When I used to manage a big staff, one of my rules was never to offer anyone more money if they told me that they were considering resigning because they were offered a job elsewhere with better pay.
My reason was that, if I offered you more money, you would probably come back in six months and want more money, because you would have become accustomed to your new salary. Having adapted your needs and wants, you would need to earn more.
I sometimes let good people go, but one of my other rules was never to bend the rules for anyone. Once you start, you never know when
to stop.
I thought about this as I listened to President Cyril Ramaphosa on Tuesday night announcing significant increases in social grants and special grants for unemployed people who don’t receive social grants. The payments are supposed to end after six months. But will they? I predict that there will be huge protests when the increased social grant benefits come to an end. I hope I am wrong.
The money is so little in any case, even with the top-up, and the situation is so dire, that people will use every cent. It will be difficult to tell them that they must revert to receiving R500 or R250 less a month or not receive the R350 a month. In most poor communities, a few hundred rand could mean the difference between life and death.
There have been calls for a basic income grant for unemployed workers and those in the informal sector. The R350 appears to be the first step in that direction, so those who have supported the grant are hopeful that this will continue after six months.
One would have hoped that the decision on the grant would have been accepted under “normal”, not extraordinary, circumstances, in order to erase the inequalities in
our society.
It is difficult to take policy decisions in difficult times and expect them to guide you during normal times. The reverse is easier: policies adopted in normal times should be able to guide you in abnormal times.
The economic interventions are almost revolutionary and should be applauded. But we need to think about what is going to happen afterwards. South Africa’s economy has been deeply flawed and the ANC government has made minor adjustments since it first won the popular vote in 1994. But to deal with the inequalities, which were there before 1994 and have grown exponentially since then, will require radical thinking: the economy needs to be restructured.
It is unsustainable to have a situation where, out of a population of more than 55 million, you have more than 17 million social grant recipients (more than 30% of the population); an unemployment rate of almost 30%; and less than 20 million people in employment, with most below the taxpaying threshold, according to Stats SA data. Our solution lies in creating more jobs, not more people who need government grants.
I can understand why the Cabinet is struggling with long-term solutions to our economic problems. It would have realised that we cannot continue along the economic trajectory of the past 26 years.
The radical transformation of our economy can lead to prosperity for all or it can lead to the destruction of what little we have left.
* Fisher is an independent media professional. Follow him on Twitter @rylandfisher
** The views expressed here are not necessarily those of Independent Media.