It is my contention that South Africa can afford an expanded social grants system that goes beyond the existing provisions for child-care, disability, old-age and military veterans. Indeed, we have been told by the Brettenwoods institutions that we must not spend on social services, and that public services should be privatized. I have always been a proponent of private ownership and the private sector, believing firmly that district, provincial and national government should only legislate and govern; while municipal government should legislate, govern and provide public services. That is logical given that people live in municipalities and that the other systems of government are intangible constructs created out of a need to solve a problem or out of convenience.
However, it is clear that there are people in our country, who have citizenship of our country, who were brought into this world ostensibly out of malice and with great discord aforethought; that they have grown up from dependent children into incompetent adults. These people have both as workers and as the unemployed, both as formal employees and as informal labourers and both as just-slow-and-lazy and as malingerers; wrought such great devastation upon the precious economy of our country, bringing it to its knees; and reducing it to the logic of a spaza shop, a stokvel, a loan shark and a whore – that is to the logic of buying and selling other people’s products at inflated prices, to taking from the many for the few, to borrowing and spending and to “chowing the money” – that the only option remaining is to dump the state.
Get it rid of it. Dissolve the Republic of South Africa. Create a new state, a new republic (ostensibly with a new name), a new constitution, a new government system, a new currency and a new citizenship. Obviously, the new state needs to the be the successor in title to the old state so that it retains ownership over all of the things of the old state. But it will be like when you max out a line of credit in the name of one marginally employed relative for the benefit of the whole family and so then you start borrowing on a line of credit in the name of another marginally employed relative for the benefit of the whole family. It’s a new start, a clean slate and a new name. Naturally the creditors of the old state will demand that the new state take responsibility for the debts of the old state. But that is easily resolved – you place all of the debts in the name of the central bank, as the debts of the central bank in respect of the old currency, you then nationalise the gold mines and seize and hold all of the gold in the central bank; and then you issue a new currency which is pegged to the US Dollar. So that the central bank has to borrow, by issuing and placing bonds to the value of twice the old debts, to finance, service and repay the old debts; while it’s holding gold as the intrinsic value of the economy of the new state; and then it issues a US Dollar backed currency where the new M0 = the old M4. Done.
Seemingly our government is a past master of this dump and run move, given the litany of failed and scrapped economic solutions that have littered the highway of South Africa’s path to economic ruin and devastation. We are a nation that lives on credit that doesn’t exist. Financed by insolvent banks and held together by the hyper-inflated value of the worthless securities traded on the JSE; against which debt is incurred to finance the lifestyles of the supposedly rich. There are not any rich South Africans. We are a nation, a country and land of paupers and beggars. Our government, proudly ANC since 1994, is occasionally called upon to utter the semblance of leadership and in such cases, tearing itself away from the chicanery of public expenditure, it farts and groans with a rheumatoid disturbance in its very gravied disposition.
This may well be the plan of those Sinopolitical South Africans (South Africans who practise what is essentially Chinese or East Asian politics) who have clamoured for nationalisation and more recently for expropriation without compensation. The things that the Sinopolitical South Africans demand if acquired simultaneously would allow for the dumping of the old state and the running away from reality with a new state. This however while seemingly common sense to every comrade and cadre with a smart phone and a social media hunger, is nonetheless completely devoid of any real intelligence. Simply because the problem is one of idiots and wannabe idiots. You see, where I come from, the village idiot becomes mayor. This is to ensure that the government is powerless. The village idiot being abused by everyone with money, influence and power; is unable to refuse an instruction from the cognoscenti and the intelligentsia; and as such is the perfect idiot for the job of wearing the fancy dog collar and leash. However, on my island, and after all these years it is my island, the village idiot becomes president of the country. Now this is a matter of scale and scope and of time and allowance. The formula is simple enough, once the village idiot is chosen, the wannabe village idiots all clamour to be just like the village idiot.
This means that since the idiots are in control and since the wannabe idiots are assisting them, that the rich, influential and powerful have to be actually rich, influential and powerful in order to make everything work correctly, because while fall-guys and useful-idiots are necessary but effective and efficient public services are also necessary. So, in this context, you will understand that the idiots and wannabe idiots get opportunities to be things. Outside of the realm of government, the idiots and wannabe idiots are employed and elevated to working statuses that enable them to be used for purposes known only to the rich, influential and powerful. The problem with this is that your working population, whether formally or informally employed, if afforded opportunity like this, is made up entirely of idiots, well also of wannabe idiots. This means that the state, the polity, the economy and the society is dependent on the competence of a bunch of idiots, and that cannot be good.
