BUSINESS REFLECTION: After the Bell: Load shedding and the fallacy of the carrot and the stick

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Since the stick is a variable motivator, some governments, when things are really desperate, resort to the carrot.

How do politicians in a democracy make things happen? It seems so obvious: politicians, supposedly representing their constituents , make rules in Parliament, otherwise known as laws, which determine the actions of the populace . But, you know, it never happens like that.

So, since the stick is a variable motivator, some governments, when things are really desperate, resort to the carrot. And we saw a good example of that today when SA Revenue Service chief Edward Kieswetter suggested that he and the finance ministry had begun initial discussions onIn a way, it is natural that Kieswetter should be the one most open to the idea of this particular carrot. His job is to improve tax compliance and to increase the fiscal take for the government.

There are, in fact, already accelerated depreciation allowances available for the installation of renewable energy plants. The allowances effectively translate into a 28% discount on the plant. But, he says, this is clearly not enough.

 

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