EDITORS LETTER
The benefits of ‘ Big ideas ’ solving problems in an economic downturn
It was English economist and philosopher , John Maynard Keynes , founder of modern macroeconomics whose ideas fundamentally changed the theory and practice of macroeconomics . His work was built on the causes of business cycles which set the standard of economic policies of governments worldwide . His statement that , ‘ difficulty lies in not so much in developing new ideas as in escaping old ones .’
Our government can take a leaf out of his book in escaping old ideas and implementing new ones ( not based on ideological thinking ) while they ponder the economic future of South Africa . The necessity to apply and implement new ideas to fix the electricity crisis , rampant corruption , crime and appointment of a new cabinet to grow the prosperity of the ailing SA economy is a must .
In his 2023 State of the Nation Address ( SONA ), President Ramaphosa said that ‘ unleashing ’ SA ’ s own electricity generation programme among private households and businesses is a key part of the country ’ s wider plans to end load shedding . He identified 5 key points to fix the electricity crisis :
• Fix Eskom and improve the availability of the existing
• electricity
• Fundamentally transform the electricity sector
• Enable and accelerate private investment in generation capacity
• Accelerate procurement of new capacity from renewables , gas and battery storage
• Unleash businesses and households to invest in roof top solar
Adam Smith , the father of modern economics , said in his writings that wealth is created via labour , and that self-interest spurs people to use their resources and ‘ ideas ’ to earn money .
Smith ' s theorises that economies thrive when competition , capitalism , and a free market , are alive and well . On a more individual , household and company level , microeconomics study of individual and business decisions regarding the allocation of resources and prices of goods and services . Small says that here are six key microeconomic business factors that affect almost any business daily : customers , employees , competitors , media , shareholders , and suppliers as well as the relationship between supply and demand .
He says the heart of economic theory , is inextricably linked with the concept of generating ‘ big ideas ’ to solve problems . When they stick they can to guide you and your business to an extraordinary future . Now if that is not message to all property landlords , business owners and entrepreneurs to implement in their businesses daily .
Successful investing .
NEALE PETERSEN FOUNDER & EDITOR-IN-CHIEF
“ Success today requires the agility and drive to constantly rethink , reinvigorate , react and reinvent .” - BILL GATES
SA Real Estate Investor Magazine FEB 2023 5