Fin24

Academic: Transfer wealth

2012-10-18 19:46

Johannesburg - Basic wealth needs to be transferred, Wits academic Chris Malekane said on Thursday.

"Unless the basic wealth is transferred to the people as a whole, as outlined in the Freedom Charter, South Africa will not know peace," he said.

"The root of the income inequalities that afflict South Africa is that our people have been robbed of their due in the country's wealth and the current democratic government sustains this robbery on a daily basis by not tackling it directly."

Malekane said inequalities were obscene and the Congress of SA Trade Unions had put forward proposals that were brushed aside.

On Wednesday, President Jacob Zuma announced the outcome of his second meeting with business, labour, and community representatives, aimed at addressing the country's economic difficulties.

The meeting called on CEOs and executive directors in the private sector, and executives in the public sector to suspend increases in salaries and bonuses over the next 12 months, to signal their commitment to build an equitable economy.

They also called for a national conversation on income inequalities.

A committee would be set up to consider the local and international experience in addressing income inequalities and develop further proposals within the next six months.

Malekane said the inequalities did not exist without a root cause.

"The president knows the truth about this and he needs to act accordingly. What the president and the leaders seek to achieve will not happen. Indeed strikes may die down, but the crisis of colonialism in our country will worsen.

"The crisis in our country will not be resolved through 'voluntarism'. It requires a strong, revolutionary leadership that is unafraid to implement what the people want -- which is the Freedom Charter."

Earlier, chief economist at Econometrix Azar Jammine said the government could lose R5 billion in tax revenue if it implemented the call to suspend increases.

"Assuming that the executive directors and CEOs received an increase of seven to eight percent, South Africa would lose R5bn in tax revenue in 12 months," he said.

Jammine and other analysts warned that freezing salary hikes would deal with the symptoms of inequality, instead of the cause.

Nedbank economist Isaac Matshego said: "It's an appropriate gesture in the current environment. Whether it will lead to any fundamental change in improving relations between workers and employers, that is not known."

Scenario planner Clem Sunter said Zuma had to lead the way by telling the nation he would not take a salary increase and bonus.

"He must be the first to tell us that he is willing to freeze his increase for the benefit of the poor."

Sunter commended the move to freeze salary hikes and bonuses in the public and private sectors.

Comments
  • Eterni80 - 2012-10-18 20:01

    Sure mate, you lead the way, after all, you voted for 'em

      squeegee.pilot - 2012-10-18 20:19

      Please transfer it to my account...

      TSR01 - 2012-10-18 20:23

      Wealth divided amongst many is poverty for many. Wealth earned is wealth deserved! Replace "Basic Wealth" with "Basic Education" (apparently the author isn't getting one at WITS) and you might have an article worth glancing at for more than 2 seconds.

      alan.smart.102 - 2012-10-18 20:33

      my views on this debacle.. http://www.news24.com/MyNews24/FEAR-The-driver-behind-white-economic-power-20120624

      hermann.hanekom - 2012-10-18 20:51

      You cannot transfer or distribute wealth, but you can do it with poverty, Semonatenate - time to wake up dude.

      wim.kotze.9 - 2012-10-18 21:13

      Been waiting for the Openheimers to transfer their wealth my way, but then they transfered it all the way to London.

      liveby.thesword.1 - 2012-10-18 22:47

      and this bloke calls himself an academic?.........please....the people crying out for this transfer of wealth(ANC politicians and voters at large)are the exact reason why African tribes will continue to live in dire poverty....its because of this handout mentality! emancipation and actualization can ONLY come from oneself.....in layman's terms this means go get up and WORK for what you want in life bitch!

      jacques.otto.50 - 2012-10-19 07:40

      ok then i will transfer my debt as i owe more than my income. WTF is this guy talking about

      neil.ross.5473 - 2012-10-19 09:17

      No, no Eterni80, you're way behind the times. The wealth has been transferred long ago - from the hard working taxpayers to the fat, incompitent anc officials via corruption... and the left over scraps of that wealth are given as vote-bait called social grants to the sheeple kept uneducated enough by the anc to still stupidly vote for the anc.

      marc.hugo.75 - 2012-10-19 10:09

      What a dumb (US use) pratt. "Academics" have not earned a commercial dollar in their lives. They suck the public teat. Not to say they are not useful, but on matters of money they know nothing. This guy should go back to his manual: Das Kapital. After all, it's economic tenets worked so well in USSR and the Eastern Bloc.

