key issues that affect the economy and the people of South Africa. Progress has been made but various trade unions have actively come against government policy more often than not demanding a more radical stance towards the policies of the government. Trade unions like COSATU and NAMSU play a major role within the South African economic and political sphere. Acting as advocates for their members, they negotiate on their behalf in order to ensure fair remuneration, working standards and government policy. More often than not this brings them to loggerheads with the government as they argue over the ill-effects of proposed government policies to their members. It has been argued that trade unions pursue a marginalized agenda that merely focusses on their members and neglects the often poorer non-unionized individuals. It is the purpose of this paper to evaluate the purported lack of financial viability of these alternate trade union submissions as well as the economic implications of the aforementioned union suggestions including their effectiveness in cultivating economic growth and economic inclusion. This shall be achieved through noting the problems major fiscal policies attempt to tackle, the trade unions alternative to these and comparing the general applicability and effectiveness in tackling these mentioned problems. This paper shall focus mainly on the youth tax subsidy and taxation.
Economic growth is defined as the stead...
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...t policy. However the government policy on taxation is a more applicable one as a progressive tax would have adverse effects on the growth of the economy and in have unintended negative effects.
In conclusion, the trade union submissions will support economic inclusion but will not allow for economic growth as there is a trade-off between equality and economic growth.
Works Cited
http://www.ebrd.com/downloads/research/transition/tr13e.pdf)
http://webarchive.nationalarchives.gov.uk/+/http://www.advantagewm.co.uk/Images/AWM%20Economic%20Inclusion%20Policy_tcm9-9747.pdf
http://www.cosatu.org.za/show.php?ID=8479#sthash.d5MCcqP6.dpuf
http://www.anc.org.za/docs/discus/2013/youthsubsidyq.pdf
http://www.philadelphiafed.org/research-and-data/publications/working-papers/2003/wp03-15.
https://heartland.org/policy-documents/research-commentary-progressive-taxation
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