Let's face it, BEE is not going to save our economy and will not uplift Black people as dreamed up by the ANC. BEE is ruining our economy as new investors are looking for opportunities in countries with less restrictions on their money and their business. It is clearly racial discrimination and is polarizing society to the extent that businesses are closing or jobs are being cut.
I can understand the frustration of workers who get paid the minimum, while the top dogs (Black and White) walk away with the loot. How can we justify a CEO of a listed company earning R60 million p.a. and the workers get R6000 pm? (R72k p.a.= 0.12% of R60 mil) Office workers may get R20 - R30k or up to R360k p.a. That is only 0.6% of the CEO's package. This happens in state owned entities as well aka Eskom, Transnet etc. Just look at the inflated packages of snr municipal managers vs workers. Our wage gap is the legacy of English and British colonialism where colonies have been exploited to the maximum. This is unsustainable and leads to discontent and mistrust and may well end in anarchy.
What may work is the Scandinavian socialist/capitalist economic model of social democracy.
https://en.wikipedia.org/wiki/Nordic_model
In 2019, all five of the Nordic countries ranked in the top 10 on the World Happiness Report. Clearly, they must be doing something right?
Consider a cap on the wage gap so that the R60 mil of the CEO is also shared by the workforce who are mostly living on the breadline. Should these people earn a better wage, it will increase their buying power and will be a great stimulus to the economy.
Economics teaches us that wealth is created by the flow of money. Money lying idle in the bank is not generating wealth or prosperity, only interest to the holder. This is also seen in China (a communist country) where workers started earning more due to an increase in demand from globalization. Poor workers from rural areas could for the first time buy TV's, fridges and other consumer goods that improved their lives. Today there are many Chinese millionaires benefiting from their communist/capitalist economy, because of increased trade.
Does our govt have the courage to admit that BEE is wrong and is not creating prosperity? Will they consider another economic model?
When will they scrap tribalism and give rural families ownership of their land and their homes. This will give them the opportunity to get loans to educate their children, get access to funding for small business or other entrepreneurial activities. What a boost that would be to our economy.
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