  • blip.noodlum - 2012-10-18 20:03

    "Basic wealth"? What the hell is that?

      jpstrauss - 2012-10-18 20:09

      I thought he was singing your tune, mister Muldoon...

      warren.slater.353 - 2012-10-18 20:10

      Why not rather give "basic education" then people can earn wealth. Oh yeah it's harder.

      tobydt - 2012-10-18 20:16

      timmy - Because every white dude owns a mine right? Why dont you ask the British mining companies to distribute their wealth.

      jay.kganyago.5 - 2012-10-19 01:29

      Government is the biggest land owner in SA, one thing that can be done is give some of that land to the people. But redistribute money is a disaster waiting to happen.

  • johann.enslin.9 - 2012-10-18 20:04

    Transferring wealth how? What wealth, whose wealth? Do you mean the "wealth" produced by hard work, risk and commitment? Do you mean " white" wealth? Let me tell the "honorable" dimwit that transfer of property without compensation is called theft. Claiming property without acknowledging property rights is a contradiction. By what right do you claim property? By the right op property...really?

      yar.wellnofine - 2012-10-18 20:32

      @ Johann "Transferring wealth" means "steal"

      tsotsibaby - 2012-10-18 20:39

      Are you reading the above article, where do you get this transfer of property without compensation? Addressing inequality does not have to be nationalization without compensation..

      rontheogre - 2012-10-18 21:59

      This is the same educated professor that stated in an interview in 2009 that the government should just print more money instead of SA lending from outside sources.http://secure.financialmail.co.za/09/1127/fox/bfox.htm

  • johann.enslin.9 - 2012-10-18 20:08

    ...and we wonder why kids remain uneducated... If this is the caliber of academics i'm not surprised.

  • jacqui.grigg - 2012-10-18 20:09

    Stuff that! I've not had an increase and/or bonus in four years and I've worked my guts out. Let the people who have gone on strike for above CPI increases take a payment holiday.

  • lydonmcg - 2012-10-18 20:11

    And who exactly is this nobody?

      theo.schoeman.71 - 2012-10-18 21:03

      @craig.demontfortbraganca- Go do your research again - this so called accademic is realy something to laught at.

      wim.kotze.9 - 2012-10-18 21:18

      The US is the home of AA university admissions.

      yar.wellnofine - 2012-10-18 21:33

      Economist - Craig, you can't be serious. An economist who doesn't realise that stealing from one group to squander on another group will collapse the economy. Such stupidity really destroys the reputation of Wits.

      SarelJBotha - 2012-10-19 08:57

      Again it is proven that book learning does not give wisdom or even common sense.

  • tobydt - 2012-10-18 20:13

    "...as outlined in the Freedom Charter" The freedom charter only applies to ANC members. Have Zuma/Motsepe etc distribute their wealth. The freedom charter means NOTHING to me.

  • Thabopt - 2012-10-18 20:13

    They don’t realise that what they are doing is reverse racism. which is not what the previous ANC stood for. Economic freedom to them means taking from the whites and give to blacks. Which won’t work. the so called minority have a firm educational background. Which is what we need us the majority. I believe that if we have enough educated black people we won’t even think of transferring wealth from one race to the other. we can create our own wealth and play our role in the economy. They need to concentrate on educating the masses not economic freedom.

      loodpil.lipdool - 2012-10-18 20:21

      Bravo !

      loki.scribus - 2012-10-18 20:22

      You, my friend, are an island of intelligence in an ocean of obstinate foolishness. I don't care much one way or the other about the wealth redistribution - it's like you said, educated people can replace what gets taken away from them. What I want to know is what these guys will do once they've done the redistribution, and all that has been redistributed is spent. What then?

