The Democratic Alliance (DA) still do not have an alternative economic policy to offer to the electorate to that of the ANC’s ideology of socialism and communism in South Africa.
A policy of economic inclusion to address the exclusion of a certain group of the population of economic opportunities is nothing but socialism which is enforced upon the economy and the country by the legislative doctrines of communism. Neither of these ideologies which was already totally rejected some centuries ago have any potential to create economic growth. It can only destroy economic growth as clearly demonstrated by the very clear policy direction of the ANC over which there can be no uncertainty about its political objectives irrespective of the resulting destruction of the economy.
Socialism tries to survive on social expenditure without any source of income except for the income that is still only and fortunately generated in South Africa by the remains of a capitalistic economic system. The only accepted economic system in the world today that can create economic growth driven by the profit motive and based on entrepreneurship and the respect for the private ownership of the basic factors of production such as land, capital, labour and management.
No political party have ever survived without economic growth as proven through the history of the world although it is always and very important issue at the top of any election agenda everywhere in the world.
Economic growth opportunities are not created by socialistic and communistic legislative doctrines but by the pure capitalistic economic principles of supply and demand. Economic growth can only be created by the contributions of all the industries in the primary, secondary and tertiary sectors on the supply side of the economy which can only be increased by the improvement of the profitability and sustainability of these industries. As well as the contributions to the total consumption expenditure by consumers and the government (as a consumer), exports and capital formation on the demand side of the economy. The private consumption expenditure contributes 60% from the demand side of the economy and can only be improved through the creation of job opportunities, increases in salaries and wages and lower income tax. Socialism cannot make any contribution to economic growth as it is based on social expenditure which relies totally on the income generated by a capitalistic market system as proven in the world (as in South Africa) over many years.
Politicians will never understand that the “hard-won political freedoms” cannot create economic growth through the very high involvement of the government in the economy, as the major characteristics of socialism and communism. It cannot be complemented by undefined, unpractical and unachievable economically inclusiveness that does not exists anywhere in the world. The “longstanding inequalities” have been exacerbated by an incapable, (failed) and corrupt (ANC) state.”
The fact is that there can be no economic growth, development or the creation of prosperity to address the social problems of South Africa’s past legislated discriminatory economic and political system by replacing it with a similar system but one that can only destroy economic growth!
“No political party has ever put before the public a policy which would address the legacy of economic exclusion” but for the one that the ANC propagates and which the DA fully supports which is pure socialism and communism.
South Africa is heading very fast towards the same destructive political and economic system that was implemented in most of the economic underdeveloped or non-developing countries in Africa and which is also the main reasons why the Sustainable Development Goals (SDG’s) of the United Nations (UN) will never be achieved in Africa! Mainly because the UN do not accept or realise that only economic growth can make its achievement possible but which is not even mentioned in the “framework to address the 17 systemic drivers of exclusion in a sustainable manner.” The assumption by the UN that the countries in Africa can create their own economic growth is not only unrealistic but totally economically unachievable. Nothing in Africa or in the rest of the world can be sustainable without economic growth!
Almost all the efforts over many decades to find solutions to hunger and poverty in Africa were not successful. The production of food by small subsistence farmers, who in many cases are struggling to make a living themselves, never was sustainable because it was not profitable. The profitability and sustainability of food production are the prerequisites for any country who strives to achieve food security and the eradication of poverty.
The international community and the big donors who have invested huge amounts of money in Africa over many decades to elliviate hunger and to eradicate poverty were not successful in finding solutions to these problems. The efforts to increase the efficiency of small subsistence farmers did not deliver any meaningful results.
The subsistence agricultural industry in Africa in any event never had the capacity to support an ever growing population in a sustainable manner. The fact that the agricultural industry in almost all these countries still makes the biggest contribution to economic growth and that it is still the most ‘’important, if not the major, part of the economy’’ is a further obstacle in itself and remains the most important reason for the underdeveloped status of these countries.
The total transformation and commersialisation of the agricultural industry, together with the simultaneous industrialisation of the economy, is the road to ecnomic growth, food security and the eradication of poverty in Africa.
According to the main findings of the “2018 Africa Regional Overview of Food Security and Nutrition” report on food security and nutrition, the hunger in Africa is still rising and the continent is not on track to meet the ‘Zero Hunger’ goal set by the Sustainable Development Goals of the United Nations by 2050.
