Two equal evils, poverty and inequality, form the root of South Africa’s economic problems. Both need to be given the same amount of attention. If only inequality is emphasised, it will create an economy where everybody, except for the elite who have the power, is equally poor, says adv Anton Alberts, chairperson of the FF Plus.
In today’s parliamentary debate on economic growth and an economic transformation model to address unemployment, poverty and inequality, adv Alberts said that if only inequality is emphasised, then a country will end up like Zimbabwe, North Korea, Venezuela, the former East Bloc countries and the Soviet Union.
He says that if all the attention is focused on the problem of poverty, then people will inevitably realise that a strategy is needed that will stimulate economic growth, which will in turn lead to job creation. In this way, people are empowered in a dignified manner and they are no longer dependent on government charity.
“Over time, as the middle class grows, the problem of inequality is also addressed and then the problem becomes less significant. In history, we find numerous examples of how an emphasis on economic growth saved many people from living in poverty, e.g. Europe, especially Eastern Europe after the Cold War, England, Singapore, South Korea, Japan and recently also China and Mauritius.
“These countries embraced a free market system and entrepreneurship and maintained responsible fiscal and monetary policies. They did not focus on inequality, but they made sure that an environment that stimulated the growth of businesses without unnecessary interference by the government was created.
“Unfortunately, the ANC government decided to focus on abolishing inequality rather than on stimulating economic growth and we are now reaping the bitter fruits of their decision in the form of basically no economic growth, the loss of job opportunities, downgrading and ultimately even greater inequality.
“What the ANC government is succeeding in, however, is making all of us poorer and should this trend be allowed to continue, we will all be equally poor before too long.
“The only way to prevent this, is to ensure quality education and health care, less government interference in the business sector and an economy where race does not play a role. Only a new government that cares, that is professional, that does not discriminate and that is not captured can bring this about.
“The question is whether or not the ANC government will be able to do introspection and take action when faced with these facts. Only the government can answer this question, but be warned: the voters are watching you like a hawk,” says Adv Alberts.
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