      tobydt - 2012-10-18 20:49

      timmy - Come on dude, an engineer will NEVER struggle to find work in South Africa. The rest of your comment is pilvered with lies.

      malcolm.moore.33821 - 2012-10-18 20:54

      Well said Thabo - some sense at last! Please call the honourable "academic" mentioned above and how things work in the real world which is a far cry from his theoretical paradise.

      harry.dewet.5 - 2012-10-19 08:58

      This is why Zuma and his whole educational department shall set the example by donating all their bonuses and part of their salary increases to uplift the educational standards of poor black communities. They should also stop their BEE and AA policies regarding all educational institutions to prevent mediocrity and low educational standards in SA.

      SarelJBotha - 2012-10-19 09:01

      Timmy, maybe they employ whites as that is what is meant by "to be free to run a business in which ever way you see fit"? ..or do you hate real freedom? I see no problem in a person hiring people that he thinks and knows he will get along better with. Whites do no owe anyone a job, nor does blacks.

  • savage10000 - 2012-10-18 20:14

    Knowledge is what unlocks the potential of a country so the notion of transferring wealth makes no sense. Unless you are talking about the transferring of the fruits of ones knowledge from one person/group to another, in which case you should expect an acceleration of the flight of knowledge to greener pastures. There is no short cut to achieving economic freedom for the masses...

  • tobydt - 2012-10-18 20:14

    "The meeting called on CEOs and executive directors in the private sector, and executives in the public sector to suspend increases in salaries and bonuses over the next 12 months, to signal their commitment to build an equitable economy." Jacob got a 5.5% salary increase a weeks ago, to be backdated from April. No freeze in his case.

  • ErnaJacobs - 2012-10-18 20:17

    Wealth should be created, not divided.

      craig.moir.14 - 2012-10-18 20:31

      Erna, unfortunately the ANC does not have the ability to create wealth so their only alternative is to 'divide' (read steal) the wealth of those that do have the capacity to create it.

  • Petzer.Franc - 2012-10-18 20:22

    Come and get it!

  • michael.i.wright - 2012-10-18 20:25

    And they refer to this as an academic. How sad.

      savage10000 - 2012-10-18 20:52

      What are they teaching folks at wits these days? Utopian "academic" wet dream.

  • alasdair.muir.796 - 2012-10-18 20:26

    I work frickin hard to earn the money I do, not about to give it away into the bottomless pit.

  • Zahir - 2012-10-18 20:26

    Sars collects R 1 TRILLION rand in taxes for ANC to spend as they please let us transfer some of that

      SarelJBotha - 2012-10-19 09:02

      They(ANC) already do xfer a huge chunk into their own pockets and another huge chunk into bottomless black pockets via social grants. The money will run out, make no mistake.

  • craig.moir.14 - 2012-10-18 20:29

    This person has the audacity to call himself an academic! What exactly does he do at Wits besides making a complete idiot out of himself with jaded politically subversive rhetoric?

  • themba.thwala.98 - 2012-10-18 20:31

    What the hell is the “Wits academic” smoking? The ANC ditched the Freedom Charter a long time ago. Let's look at one of the promises contained in the FC: “The doors of learning and culture shall be opened.” What is happening after 18 of misrule: standards have been dropped (30% is the passmark); textbooks are being dumped and learners remain illiterate even after matric. Some “learn” under trees. The ANC's purpose: keep the masses dumb so that they can continue to vote for the ANC. Let's look at another promise: “The land shall be shared among those who work it.” In reality, ANC leaders have bought shares in mines, some own wine farms, etc. As a result, only they are “sharing” in the land's produce or profits. That is just 2 examples. The Wits academic has probably been living in another planet in the past 18 years

      siphom.mnguni - 2012-10-18 20:54

      Well said, Themba, just observe the top achievers when matric results are announced. Only SABC touching lives will come to their rescue. Do you still remember the boy from the Western Cape with 100% in maths and 88% in science who appeared on TV whose parents who lives in a shach? He wouldn't be at the university now. Damned hypocrites. Loudmouths.

