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The Chief Executive Officer of Business Leadership SA (BLSA), Busi Mavuso, has once again made many highly controversial statements in her latest weekly newsletter which are very far off course to economic recovery and growth.

“The key task of government is to create the conditions that will enable the private sector – both big and small – to emerge, to grow, to access new markets, to create new products and to hire new employees.”

If only the government and its social partners had the faintest idea which "conditions" will have to be created - but they do not know at all! It is in fact devastating to the economy that they will just never understand that it would only be possible if the government could develop a political and economic environment that must be conducive to the private sector to generate profits and create economic growth!

Their single biggest problem is the fact that they do not understand that "profits" is the sole creator of economic growth and it is very clear that they never will!

The President, Cyril Ramaphosa, "pointed to the structural impediments that need to be fixed – reliable electricity, efficient ports and rail, scarcity of broadband, water quality. He spoke of the need to eliminate red tape that saddles companies with costs and damages their efficiency." 

For how many years has the government already been spoken about fixing these "structural impediments" by implementing "social-economic reforms" but still not much has happened!! In fact, almost nothing happened that could create economic growth which is the reason why South Africa is straight on its way to a bankrupt and failed country in the very near future!

She also pointed to the Minister of Finance, Enoch Ngodwana, who said in his budget speech that "the corporate tax system must support companies to “grow, increase investment and employ more people”. How stupid does she and the Minister believe the people of the country is to accept such absolute nonsense just because they do not have a clue what they are talking about when it comes to the most basic economic principles of how economic growth, investment and employment are created!

The "corporate tax system" can never support companies to “grow, increase investment and employ more people” as economic growth is created by the supply and demand sides of the economy, as proven by Statistics SA every quarter, that is created by the profit motive which is the only way how to achieve these objectives. Within a political and economic environment that the government must develop for the private sector to create profits and growth!

She said that "collectively, the State of the Nation Address and the Budget reveal a closer alignment with the issues that business has been highlighting for a long time. One gets the sense that the message is getting through. The key issues that I have often highlighted that currently restrict employment and business growth have now been acknowledged by the president and finance minister."

She must be joking as all the issues that she and the government have ever highlighted were the reasons for the most severe fiscal and social problems that are much worse than during any previous period in the history of the country!!

 ... the efficiency of the economy" can only be improved by the application of the latest technology developments which must support the private sector to deliver more outputs with the same number of inputs or the same number of outputs with fewer inputs!

 "For once I feel like business and government are not pulling in opposite directions." Incorrect! BLSA has always "pulled together" in the same direction as a social partner of the government that destroy the economy as clearly proven.

"This gives an opportunity for BLSA and the rest of organised business to work together with government to deliver the conditions we need to grow the economy and create jobs." Unfortunately, neither BLSA nor the government has the faintest idea of how economic growth is created and how they can make South Africa a better place to do business and contribute to the economy."

Forget it - it is not possible and without any economic literacy and competence there is no change!"

The fact that the government and its social partners do not understand that "profits create growth and jobs" to address the very serious fiscal and social problems is the single biggest reason for the downfall of the economy and the country!!

“The government and BLSA are not part of the solution to the problems in the country - they are the problem!!”

Somebody has said some time ago: "You cannot leave those who created the problem, in charge of the solution!", according to Brink.