“The prevalence of undernourishment continues to rise and now affects 20 percent of the population on the continent, more than in any other region. In Northern Africa, the rise is much less pronounced, and the prevalence is 8,5 percent. In sub-Saharan Africa, the upward trend appears to be accelerating, and 23 percent of the population is undernourished. The rise in the prevalence of undernourishment has been highest in Western Africa, followed by Central Africa.
There are today 821 million undernourished people in the world, which is 36,4 million more than in 2015. Of these 257 million are in Africa, 237 million in sub-Saharan Africa and 20 million in Northern Africa. Compared to 2015, there are now 34,5 million more undernourished in Africa, 32,6 million more in sub-Saharan Africa, and 1,9 million more in Northern Africa. Progress towards meeting the Wealth Health Organisation of the United Nations global nutrition targets are too slow at continental level to meet any of the targets.
In many countries, notably in Eastern and Southern Africa, adverse climatic conditions due to the El Niño climatic system led to a decline in agricultural production and soaring staple food prices. The economic and climatic situation has improved in 2017, but some countries continue to be affected by poor rainfall and severe droughts.
Climate change is a present and growing threat to food security and nutrition in Africa and is a particularly severe threat to countries relying heavily on agriculture. In general, reduced precipitation and higher temperatures are impacting negatively on the yields of staple food crops. By 2050, climate change will cause another 71 million people to be food insecure in the world, over half of whom will be in sub-Saharan Africa.”
The expropriation of agricultural land without compensation in South Africa, as part of the destructive political and economic ideology of the ANC-government, could very easily and finally degrade the developing country status of South Africa to the status of an underdeveloped country. Just like many other countries in Africa, where up to 85% of the population has become totally dependent on the agricultural industry for their daily livelihoods.
The government should rather keep as many commercial farmers as possible in production on their farms to prevent an unprecedented exodus of thousands of small black subsistence farmers, farmworkers and their families out of the industry into much higher poverty, unprecedented famine and human suffering.
According to the economist, Mike Schussler, the “most comparison data shows that South Africa is out of the race to increase living standards, uplift people and reduce poverty. While most of the globe is getting richer and unemployment is declining, poverty and unemployment in SA are growing. The financial market is simply reflecting the human and economic mess SA finds itself in. All the work of the budget is undone by the weak leadership and political parties blowing vuvuzelas while Pretoria burns. The middle class is thumped with higher tax burdens, while the poor get fewer government benefits. Politicians are using the poor man’s name only for their own gain.”
And the policy of the DA of “Economic Justice” will not change anything as it will never be able to create economic growth!
Capitalism is the only driver and creator of economic growth in the world today but South Africa has embraced communism and socialism after 1994 and totally rejected capitalism. It is just as Trevor Noah said in one of his show that “if the world decides that the right way is strait forward, South Africa always makes a U-turn backwards!
Politicians are also always try to capitialise on the poor especially before elections because of their ignorance and incompetence about economic principles. They just do not understand that economic growth objectives cannot be achieved by political objectives as it works exactly the other way around! Exactly as proven by the ideology of the ANC-government and which is very clear that the DA do not have an alternative policy that can create economic growth with their total delusions about “inclusive economic growth.” The problems of inequality, poverty and unemployment can only be solve through the implementation of a capitalistic economic system which is the only system that generate the income that the government require to solve these problems!
The supporters of socialism will apparently never understand that the income of the government is totally dependent on the profits generated by all the business enterprises in the different industries in the economy, as well as, the salaries and wages paid to the management and employees of these businesses and the government officials. This process is decisive for higher private consumption spending on the demand side of the economy and in both cases taxable in terms of the Income Tax Act.
It is not possible that the whole world can be wrong while the supporters of the ANC's ideological delusions about the process of creating economic growth in the world are correct. Like the delusions that the “key focus for all social partners should be on driving inclusive growth in the economy” and that the “… various platforms (should) continue to support growth-enhancing initiatives and policies…” according to some “social partners” but that will not be achievable through socialism.
“In government we would also need to set our own priorities. Our priority interventions in government must be geared to address the key drivers of inequality of opportunity.” These “priority interventions” will still be focused on achieving the objectives of socialism and communism and not on the drivers and creators of economic growth as it will only pursue the delusion and fallacy of inclusive growth.” Which growth?? “A growing economy (which??) … and “… improving South Africa’s economic prospects” (How??) “… there (will) only be shared misery instead of shared prosperity. It is totally unrealistic and even ridiculous for the DA to base its “priority interventions” for the government on the acceptance of “a growing economy” and improved “economic prospects” which will never be possible to achieve with its pure socialistic economic policy.