Coming back to the issue of South Africa and the dumping and running in respect of the old state and the proposed new state; it is clear that the incompetent idiots have had too much opportunity and that the so-called rich, influential and powerful who were meant to control them so that there would not be any disasters; were in fact themselves idiots and wannabe idiots. Alas this means that the old state was ruined by idiots, but this also means that the proposed new state would be unfortunately created by the self-same idiots. And who would run the new state, the new polity, the new economy and the new society – you guessed it – the same idiots. So, dumping and running to get away from the misfortunes visited by the idiots is not intelligent as you are simply giving the same idiots another chance to make another mess of the public good. This is why Timocracy, Oligarchy, Democracy and Tyranny are not advised as types of regimes for a Republic by Socrates and Plato in Res Publica.
We could create an Aristocracy to be the regime of our Republic, but few if any of the so-called leaders of our country would qualify as Philosopher Kings or as being possessed of souls made from gold and silver. Indeed, given how dependent the traditional leaders are on the considerations made for them by the government, who naturally wish the traditional leaders to be docile and compliant, it is uncertain whether an Aristocracy would ever see the light of day. So, to recap, we cannot dump the state, we cannot get rid of the idiots who ruined the economy and we cannot establish a proper republic. So, what can we have? But there must be somewhere for South Africa to go other than tribalised civil war, which is quite imminent, given then economic reality that faces South Africa. Perhaps more beggary with our friends? That is our international trade partners who want unfettered access to Africa’s resources and markets and who want uncompromised access to Africa’s leaders (the village idiots) and governments (the wannabe village idiots).
We could refinance the state with a new government bond – but unfortunately, we are in the territory of junk status so the good, long term money is not looking to buy South African government bonds. We could refinance the state by refinancing the Development Bank, opening it up to investors and other central banks from around the world, and then using the Development Bank to refinance the public sector. We could go blindly into the rage of BBBEE Privatisation and sell all of the Public Enterprises and Parastatals to the ANC’s leaders, members, comrades, cadres and activists, in whatever t-shirts they may currently find themselves currently, who would obviously be deployed to such purposes. Overnight we would an entire generation of bankrupt black billionaires living like larni’s on the margins of their debt financing over worthless, insolvent positions and assets. Alternatively we could refinance the state by simply pegging the South African Rand as it is now to the US Dollar, and set the South African Reserve Bank to buy gold cheaply from South African gold mines and refineries and to hold gold relentlessly to drive the gold price up, negating the need to actually buy and hold US Dollars to tangibly back the currency.
There is one other option.
We could pay the idiots to stay out of the economy and vigorously use the competition commission to force the CPI down to its absolute minimum (near zero) level. For as long as competition and cheap credit for businesses is a strong feature of the economy, we should be able to make the pay-outs last so that the idiots are effectively bought out of economic participation. Currently we provide social grants for child-care, disability, old-age and military veterans. But with some common sense we could restructure and expand the social grant system per person as follows:
- R5000/month Child-care Grant (Up to the age of 12 years old)
- R5000/month Youth Grant (Up to the age of 24 years old, provided that they are in school, college or university)
- R5000/month Disability Grant (Until death, provided that they are not employed in any way)
- R5000/month Unemployed Women’s Grant (From the age of 24 years old until the age of 50, provided that they are not employed in any way)
- R5000/month Unemployed Men’s Grant (From the age of 24 years old until the age of 50, provided that they are not employed in any way)
- R5000/month Military Veterans’ Grant (Until death, provided that they are not employed in any way)
- R5000/month Old Age Grant (From the age of 50 years old until death, provided that they are not employed in any way)
This would enable us to reach out to almost every sector of the citizenry and offer the incompetent, who would rather have an easy way to get out of having to contribute hard work, a chance to sit on their proverbial arses, stuff their faces and social-stream their lives away. But wait that’s not all. If we expand the Home Affairs National Identification System to include primary mobile numbers – then we could with the IEC create an application that would allow every citizen to vote on every decision being taken by their municipality, their district, their province and the nation – enabling real-time referendums and public opinion polls to guide the decision-making of the political leaders and administrators (the village idiots and the wannabe village idiots) and giving the idiots and wannabe idiots as well the incompetent and the malingerers something to do with their time – which would be more productive than making a mess of the economy.
The economic benefits of the idiots not destroying the economy would far outweigh the economic costs of this expanded social grants system. As an additional measure benefits could be revoked permanently if the beneficiary commits a crime or is complicit in the commission of a crime. So instead of the idiots ruining the economy, the idiots can ruin the polity and the so-called rich, influential and powerful (who aren’t actually rich, influential or powerful) can help them do it. All this while leaving the work to those who actually want to work. Seems sensible to me. Now before the criminals start asking me to pay them their pay-outs now, myself, let me say that this is a proposal that the state should pay the people according to the expanded social grant system – not me – I have stopped paying for the ANC, I have stopped pay for the ANC System and I have stopped paying for South Africa. So, don’t trouble me for money according to this system or any other – you won’t get any.