LETTER: How South Africa can break the back of unemployment

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There is a way to help the unemployed that doesn’t place a burden on the taxpayer: create the circumstances in which they, or most of them, can be employed

” calls for a third option in its opening paragraph: do we see the government as running a social enterprise into which ANC members at all levels, together with their supporters, dip for their personal benefit?

The issues Madonsela discusses are indeed central to our understanding of the import of our constitution relative to the medium-term budget policy statement and the social relief of distress grant. However, there is a route to assisting the unemployed and impoverished that doesn’t place a burden on the taxpayer: create the circumstances in which they, or most of them, can be employed.

One of the necessary changes could involve removing the stranglehold of the unions on much of formal employment in all enterprises, including government, by allowing the discharge of employees with a minimum of obstacles but subject to a few reasonable safeguards . Another is reducing the national minimum wage by, say, 20%.

 

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