THE ANC’s NEW ECONOMY; AND THE REAL ECONOMY
by Gerhard Papenfus
The ANC’s ‘New Economy’
The ANC/EFF-type is very clear in their intention to use Covid-19 to create a new economy; an economy, in the President’s words, “underpinned” by Radical Economic Transformation. Although, for purposes of this article, I will refer to this as the ‘New Economy’, it is not really an economy; it is merely an ideological sham.
Since the ANC and the EFF share the same ideals, values and ideology, and only differ in terms of style and approach, they are identical and therefore, for purposes hereof, share the name ANC/EFF.
If what ‘they’ (the ANC/EFF types) envisage is realised it will be a ‘nationalist’ economy; only ‘blacks’ will benefit. However, not all ‘blacks’; only a chosen few. The rest will be left behind, severely prejudiced.
Notwithstanding socialism’s horrific failure (without exception) wherever it was implemented, ‘they’ still cling to this ideology. Deep inside, ‘they’ still don’t accept the reality of where money comes from. Somehow, despite history’s lessons, ‘they’ think that South Africa will be an exception, and that, in our case, socialism will be a sustainable solution. Perhaps ‘they’ don’t believe this; perhaps ‘they’ just don’t think.
Perhaps ‘they’ are so caught up in their revenge ideals, that ‘they’ will sacrifice everything for the fleeting gratification of revenge. Julius Malema articulates this attitude quite well: “If we are going to die of hunger, let us rather die with our boots on than die protecting the white monopoly economy. If death comes, let it come – but we must die proud that we defied protecting the white economy”. This, of course, is cheap talk. Julius Malema hasn’t experienced being hungry for quite a while and I’m not so sure whether he is ready to face death.
This socialist economic model will imply (according to those referred to above) an even bigger government, decrease in productivity, less output, increased taxes, increased state interference in the affairs of the private sector, especially through Employment Equity and Black Economic Empowerment, where ‘white’ owned businesses will be denied the right to conduct their businesses the way they see fit, which anyone who knows anything about the basics of sustainable business, will tell you is not sustainable.
This ‘New Economy’ will be funded by increased taxes (especially from those who will be specifically excluded from any of its benefits) and international loans – with dire consequences. And then there is the new prospect of laying ‘their’ hands on the private sector’s pension monies which will open the door to unmatched “pilferage”. Those who passively observed the first round of state capture, will now have their bite at an even bigger cherry. Many can’t wait to join.
Since the monies being made available through the above mentioned means will be ‘easy money’ and controlled by those who will benefit directly and quickly from its questionable proceeds, stewardship and governance will be largely absent, projects will be heavily overpriced (for the benefit of those feeding at the troth) and workmanship will be sub-standard. Since money will come easy, the principles of supply and demand and best price for best quality will not apply. It is a lose-lose scenario, also for those who think they may be gaining now.
Since the ‘New Economy’ will be hell bent on breaking the ‘Real Economy’, unemployment will increase multifold. Those unemployed will be depending on the state’s meager, albeit enslaving, handouts. Some of them will eventually revolt against their hopeless conditions; they will rise up against the state as the cause of their hopeless predicament; some, unfortunately, will continue to believe the ANC/EFF’s propaganda that ‘whites’ are the cause of everything that goes wrong.
Under the ANC/EFF dispensation, the unemployed, poor and marginalised will make up the largest portion of the population. They won’t be part of any economy; they will merely form part of a statistic.
The ‘Real Economy’
That brings me to the ‘Real Economy’. Since businesses functioning in this economy have no access to easy (state controlled) money, they will have to rely on hard work, innovation, reliable products and competitive pricing. These businesses will be led by men and woman who will persevere against the odds.
Although these businesses will be major contributors towards the welfare of South Africa, they will be denied access to all state projects funded by their taxes – unless, of course, they are prepared to give up the right to manage their businesses the way they think fit, including appointing the people they wish to and even give up the ownership of their businesses.
This is not a bleak and disheartening scenario
This all sounds like a very bleak and disheartening scenario. It is not. To the contrary, this ‘Real Economy’ will be the only economy which will survive the foolishness that lies before us. Conducting business in the ‘Real Economy’ will not be easy though, and will not be for the faint hearted.
Those leading businesses in this economy will be characterised by resolve, sound decision making and the ability not to yield under pressure. These men and woman will be prepared to sacrifice, to endure hardship, not conducting their businesses only for self-gain, but also for the greater good, not blinded by the ‘bling’ lying around and which is easy to come by, men and woman living according to a calling, avoiding the trappings of quick gains, the shallow and the superficial.
Those (Black, Coloured, Indian, White) involved in the ‘Real Economy’ are the fortunate ones. They will be the creators of the ‘wealth’ (not only in the spectacular sense) that will feed many; they will be the ones who will sleep well and enjoy the fruit of their honest and hard labour.
They will be the ‘free’ men and woman; they will remain the backbone of our society and defenders of our freedom.
Also read Gerhard’s BLOG, which is supplementary to this article.
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