Picture credit: African Independent … Goldblatt
When my dad was a boy walking barefoot, without a jersey to
school during mid-winter on the Rand[1]
people said “poverty doesn’t need an explanation, wealth does.”[i]
That’s changed. 2011 calculations show that the top 40% in
South Africa took near to 74% of the income.[ii]
Greed Capitalism ensures profits flow upwards and are
deposited into accounts and stocks and shares. That’s where the banks are. Money
is being withdrawn from making performance contracts in society.
And banks have another nation-killer practice: they are exploiting
those citizens who are least able to afford Greed banking services.
Private debt in RSA, courtesy of the conventional system
“South Africans are the world’s most avid borrowers” reported
The Economist this January. 86% had borrowed money and 25million out of about
37million owe money to financial institutions or other corporate lenders ...
(yet) … “fewer than 10m people are formally employed”.
WOW! That’s trouble. And what has the country to show for
it?
One of the highest crime rates in the world[iii],
a massive climate-change footprint[iv]
overdraft[v]
and we hold the “most unequal of all nations” trophy.
At the irritation level roads are terrible, drivers worse,
best food is exported, schools are (overall) dumbing down institutions, health
is mess (literally last week), and Tshabalala who earns around R50 million had
to bring in a government man to help him.
It’s wicked
The idea that only bankers, owners and managers of the Greed
machine and their selected-protected top politicians, business and sports
people and artists deserve the best of life is wrong - totally. They are, after
all, winners-of-a-life-of-excess only because they conform to the requirements
of Western economics.
Even the most disadvantaged of the masses must have a chance
to flourish, to say to their children, “I lived. And I’ve given you a better
chance”.
Home economics is different
Family expenditure has to be strictly balanced with income
otherwise the debt collectors will come knocking. Until we find a better a
system Capitalism dictates people live according to what their skills and the
labour-market allows them to earn.
Capitalism requires never-ending-growth meaning profits must
be re-invested into job creation. The resulting money supply (wages) expands the
market, increases the size of the pie of wealth so more consumers buy more company
products, creating more profits for more reinvestment.
Are South African companies investing in South Africa? So many
have left President Ramaphosa’s gimmick was to invite foreign-others to plug
the gap! Worse, we’re exporting under unfavourable terms while at the same time
accepting dumped products (Obama’s chickens) and borrowing expensive foreign
currency.
The more street-level economic conditions[vi]
deteriorate the higher/more immediate
the profits sought and the faster money moves out. That translates into minimal
local investment.
That’s why people are forced to the banks. Loans temporarily
stimulate the market but it isn’t investment. Its debt.
Debt PLUS the (uncreated) interest has to be paid back which
reduces the wealth pie available to the not-rich by taking vital cash out of
society. Worse, few of the bottom 60% of South Africans can borrow formally:
not only are their extended families exhausted supporting them but their
capacity to be consumers is diminished … so businesses go into decline.
The impotency of the majority who cannot get work or can
only get part-time work, who haven’t the money to start a small business,
translates into anger directed at those with money, with skills. The skilled
continue to leave, business and banks neglect reinvestment and the cycle
repeats.
Running a country is NOT the same as running a home
South Africa isn’t a super large home that needs balanced
books. It is a nation of (around) 56 million with very different but totally integrated
sets of vital needs of food, health and education. And all have desires like wanting
time and energy to dance, sing a little. We need to be alive enough to discard
the emotion-blocking Rhino-hide we’ve developed that allows us to dismiss the
rapes, murders, child abuse, school closures, bankruptcies and municipalities collapsing
because residents can’t pay. We have to move beyond posting pictures of pothole
pools, getting incensed over a poached elephant or a talk on colonialism. We
need to be able to cry a little.
What exactly will happen when the electricity (or water) for
a range of communities is shut off because of non-payment? Or the bulldozers arrive mid-winter, your brother
is declared bankrupt?
The likely shout is “tough - that’s their problem”.
But it isn’t – unless your poor neighbour is assisted you will
be brought to his/her level and suddenly most of South Africans will be
wondering how to survive the next month either because they’ve joined the
debtors or waiting for the robbers.
And that assistance has to be long-term, as long as it takes
to raise a child.
The government of the people of South Africa has a duty to
ensure that happens.
Declare war on poverty
A Capitalist solution is available
Everyone has one common requirement to get on with life in a
Capitalist climate: The exchange of money.
To fulfil even the most basic life functions money is the
“contract” that makes “it” happen.
“I agree to give you this money to do this work.” “I agree to
give you this money for that cabbage.”
That cabbage will only end up in a family pot if money
moves. Wages will only be paid if a job is created and the work performed.[2]
The new bankable asset: Projects
Project growth is the foundation to ensure the exchange of
money happens.
The government must get involved and it must provide expert
guidance. The government must become the nation’s banker.
Projects owned by groups, communities and regions – projects
where the thousands of small are treated as important as the handful of large. Projects
… productive works … that’s what we need - not borrowing to buy weapons from the
overseas governments who lent the money!
