PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
Mpiyakhe Dhlamini
 
Comments: 9
Article views: 893
 
 
Latest Badges:

 
View all Mpiyakhe Dhlamini's badges.
 

The boat is sinking!!

28 July 2014, 15:23

When one is on a boat, in the middle of the ocean, the primary concern should be staying dry and safe; that can only be achieved if everyone in the boat works towards that singular goal in the first instance and only once the integrity of the boat is assured can one start to worry about such things as catching fish or outracing other boats.

The captain is tolerated and obeyed as long as he does not lead the boat and crew to destruction, no single person is more important than the vessel and without it everyone is doomed.

Well, a country just so happens to fit the into the analogy of a boat like a hand into a glove, specifically it’s economy:without a productive economy, no one can stay afloat. Surely everyone on the boat must do everything they can to patch any leak that may spring up, at worse a person would do nothing but it would simply be gross criminal idiocy to put a saw to the boat in order to start a fire with the wooden planks  even if one were on the verge of hypothermia, more so if the boat has just recently been springing a great many leaks.

Without a boat, everyone is dead, this is also true of an economy:imagine a scenario where south african products were produced so uncompetitively  that no one bought them, government would have to print more money to try and maintain its consumption because of the inflation caused by importers buying foreign goods with a devalued rand, causing more inflation to the point where it is more profitable not to utilise available capital.

That would quite simply be economic armageddon, many would lose their lives because food and healthcare services could no longer be produced cost-effectively. It would take the country decades to recover but even then the after-effects would still be with us because of things like interest payments on loans with unfavourable terms because they were negotiated out of desperation.

It can happen:just consider germany after WWI, zimbabwe more recently and the USA after their civil war in the 19th century. Currently, south africa is overly reliant on mineral exports for forex (this overdependance is one of our boatleaks so to speak), meaning that if something catastrophic were to happen to the mining sector, then we would not have enough dollars to import the things we need (machinery for farms and factories, oil and petroleum) which would mean we would have to exchange whatever rands we had at whatever  rate the market would give us causing the apocalypse I mentioned earlier.

So shutting down production of the biggest forex earner among all minerals for 5 months is crazy-stupid right? Following that up with a shutdown of one of the few local industries generating direct demand for our minerals  for a month is just plain suicidal.

So what has the captain been doing? Surely everything is being done to patch up the leaks? Unfortunately this has not been the case, instead of applying emergency measures to boost production (halt all compulsory mining work stoppages temporarily, pass an emergency bill in parliament for 6 months barring all employees from striking while a permanent solution is found, pass the independent system and market access bill, cut taxes, freeze public servant salaries (it is an unproductive sector so it actually causes inflation), suspend the child care grant and freeze increases on all the other welfare programmes, suspend BEE and AA requirements in Eskom’s build program.

Instead of this; politicians are talking about introducing a national minimum wage, taking away farms from productive people (regardless of how they got them, they are still productive) and giving them to people who have not yet proven their ability, tightening AA and BEE, introducing more taxes (e-tolls are a tax), printing more money (by borrowing more from the reserve bank), making it more risky for investors to put their money into sa (threatening to take 20% of all new mines and barring foreigners from owning land).

I’m not saying that some of these government interventions maybe neccessary, but applying them now would be a disaster because our boat is about to sink, and for some of us it’s the only one we have.

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.

 

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
9 comments
Comments have been closed for this article.

Read more from our Users

Submitted by
Andreas Pluddemann
Young leaders should reevaluate t...

My question to these young leaders: Are they satisfied that their approach to leadership, their rhetoric, the thoughts and feelings they express, are placing them on the path to justice, joy and freedom which they wish to attain? Read more...

0 comments 99 views
Submitted by
Thabi Myeni
Men Are Trash: the movement

If you’re a man you’re probably reading this article because the title rubbed you off the wrong way. I want to start by saying MEN ARE TRASH – I used caps lock to seem extra intimidating because you know, I’m a woman ( joke).  Read more...

0 comments 506 views
Submitted by
Philip De Kock248
Women, prominent role players mod...

In the mid 1990s the people who approached me most often for advice, counsel and coaching were white males. Towards 2000 this changed and the majority were women, often black women, occupying mid to senior management positions.  Read more...

0 comments 54 views
Submitted by
Tafi Mhaka
Dear Vanessa: who is African?

Sorry to rain on your parade. I won’t take much of your time. I’m sure you have more important things to muse over than some silly drivel from a black man. Now I’m going to ask a few questions that might just sound plain silly – or unwise. That shouldn’t surprise you, seeing that you think my type is reckless anyway. Read more...

0 comments 1037 views
Submitted by
Catch up on the trending hashtags...

Social media takes no rest on weekends. Here are a few hashtags that were trending over the weekend, accompanied by a few interesting tweets. Read more...

0 comments 372 views
Submitted by
Nicholas K Mashabela
Secrets, dilemmas within ANC

There are several factors that make it difficult for the ANC NEC to get rid of J Zuma, among them a power struggle within the ANC, tribalism and political and economic dependency. Read more...

0 comments 3961 views
 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on Android Get the latest from News24 on your Android device.

SMS Alerts Get breaking news stories via SMS.

TV Get us in your home, on your television.

 
Interactive Advertising Bureau
 
© 2016 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.