The Wealthfare State: Government Spending Undermining Social Stability

By Anneke Scheepers.

It is not that there is no wealth in South Africa – in that the growth of the South African Economy if a good deal better than that of its neighbouring states, we still see a severe lack in the distribution of that wealth.

In South Africa we are not unfamiliar with political show that is perpetuated in South Africa as well as Africa at large. The elaborate escorts, multi-million rand homes and the like. Newspaper headlines consistently call attention to reports of the elaborate expenses that government officials end up being to tax payers. The South African President costs tax payers R103m per year – R200,00 per minute (Sowetan, August 21 2012). This is worrisome on two scores, firstly there are long lists of social issues that need financial assistance; secondly the percentage of tax payers in South Africa is so minimal that funds attained from tax payers ought to managed correctly.

The trouble is that it is not only the president who has the country’s coffers largely at his disposal. The mind-set has trickled down into various other levels of government. There are rumours of state budgets covering weigh-less classes for individuals. Rumours are not to be mistaken for proven fact but where there is smoke there is fire. In addition it is common knowledge that there is a huge lack in productivity when it comes to civil servants and that results take time to be met if at all.

While it is not that the South African government is all that bad but nor are we all that good. It is not the purpose of any government that acts in accordance with the interest of its people and that practices good governance, to extract capital from largely impoverished population and those who are in a better economic position are taxed highly. A ‘Robin Hood State’ does not work in essence, what then of such a state that does not give to the poor. A state which taxes its work force and then keeps the wealth within its ranks only illegitimizes and discredits itself.

It is not that there is no wealth to distribute among struggling South Africans, the problem is that the wealth does not reach its end. An example of this is further that when fuel prices rise and the cost of living increases and people are less and less able to sustain themselves, it is guaranteed that those people will become angry. With this comes strike action and protest – which when left unattended results in the sweeping wildcat strikes that South Africa has seen in the last year alone. We cannot keep treating the symptoms without drilling to the root of the issue and that is that people are not receiving what they were promised while the are expected to give more (in the shape of tax especially). Consequently – South Africans are bracing themselves for a devaluation in the value of the Rand.

Those who are meant to ensure that the above does not happen are in actual fact championing the cause in the complete opposite direction.

Malawian President, Joyce Banda, is in the favour of Brittain as well as the World Bank – for two reasons. In terms of the latter, Joyce Banda has taken the World Bank’s advice and devalued her currency, which has encouraged investment. She has also received a 220m Pound Sterling injection of funds into her country’s economy which was due to her cutting back. Her presidential jet has been sold, the fleet of Mercedes Limousines were sold off as well as President Banda giving herself a 30% pay cut which results in her earning similarly to mid-level South African government official…

So while schools have no books, the grand convoys continue. It doesn’t follow that a country ranked #90 in the world in terms of its economic growth would have a president whose income is ranked the 11th best in the world. We cannot expect a law abiding citizenry if those who are meant to set the example are failing in their task. This leaves a lot to be desire in terms of how the South African government and more specifically, the presidency, is to be understood. As afore mentioned; it is not that there is not wealth. There is just no wealth to share.

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