A Growth Path for a Post-Apartheid South Africa.
In the abstract, four alternative growth-paths can be identified:
1. Growth through inequality:
Globally, this path was adopted during the 1970s by both Reagan and Thatcher. It was designed to stimulate accumulation by increasing the rate of profit which had tended to decline in the OECD economies during the 1960s and 1970s. One of the key components of this growth-path is a focus on the mobilisation of cheap labour. This was to be achieved through a series of policies, including an undermining of the militancy of organised labour and the bringing into operation of the reserve army of labour (in some cases through trade with low-wage economies). Another important element saw the substitution of value-added taxes and a reduction in the tax rates levied on personal and corporate incomes. This was supposed to enhance the incentive of capital to invest in capacity expansion.
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