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Zuma hits the jackpot with 40,000 house private jet. June 29, 2012

Posted by warwicksworld in Uncategorized.
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For some South Africans the price tag of the Zuma’s new Boeing 777 Dreamliner aircraft will be R2,000 million. For 40,000 South African families the wait continues.

Perhaps it’s worth reflecting on the various economic discussion threads that were top of mind this week. At the ANC’s policy meeting lack of black control and participation in the economy was attributed to sunset clauses negotiated as part of the new South Africa in the early 90’s. Nafcoc (National African Chamber of Commerce) have called for the creation of a black owned bank to support black businesses.

They have also suggested the creation of two extra ministries – one for black economic empowerment (BEE) and the other for small business. Controversy abounds about the meaning and intention of mooted wage grants and employment subsidies. Somali traders are seen as a problem to township wannabe entrepreneurs. To top it all the president wakes up every morning stressing about what can be done to alleviate poverty.

Maybe it’s time to introduce a new currency unit. 1RDP house = R50,000 Only then will the context of a billion here or there hit home to ordinary South Africans how consumption oriented our economy has become. Call like it actually is. For instance a R100m rand tender irregularity should be renamed ‘Fraud worth 2000RDP houses uncovered’.

The value and the dignity provided in the form of property ownership is the greatest driver of economic growth and participation by the disadvantaged in any emerging economy. There is no question in my mind that a consumption oriented economy will always grow slower than a production oriented one.

Unfortunately the ruling elite have perfected the art of skimming either for personal use or enrichment and it is showing up – in shocking annual growth rates and unacceptably low economic participation by the masses of our citizens. As a final thought, “If a free society cannot help the many who are poor, it cannot save the few who are rich.”
― John F. Kennedy, Kennedy’s Inaugural address of 1961.

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