The “enormous potential to attract investment” is highly questionable with the present state of the economy, the fiscal implosion, corruption and the very possible downgrading of the credit status of the country. Why is it so impossible to understand that the economic policy of the DA will also be responsible for the same problems of “attracting an increasing share of the readily available global capital” and the fact that “higher levels of growth (and better returns on investments) will be impossible to achieve.” Almost zero growth is already resulting “in economic stagnation, rising unemployment and the entrenching of poverty” because of the totally destructive ideology of the ANC of socialism and communism. How is it possible that the DA can belief and accept that its policy will make any difference to that of the ANC which brought the economy and the country to the abyss of final destruction which is already totally irreversible in the country as a corrupt and failed state?
“Ours is a growth first agenda, meaning that measures to promote inclusion (total delusion) cannot come at the expense of a healthy economy. (Which healthy economy?) It will definitely “come at the expense of a healthy economy!” To this end, our approach to economic justice is careful not to detract from economic growth. (Which economic growth?) How will the DA recognize it when its “policy shows evidence that its interventions are acting as brakes on growth” if they have no idea how growth is driven and created?
Apart of the socialistic approach and character, inclusive growth can only means more people who can get economically active by identifying profitable business opportunities and able to manage the risks involved or to offer their education, expertise, skills and experience as managers and labourers to the labour market to earn an income and to provide for their retirement. That is if you do believe and accept a market economy!
The thousands of “stokvels” will no longer exists when the entrepreneurs in the country cannot create profits any longer and disappear because of the further deterioration of the economy which will make it totally impossible to reward their management and other employees for their services!
Conclusions
There can be no doubt that the DA’s “inclusive economic” policy is pure socialism just like the destructive ideology of the ANC government. It is, in fact, totally flawed as it cannot created economic growth which is driven and created by the profit motive from the supply and demand side of the economy all over the world today. The ideology of the ANC government has already created a corrupt and failed state. The most basic and important question, therefore, is where will the income of the government that it still receives since 1994 come from to fund its communism, socialism and corruption other than what is left of an almost totally destructed capitalistic economic market system which is the only accepted system in the world that can create economic growth? The further fiscal and debt situation will deteriorate to the point that not even a financial bailout by the International Monetary Fund (IMF) will be able to rescue the economy and the country from the destructive ideology of the ANC!!
The only political and economic solution to save the economy and the country from the final destruction and ruin is the complete rejection of the ANC government's ideology of socialism and communism. Now is absolutely the right time for opposition parties to launch an alternative to the ANC's ideology by accepting and proclaiming the total return to a capitalist economic system as official policy. An economic system that can create growth through the driving force of the profit motive and the recognition of the private ownership of all the basic factors of production in the economy.
The factors of production such as land and raw materials, capital, labour and management that entrepreneurs such as producers, manufacturers, private service providers and others need to create economic growth. Growth is only possible and sustainable if the supply side (contributions of all the businesses and industries) and demand side (contributions of private expenditure by consumers, capital formation and exports) of the economy can be improved. Through higher profitability on the supply dies of the economy and the increase of the disposable income on the demand side of the economy. They are the most important role players in the economy as the creators of economic growth and prosperity. Exactly the same way growth is created for many years in the most countries in the world.
Profits are created by two drivers, firstly, by the changes in the prices of all the inputs that are used in the economy against the changes in the prices of all the outputs that produced, manufactured and delivered as personal services, the input/output price ratio. Secondly, by the efficiency of the process how the inputs can be converted into outputs, i.e. how many inputs are needed to deliver one unit of an output, the efficiency ratio. The efficiency must be improved by the application of the latest and best technology developments to support the producers, manufacturers and other suppliers to deliver more outputs with the same quantity of inputs or to deliver the same quantity of outputs with fewer inputs
Economic growth is, therefore, totally dependent on the profitability of the economy and the government should create an environment that will be conducive the increase the profitability and sustainability of each industry in the economy to improve economic growth.
However, very few politicians understand that economic growth is much more important to the country than the results of the next election or the political structural reforms of the ANC-government which have proven to only destroys economic growth. The rejection of the ANC's ideology and the return to a capitalist economic system is the risk that opposition parties now have to take or to totally disappear from the political scene in a one-party state with a dictator in power.
The ANC government only needs 3 to 4 more years to totally destroy the economy and the country! South Africa will then become the first developing country in Africa which created a very high level of economic growth, prosperity and progress before 1994 through economic growth and technological development, but which was destroyed by socialism and communism - the final countdown to the total destruction has already begun.
