Covid-19 had caused drastic increases in government spending and government debt across the globe in an effort to stimulate aggregate demand the economies as a whole. Recently there is a growing interest in the new theory called the Modern Monetary Theory (MMT). The theory explains that rising budget deficits are good economies as long as increased government spending does not lead to inflation. Furthermore, this theory promotes rising government debt as means of supporting government spending. As noted by Stephanie Kelton in her book “The Deficit Myth”, governments can fund this spending and servicing of debt through printing money. As such, all the spending could, in principle, be financed via the creation of cash rather than taxes. Taxes may serve other purposes such as providing public services. In relation to the above, use the multiplier model (or other models such as the IS-LM and AS-AD models) and critically analyse the effectiveness of MMT in South Africa. Furthermore, give your own policy recommendations of how the South African economy can grow post the COVID-19 pandemic.
that Locke’s primary philosophy is centred around the understanding that citizens are living under in a state governed by the ‘rule of law’; principally free from the arbitrary power of any individual. However, this theory was contentious in the circumstances surrounding the Exclusion Crisis, where the potential for tyrannous actions was greatly feared, under both James II and later under William III; the need for the justification of the regulated use of prerogative under the executive was critical and thus is part of the foundation for Locke’s work. However, there is a constitutive indeterminacy concerning the legal place of prerogative power, and that indeterminacy is resolved not by conceptual analysis but by popular retroactive judgment. In this way, it may be considered that one cannot acknowledge the legitimacy of extralegal action without weakening the conviction that legitimate action must accord with the law. Lockean prerogative is deftly based upon the ideology the such powers are only employed when the use of prerogative can be clearly defined. It is with this understanding that Locke sets forward the boundaries for reasonable use of such powers, and furthermore “if there comes to be a question between the executive power and the people… the tendency of the exercise of such prerogative to the good or hurt of the people, will easily decide that question”. This Lockean theory arguably allows for the emergence of a political vacuum where necessity for the use of executive prerogative as suspending law but not creating new law, or necessity as excusing illegal conduct without rendering it legal, or suspending law, may allow for the exploitation of such a political gap by the executive without the adjudication of the legislature. In this way, one cannot acknowledge the legitimacy of extralegal action without weakening the conviction that legitimate action must accord with the law; by imbuing such authority to the executive, it may call into question the natural and authoritative law as set into place by the representatives of the legislature, thus undermining their jurisdiction over the regulation of the scope of prerogative. Furthermore, Locke’s prerogative theory is largely dependent upon the the legislature as representative of the people, and wider society as elected officials. The enforcement of both natural laws and the executive are, according the Lockean theory, dependent upon the support of the common good; “Such consent is expressed not only through voluntary compliance with a rule, but also through its persistent recognition as authoritative coupled with>GET ANSWER