Tuesday, 5 March 2019

Our economy is in trouble

Just a week after  we debated the DA motion on the jobs crisis I saw a Facebook post by economist Mike Schussler which really scared me.

I shared a platform with Mike a few weeks back at The Wanderers in Joburg where we aired our thoughts on the same theme - the tanking economy and what we must do to turn the ship around.

But it was the comments on Mike's post that I found most troubling, coming from business owners at the coal face of our economy. You can read them below.

Ramaphoria is a chimera which has long disappeared and people must get used to the fact that we are in for a few rocky years until our political leaders realise we can no longer run a modern economy that is captured by socialist, racial nationalist and statist thinking.

Segments of the DA must also wake up and see that any form of BEE is taking this country in the wrong direction. Policy must be de-racialised and focus on ameliorating disadvantage by a laser-like obsession with investment and growth. Why use race as a proxy for disadvantage when you can measure the real thing?

We must reduce the cost of doing business wherever possible to make it easier for small companies to survive and grow. Current DA policy would exempt businesses turning over less than R30 million from BEE and certain labour regulations. This is a good start but we should go further and replace BEE with EED - Economic Empowerment for the Disadvantaged, conceived by the Institute of Race Relations. You can read about it here.



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