The most urgent issue facing Mzansi ahead of the upcoming elections in South Africa, which are scheduled for Wednesday, May 29, 2024, is probably its 31.9% unemployment rate. President Cyril Ramaphosa pledged to generate 2.5 million jobs over the next five years as he delivered the African National Congress (ANC) election platform at the Moses Mabhida stadium last weekend, according to Times Live.
Ramaphosa claims that he is creating jobs, but the reality is that the government should let the private sector handle this task instead of trying to do it all itself, according to Daily Investor.
The Job-Creation Lie of Ramaphosa
The reality is that the government cannot create jobs; instead, it should foster an atmosphere that encourages the expansion of the private sector.
To be honest, other people have also spread the falsehood about Ramaphosa’s creation of jobs in the run-up to elections. Mmusi Maimane, the leader of Build One South Africa (BOSA), pledged to create two million jobs over the following five years. With remarks like this, politicians may strike all the right chords, but in a severely constrained economy, there is frequently little information on how these millions of jobs would actually be created.
Ramaphosa’s claim that jobs will be created is not new in South African politics, as Daily Investor points out. Former President Jacob Zuma made a ten-year commitment to create five million jobs back in 2011. During his tenure, his ambitious plan collapsed terribly. In a similar vein, as the COVID-19 epidemic struck in April 2020, President Cyril Ramaphosa pledged R100 billion to a stimulus plan aimed at creating jobs.
What About the Youth of South Africa?
When they start looking for work, what will the unemployment rate be? Therefore, the government should not have the authority to create jobs. Economist Professor Thomas Sowell believes that the government should instead give the private sector more authority to expand the economy and generate jobs.
The government doesn’t produce any wealth. Politicians can make claims to be able to perform many amazing feats that they are unable to accomplish by ignoring this truth, according to Sowell.
Here’s another way to look at things. A government can only amass riches by enforcing laws, selling bonds, or collecting taxes. This is not creation; rather, it is the transfer of wealth. Furthermore, jobs are not being created. Furthermore, since state capture began in South Africa in 2008, there has been a frequent shift of money from an effective private sector to a dishonest and inept governmental sector.
2025 And Beyond
In addition, the ANC has chosen to tax the wealthy and big businesses in order to pay for these social benefits and job-creation initiatives. But although the number of individuals receiving social aid in South Africa is only rising (to 28 million), the country’s revenue base is contracting (to 7.1 million). Because of this, South Africa’s economy is still growing slowly and its unemployment rate is still high. And similar empty promises, such as Ramaphosa’s deception about creating jobs.
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