It is about common sense and good governance
If a community needs a road, a veg-plot, a clinic, a waste
dump sorted – whatever can be motivated as being beneficial to that group or
community - MAKE IT HAPPEN.
Permission from the CEOs who collect annually at Davos[vii]
isn’t required. Only common sense and
the courage to tell them to take a jump.
Banks and businesses look to maximising profits for the few.
Society must look to reversing losses, costs and trauma.
That happens by involving the whole nation. In doing so local
people will have work, they will begin to become independent which brings
feelings of belonging. They’ll love the opportunity, they’re keen, needing only
guidance and cash injection.
There are thousands upon thousands of jobs/projects that must
be done now and thousands more which once initiated will stimulate FURTHER
growth - growth in the traditional capitalism way, and they’ll bring in more taxes.
The re-birth of South Africa is limited only by imagination.
And lack of expert guidance.
Budgeting rules
1.
Projects must be owned; responsibility and
congratulations attached for performance.
2.
Budget (becomes money) is only allocated to
productive/enhancing projects.
3.
Corruption is a no-no. Already another project – district courts.
Nabbed today, sentenced to work tomorrow.
4.
At the end of their term the nation’s presidents
and provincial premiers will be sentenced to live in the poorest community in
the country.
The Greed Capitalism rule … “the maximisation of profits no
matter the cost to humanity or the environment” is cancelled. If a project pays
wages into a community and otherwise comes out even that’s grand, amazing. If a
job that was done by one graduate is split and done by five – wonderful.[viii]
They’ve a wage and graduate will instruct elsewhere. That’s real productivity
improvement.
So much is obvious yet so little done.
It is about changing our thinking
If South Africa found itself in a war it may win (with say
Malawi) parliament wouldn’t delay matters by directing its generals to approach
ABSA Bank for a loan.
The deaths and knock-on effects of poverty are far more
serious and yet a declaration of war and implementation of war-winning-thinking
that WILL turn South Africa around hasn’t happened. Parliament has failed to
protect its electorate.
The consortium of private banks must continue though capitalism
should be about competition. If borrowers prefer to pledge assets (a house or
car say, or a stop order against future income) to get a loan that’s fine, but
now government will be in the national market and it will accept certified
projects as assets.
The immediate benefit will be families having a better go at
balancing their books. National profits will be slightly delayed – even the
biggest of businesses allow a time horizon on monies invested to produce, to
mature.
There is no better investment than one made in oneself and
today is the day the ANC must press the button on the computer...
“Great project. Budget authorised. Digital transfer … MADE!”
Get working - enjoy working!
Yes it works
The most often quoted example is the American government’s
investment in General Motors, an act that put food on the table of the homes of
one million workers.[ix]
The South African Iron and Steel Industrial Corporation
(Iscor) was just a project in 1928. As close to home but much smaller, of the
scope easily handled by district administrations, is the example of Southern
Rhodesia. It avoided the worst of the Great Depression (1920s) when the brand-new
government sponsored a host of new works. Among other projects the road to Plumtree
was modernised, police stations built and white schools expanded.
Small and neat … and so are our communities when we start to
see the people and not just numbers in a register and roads on a map.
Superior asset, superior ideal
A project is far superior to a dead asset lodged in a bank.
There’ll be work for all skills, there’ll be results - money will move from mother-homemaker
to butcher to baker to veg-wholesaler, beer brewer to son’s teacher - energising
the community. Magistrates won’t be sentencing
Mums for stealing bread.
“Empowerment now means peace for the future” wrote Canadian Michel
Chossudovsky just yesterday. I add, “paid jobs now means prosperity starts today.”
[1]
Greater Johannesburg
[2] Anybody
who advocates cutting government developmental spending is either brain-washed
into the ideology of US/EU economic hegemony or doesn’t understand classic
economics – there is a word for both … idiot.
[i] Cribbed
from Steven Pinker.
[ii] https://www.indexmundi.com/facts/south-africa/income-distribution
[iii]
This last week “One of Britain’s most senior police chiefs has intervened in
the debate about rising crime, saying social inequality is a cause that needs
tackling and that those arrested and jailed tend to be people with less money
and opportunity...“children are not born bad”. theguardian.com/uk-new...
[iv] https://www.maropeng.co.za/content/page/your_ecological_footprint
and see http://www.douglasschorr.com/2014/12/poaching-is-not-problem.html
[v] http://www.douglasschorr.com/2014/12/poaching-is-not-problem.html
[vi]
Forget the lies GDP per person tell … look around you for the truth.
[vii]http://www.douglasschorr.com/2018/01/the-davos-man.html
[viii]
http://www.douglasschorr.com/2015/08/the-productivity-myth.html
[ix] https://www.nbcnews.com/businessmain/u-s-exits-gm-stake-taxpayers-lose-10-5-billion-2D11716261
http://www.douglasschorr.com/2018/06/banks-stand-aside-do-your-job-anc.html
