Distribution of economic power will flow from growing the economy

A view of Alexandra township where an informal settlement is located near the upper-class suburb of Sandton, which shows that economic transformation has not filtered down and that many are still stuck in poverty. File Photo: Reuters

A view of Alexandra township where an informal settlement is located near the upper-class suburb of Sandton, which shows that economic transformation has not filtered down and that many are still stuck in poverty. File Photo: Reuters

Published Jan 24, 2019

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Brian Mahlangu is living in a dream world. First, a true distribution of economic power will happen naturally when the economy is growing. It has mostly been stagnating since the inception of democracy because of government policies.

Black empowerment legislation is a drag on the economy because of the cost of running it, the inefficiency it introduces and the opportunity for corruption created.

A few people have benefited, but most pay the cost of this pipe dreaming because the economy is handicapped.

A minimum wage effectively excludes the unskilled 50% of the population from the formal employment sector. No employer, of whatever race, can afford to employ a person if the cost of employment exceeds the value that person would add to the business.

When an economy grows, it creates opportunities for those with skills to exploit. There are many black people waiting at the start line.

Secondly, change can only happen when the majority have skills. With 50% of children dropping out of school, it is not surprising there is a lack of skills.

When people cannot read, write or do maths, how can they contribute to the economy? These facts are the real cause of a lack of transformation.

When we think of education, excessive union power, excessive class size, poorly-trained and unmotivated teachers and under-resourced schools are all part of the agenda.

It also necessary to think of the parenting children receive.

Evidence shows parenting influences brain development and it is probable many children are disadvantaged before starting school.

Brian Mahlangu has an insipid or Alice in Wonderland concept of how transformation should happen.

Somehow, transferring economic power to black people is going to bring miracles. I suspect he wants more legislation and more controls.

I would suggest that less legislation and fewer controls would free the economy, allow it to grow and bring about transformation.

Additionally, we need to move away from an obsession about race.

This monster will devour us all. Similarities outweigh the cosmetic differences by a long shot.

Robin John Small

Simon's Town

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