The outlook that South Africa ‘will only run out of money by 2042, is totally unrealistic and creates a greater comfort zone for the ANC government and could lead to total misleading economic prospects for the country," says Fanie Brink, an independent agricultural economist.
Brink responded to Professor Jannie Rossouw of the University of the Witwatersrand School of Business Sciences who informed a public session today in Parliament about his view of the past budget on the country's fiscal prospects in terms of the state's declining revenue, rising expenditure and irrepressible debt burden.
"The single biggest core problem must first and foremost be attributed to the consequences of the ANC government's socialist and communist ideology which cannot create economic growth but can only destroy it. This ideology was totally rejected worldwide decades ago. The current irreversible deterioration of the economy is already a very clear and undeniable proof of this destructive policy.
Secondly, it must be attributed to the ANC government's total ignorance, inefficiency and unstoppable corruption."
There is a very good saying that says: "Don't stand too close to the trees that you cannot see the wood!"
The specific causes of these fiscal problems are undoubtedly, firstly, the result of the economy which is virtually not growing, while the chances are very good that the economy will move into a permanent negative growth terrain this year. The state's revenue is directly linked to economic growth, as growth is in fact driven by the profit motive, creating the bulk of the government’s revenue.
The second key cause of the problems is not only the fact that government spending increases every year uncontrollably, but that it will increase at an exponential rate which will also increase the debt burden to the same extent in the near future. The total destructive management and corruption on at all three levels of government requires it to come forward with more and more promises and unaffordable spending to stay in power.
These core problems are being aggravated by the fact that the ANC government is unaware, does not understand and clearly does not care that its political policies have already greatly hampered its own economic goals to create jobs and to alleviate poverty. A total unacceptable phenomenon associated with this devastating process is the fact that organised business, which also includes the organised agriculture and the corporate agricultural industry, as well as some private initiatives such as the CEO Initiative, go out of their way to help and to support the government as far as possible to implement its destructive political and economic policies.
"The only solution to South Africa's biggest core problems is a total return to a capitalist economic system which is the only system in the world that can creates economic growth. The chance that the ANC government, as well as the politicians and the "economic specialists" will ever understand and accept it, is clearly not a strong possibility. That is why the ANC government will only need at most another 5 years to destroy the economy and the country,” Brink says.
One of the most intelligent people of the last century, Albert Einstein, said the following: "We will never be able to solve problems on the same level of thinking as when we created them!"
“This is undoubtedly the biggest problem, or as often referred to as only a challenge, facing the government!”
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Bothaville
27 February 2019
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