Cape Town - Responding to a call from Finance Minister Pravin Gordhan for budget tips, Fin24 user Wynand Meyering says investing into modern technologies and getting modern export industries going will translate into jobs and wealth for everyone.
What should the Finance Minister Pravin Gordhan be focusing on? Look at China, South Korea, Taiwan, Israel - those economies are growing at 6% per year - when there's a commodity boom or nothing.
Modern economics is about gaining momentum in global exports and dominating specific markets. And for that you need the stock market, to focus on your competitive advantages, your economic strengths and seeing that enough investment and money flows throughout the entire economy - so ownership doesn't matter, because money and investment flows throughout the entire economy; whether it is local or foreign it is gaining momentum, gaining investment.
Look at the United States, there's direction: investment into modern technologies, modern exports, modern technological product and export development. So stop wasting time, money on things are not important and get those modern export industries going and everyone will have a job, have wealth.
The unemployment rate in the US is 4%; Malaysia is 4%. Just to be able to reach that point of 4% that most in the world get will be an achievement: so get everyone saving, whether rich or poor and put momentum into high growth, high export, modern technological industries - otherwise other nations will grab those business opportunities and dominate those global business markets, and then what do you do? What do you sell then?
Then this country will follow in the same footsteps as Kenya, Tanzania and compete with the billions of poor people in the developing world producing the same low technology, low quality products, getting the same prices as they are getting - low, low prices for low quality products everyone in the world competes in - coffee, furniture, fruits, vegetables, etc.
So economics is primarily about dominating world markets and products and services - dominating them. That's economics; specialisation and global market domination. So gaining momentum in global exports can allow the other smaller business sectors to develop, government can direct investment and growth the wealth, but the idea that wealth can be created by spreading it around has never worked in any economy.
Wealth has to be saved, focused and invested in specific business sectors, business opportunities and products that can provide a huge amount of income for the entire economy; it has to be a big business opportunity. Look at Austria, they are producing 60% of the entire world's plastics - to compete with them you need to build hundreds of billions of dollars of plastic factories.
So if you want to understand modern economics, look at export maps and see how other countries are focusing on specific business export opportunities.
An example of a modern advanced export economy that was as poor as Mozambique 50 years ago - it dominates global products and services today - is South Korea.
A poorly run export economy is Kenya.
So, study export maps of all the countries in the world and see what business sectors they are developing.
Economics is about one concept: business opportunities.
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