Key topics:
- SA relies on social grants, risking economic collapse.
- Private property rights are key to growth, EWC threatens them.
- SA must balance global ties without picking sides.
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By Vivienne Vermaak*
Good grief! What a dish we have been served by Trump when he mentioned SA and the EWC (Expropriation Without Compensation) Act in his US presidential executive orders. What feasting we have done at the trough of outrage, righteous indignation, and 360-degree racism. No table manners, no counting GDP calories, just wanton emotional gluttony in the service of blaming everyone else.
At our president’s recent SONA (State of the Nation) address, he announced that 28 million South Africans receive a monthly grant. It was a shocking statement, delivered with a smile. This is not an achievement; we have become a nation of beggars. We are not a developing nation, we are de-veloping. With around 60% spent on social grants, who will we rely on to keep filling the begging bowl? Our unemployment figures, GDP and hostile signals to potential investors are putting us on a route to economic starvation. It is time to eat some humble pie. We don’t have the ideological luxury of ordering neat de-constructed salads with the ingredients of our choice. It’s a mixed bag for us, a messy meal. Let’s stew on it and chew carefully.
If you are liberally and democratically minded, bent towards free markets, the latest amendment to the EWC Act is problematic and must be reversed, whether the FMF (Free Market Foundation) said it, Trump said it or the DA (eventually) said it. Private property rights are the cornerstone of a growing and free economy. It was touching to see the fist pumping and patriotism displayed when the USA flexed its thuggish imperialistic muscle against us, but warm hearts do not fill empty bellies. The US is an important trade partner with which we have a large trade surplus. South Africa has a trade surplus of R36 billion with the United States and a trade deficit of R5 billion with Russia, Iran, and Palestine. The maths is simple but the muddle we gotten ourselves into is complicated. While we benefit from trade with the US, there is also a pride trade-off at the same time. The more pride we have the less place there is for wisdom, and then we still have the cheek to try and squeeze a rainbow in. Forget about the overtures of the EU, the money will not manifest when they realise their investments are at the whim of a new array of low-level government officials who snuck into the equation with the recent amendments to the EWC Bill. Anyway, ‘aid’ = ‘debt’ so don’t get excited.
So who should we ally with then? US? Europe? Russia? China? Iran? Yes. All of them, none of them. We can’t be picking sides in international affairs at this stage. We have enough on our plates right here. There is an African proverb which says: “Even the best cooking pot will not produce food.” South Africa is a great pot with enormous potential. In Trumpian terms we have the ‘best pot, better than anyone else” but we need to fill it with food in a sustainable fashion. Grassroots economic growth is the only way. And EWC can’t be part of that, unfortunately. Askies. We have to start saving ourselves and learn how to produce our own pap en vlais for our own plates.
It is a pity that Trump brought the race card into it. Making it about white Afrikaners was ridiculous. It was unnecessary and possibly just a bit of fun for him to see how we jump when it is dangled before us. And how we hopped, skipped and jumped at the slightest invitation. Black, white, pink, coloured, green – we just love ourselves a red herring. Put that in the stew as well, it’s already a bit fishy. The statement was ill-advised and poorly worded but in no way obliged anyone else to reach the same low level of logic and incitement. We, as experts on race on the planet, should know this: you cannot argue for non-racism and then make the whole argument about a different race. You can’t claim something is racist and then simply replace the race you want to benefit with a slightly different hue. It makes it more racist, not less. Come on guys. No more martyrs, now. Hamba kancane. Hamba kahle.
As an Afrikaner, I feel quite awkward with the spotlight thrust upon me because of some poorly thought-through strategy. I consider my words and actions about this cautiously and advise others do to the same. We are on a financial cliff of our own making, and public sentiment can push us over. Play the movie through. Now is the time to ‘hou kop.’ It is a lovely Afrikaans saying denoting a mental state that is above education or intelligence; a state of keeping your head when all about you are losing theirs, and staying focused on your goal. The point of defending private property rights in all forms, land, financial, or movable assets, is survival and prosperity. Will people invest in a future or a country where people fight each other? I think not. “Stadig oor die klippe.”
Stop fighting about Trump, but trust him to act in his own interest. Consume Trump mindfully. Don’t swallow everything he says and feel free to regurgitate. A lot of it can be spat out. Focus on what we can do right here, right now.
The deal with the US is like sweet and sour chicken: somewhat sweet at times but leaves a sour taste in your mouth, and – at the same time – still putting meat on the table (which is technically umami flavoured.) We have to swallow it like that or settle for humble pie and scrape, which will be our just desserts.
Any way this goes, expect to see a lot more Chinese on the menu in the future.
Viva!
Read also:
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*Vivienne Vermaak is an award-winning investigative journalist, writer and public speaker. Vivienne is a Senior Associate of The Free Market Foundation.