      Thabopt - 2012-10-18 21:24

      By tranfering wealth we are breeding a nation of lazy people. look at whats happening right now. We even willing to kill one another just to get rich.

      themba.thwala.98 - 2012-10-18 22:04

      Yes Thabo, what the so-called Wits academic seem oblivious to is that during the CODESA negotiations, captains of the industry held a separate CODESA after hours and in-between the other CODESA where ANC leaders were given deals to “own” shares under the BEE legislation and for ordinary blacks, indians and coloureds to be given access to meaningful participation in the economy through Affirmative action. That happened in return to the ANC ditching the communist inspired Freedom Charter which is largely a blueprint for nationalisation and communism. That the “Wits academic” is ignorant of this public information which needs a little bit of research further attests to the dumbing down that has been orchestrated by the ANC in relation to their mass support

  • Theo Ferreira - 2012-10-18 20:32

    Distributing wealth will have the same result as a squandered inheritance by a misguided teenager. It will solve nothing. Provide education and rule of law, invest in social upliftment systems like free transport in certain areas and severe tax breaks for small businesses. Oh.. Wait... That needs some actual leadership. Lets rather just divide wealth and call it even.

  • tobydt - 2012-10-18 20:32

    R5 BILLION spent in a year on entertainment by government officials. Lets distribute that.

  • martha.stclair - 2012-10-18 20:32

    But we do distribute wealth every single day, its called paying tax. The fact that the money we pay to the government to run the country is stolen and misused is out of our control. How many hundreds of billions have been stolen from the tax payers, money that if it had been used correctly, could have built schools, houses, hospitals etc. Government must transfer the wealth they have stolen back to the people!!!

      tobydt - 2012-10-18 20:40

      R700 BILLION has been stolen by the ANC since 1994.

  • tobie.vangreunen - 2012-10-18 20:38

    Things are looking better in our dire time of need :) more ppl of all cultures are understanding where the fault lies so our current government should start feeling the fear, true south africans are getting tired of the abuse of our great country and our riches, beware we are tired of all your crap !

  • klip.indiebos - 2012-10-18 20:39

    Coming from an Academic I would expect that he would have highlighted that the key is EDUCATION, not just re-deviding the existing 'cake'. Clearly he cannot see the wood from the trees. EDUCATION!

  • joshua.sematla - 2012-10-18 20:42

    As a matter of interest..can somebody tell me how do u transfer wealth?

      themba.thwala.98 - 2012-10-18 20:47

      I think we should wait for the “Wits academic” to recover from babalaaz first and ask him

      thabo.modiba.7 - 2012-10-18 21:19

      Simple Joshua, the process had long begun. It is as follows: 1. they put their pals in charge. 2. Line up their kids and relatives . 3. Start stealing, sorry I meant transferring. Honestly, do you think there is such a thing as a wealth transfer ? If there's is, then its to their trust accounts.

      hein.huyser - 2012-10-18 23:15

      Joshua, the example on how to do it lies just North of the Limpopo. That very wealthy neighbours of ours, they can tell you how to do it. Man, do I envy their strong currency, their growing cities and the average income boggles the mind, not to mention the high life expectancy, beautifull highways and massive airports, boeings and strong industrial growth, low joblessness and exess food their farmers produce. They have done so well the last 30 years, we definately must follow their example. PS:its just a rumoir that 60% of their population is here in SA. Yip, just a lie

  • gary.desousa.7 - 2012-10-18 20:42

    This is beginning to really look like social doctrine been mouthed,spread the assets equally,except for the top few again. Have we not got any further along the road of building and creating instead of just entitlment thinking?

  • kevin.moxham.3 - 2012-10-18 20:49

    Prof why not create wealth - a major task falls on your shoulders (the institutions)to develop citizens who are employable. Through education one creates opportunity and opportunity if used properly creates wealth. A pity you are stuck in the past and dispaly your racialistic bias, sadly i see your students leaving your class with a sense of entitlement that wealth is demanded not earned...!

  • crracker.crackerr - 2012-10-18 20:50

    And exactly to whom will the so-called wealth be transferred to? The government? Or so-called trustees to handle it on behalf of the masses?

