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robt
03-01-2012, 05:18 PM
http://latitude.blogs.nytimes.com/2012/02/29/changing-south-africas-welfare-programs-can-help-economy/


South Africa is the only country in the world that has fewer employed workers than people on welfare, according to the economist Mike Schüssler.

...

In his annual budget speech last week, Minister of Finance Pravin Gordhan forecast for South Africa a growth rate of 2.7 percent for 2012 (and 3.6 percent and 4.2 percent for the two years after that). This means that South Africa’s projected growth is below the I.M.F.’s projections for both the world (3.3 percent) and sub-Saharan Africa (5.5 percent). It is also below projected growth levels for Brazil, Russia, India and China, the BRIC countries with which South Africa supposedly is on a par. This country is an economic impostor: it punches well above its weight in international forums.

...

Only 6.3 million South Africans meet the threshold for paying income taxes, whereas some 16 million receive some form of welfare benefit, like child support and old-age pensions. A large part of the country’s annual budget is earmarked for social spending.

Some very interesting stats and info, a very nicely written article.

The only bit I don't really agree with is:


Yet welfare is a necessity. South Africa is one of the most unequal nations on the planet, a legacy of apartheid. The government has a duty to care for those whose poverty is the structural result of historical conditions beyond their control.

Apartheid fell away 20 years ago, I think we've as a nation have had enough time. Seems like everytime there is some sort of failure to compete we drag out the Apartheid bogeyman as a way to excuse current failures.

Time to face up to reality and stop looking back.

McT
03-01-2012, 06:20 PM
On BuaNews today (?), there was an article saying they are going through the process of re-registration of everybody for social grants. Hopefully this will cut down on fraud, and also those who have passed away and family still collecting on their stead.

John
03-01-2012, 11:23 PM
Only 6.3 million South Africans meet the threshold for paying income taxes, whereas some 16 million receive some form of welfare benefit, like child support and old-age pensions. I am surprised by these numbers, and also concerned. This is just not sustainable. Job creation is a must to turn this around.

robt
03-02-2012, 12:02 PM
On BuaNews today (?), there was an article saying they are going through the process of re-registration of everybody for social grants. Hopefully this will cut down on fraud, and also those who have passed away and family still collecting on their stead.

But even if they shave off a million or two it still doesn't even out the numbers.

The problem as I see it is that our labour laws are so stringent that employers tend to hire very cautiously and would rather make it a temporary or contract position. I think the unions and Cosatu are hurting the unemployed more than helping in this instance by insisting on laws that clearly don't favour a competitive labour market..

And then we don't have great training - not everything requires a university degree. We need to set up more apprenticeships and give companies HUGE tax breaks for doing on the job training.