  • george.pito - 2012-10-18 20:56

    What he actually meant is the redistribution of poverty. So many years some will still have nothing else than more children. What are they anyway going to do with wealth they aquire just spend it. How the hell did this guy get a title of an academic.

      lovenergy - 2012-10-19 00:41

      Well firstly all the money that's left after debt has been deducted will be allocated to King Zuma. He will immediately marry 5 more wives in one go and each of his kids will get a mine or state enterprize. Then each of his best cabinet buds will get to scrape thru the leftovers in the barrel. Seeing as the economy will collapse due to econimical instablity no one will work or pay tax woohoo but that also means that the gravy train will run out of fuel so they will have to find other ways of forcing their subjects to work their mines and fields, no worries though cause the made plenty of friends during the arms deal. The little bit of land that will reach the masses will be owned by King Zuma and the comrades will be forced to work the lands and the mines for the King to show their thanks and appreciation.

  • shane.griffiths.94 - 2012-10-18 20:56

    if some of the comments implied in this article were implemented this economy would close within 5 years people we have fallen now to investment destination number 20 - not in the World - in Africa wake up - there should be some form of realignment including Jacob Zuma not doing a R205 000 000 home upgrade.

      shane.griffiths.94 - 2012-10-18 20:57

      fact the most efficient well run best managed most cost effective province in South Africa is the Western Cape

  • sean.strydom - 2012-10-18 20:59

    Never any ideas on how to create wealth only how to distribute it.

  • marius.rossouw.7 - 2012-10-18 21:01

    Hahaha, an academic, hey? For laughing out loud, these people just can't see and/hear. Mr. Academic, please look around... Japan, China, etc. Look at their labour laws and labourers, these people are willing to work. Willing to put in an honest day's work for their low wages. Look at their economies, they excel. Please put on your thinking cap before you utter your opinions again otherwise we might wonder about the 'academic' bit.

  • john.s.stalwart - 2012-10-18 21:06

    At the beginning of the statement I thought the academic was talking about transfer of students from other institutions to Wits,unluckily so the guy chose to ridicule the good name of the school. How can you expect the implementation of the freedom charter now after 18 years of democracy,why wasn't it implemented straightway when Mandela took the presidency,wasn't it for the sake of peace? Now if peace was the main concern then,why not now? How can it be expected that people should work and others just come and collect what others worked for,is not that a way of indirectly stiring the pot of civil unrest,i bet this dupped Wits academic should do his homework again. In this century and era a country'stability is not about contributing the basic wealth but about contributing quality education among the masses and being at Wits why not ask the Wits directors to decrease the ever increasing admission points to that varsity,that way the other part of the FC can lead the way,the doors of learning and culture shall be opened,defend the handy matter before tackling the pocket matter...

      TSR01 - 2012-10-18 21:43

      Actually, I think WITS already lowered their standards by allowing this twit of an author to enroll there. ;)

      john.s.stalwart - 2012-10-18 22:51

      I so much as wondered as to how the dude even is a Wits graduate,he appears to be uneducated realy,if he's a political analyst i advice him to enrol for another course,mayb medicine so he can talk with diseases,he seems to have a better relationship with them and that way he'l stop making superflous lame comments about economics and economic matters,unfortunately though he'l give the Wits directors a momentum to keep on increasing the APS for fear of admiting nd enroling ruins like him...

  • mmotsamai - 2012-10-18 21:07

    Ahh, im black and i have a feeling this wealth redistribusion wont help me in anyway. What does it mean by the way

  • Roger Zipp - 2012-10-18 21:10

    The basics of wealth creation need to be followed by those seeking or offering a better 'life' in the narrow material sense. I'm sure this does not include tasking amateurs with managing every public project at an inflated price. Unimaginable embarrassment is now a daily hazard for all with any stake in SA.

  • pjg313 - 2012-10-18 21:13

    Even if you take every single white persons house and job and all their money and give it to a black, it still means 7 out of every 8 blacks will not have a job or a house or a car. Do these so-called academics have any connection between their brains and their mouths, or are their tongues directly connected to their rectums?

  • Stewart Croucamp - 2012-10-18 21:48

    So much of the wealth of this country is already in the hands of foreigners in foreign bank accounts. You can have the crumbs. LOL

  • neilpretorius83 - 2012-10-18 21:53

    1) You can't simply give the people what they want. Not if it falls outside of a constitutional framework. As an academic, Mr Malekane should know better than to suggest that democracy be scrapped in favour of crude utilitarianism. \r\n\r\n2) By calling white wealth \robbery\ Mr Malekane is reifying the dangerous notion that white wealth is somehow immoral and undesired (this reinforces that old Pan African view of whites as \imperialists of a special kind\)\r\n\r\n3) The economic pie needs to be grown, not cut up into smaller pieces. The ANC's emphasis on growth redistribution rather than growth stimulation is out of step with economic realities. Their policy proposals serve only to demobilize people by not fostering a culture of self-reliance. Look at their land reform proposals (as set out in the green paper(s) on land reform of 2010 and 2010) which seeks to establish a situation where reform beneficiaries won't own land independently, but rather lease it from government. The state must be in control of everything - the press, national healthcare, subsidisesd trandsport, education etc. \r\n\r\nThis \academic\ would do well to be a bit more pragmatic in his views. The (white) tax base is nowhere near large enough to plug all the holes.

  • caterlink - 2012-10-18 21:56

    Transfer wealth...very good idea...working nicely in Zimbabwe. Then all the whites will leave the country and who will pay for the gravy train? Wake up...have you been smoking your socks?

  • declan.kelly.54 - 2012-10-18 22:00

    Wow. When are SA's politicians and so-called academics going to stop spouting about redistribution of wealth, and start helping to create it? Investors are being chased away, as are educated, skilled individuals of all races. The job creation promised by Zuma's government was limited to creating bloated public departments and jobs in the RDP building sector (all financed by tax payers). The import/export business is more trouble than it's worth, due to excessive red tape and duties. There's only so much to go around, people. Bad management and corruption for self gain is bringing South Africa to a breaking point. Communism is certainly not the answer, Mr. "Intellectual".

  • Gatvol Griet - 2012-10-18 22:05

    Yeah, let the ANC fatcats share all the billions they were given in free shares in mines and big corporations when they got on the gravy train... When they saw all that money they forgot all about the 'struggle of the poor' they were supposedly wanted. The ANC GREED has caused the majority of blacks to be worse off than during apartheid

  • john.cryink - 2012-10-18 22:28

    malekane zuma vavi communist party anc cosatu the whole lot must (put it in a mild way) please disappear

  • gerrit.vanpletzen - 2012-10-19 06:26

    That's 5 Bn less for the president and his cronies to steal!

  • sisie.indola - 2012-10-19 07:28

    I tried to get hold of Patrice Motsepe to distribute his wealth my way but i am still waiting.

  • quartus.vanzyl - 2012-10-19 07:41

    i am white but also poor. can some of this wealth also be transferred to me, or must i be black to qualify?

  • arthur.salvado - 2012-10-19 07:45

    Let's start with the president and all cabinet ministers and fraud associates. They must not get any increases but must get a salary reduction. I would suggest 30to 50 % because after all they do nothing. They fail to attend parliament and when they do........ zzzzzzzzzzzzzz yep they sleep. When they not in parliament or sleeping guess where they are? Katching katching you guess it.

  • robbie.crouch - 2012-10-19 07:46

    Wealth is earned by hard work and, nothing else.

  • sidney.gilroy - 2012-10-19 07:49

    Here`s the problem. The cake is only THAT big. And we are expecting quite alot of quests at this party. If ALL the wealth of white people in the country was to be divided amongst ALL the black people...ya`ll will be getting less than a R 100 each. Shame. You are really in your moer in.

  • salahudin.david - 2012-10-19 07:55

    Where is Chris Malekane's CV? I can't find it anywhere... What does he do at Wits?

  • deon.louw.7505 - 2012-10-19 08:27

    It won't help all as money will flow back towards the wealthy. We need to educated the people to save. Monthly savings is the best way to accumulate wealth and it is sustainable. You don't help anyone in giving them money: "Rather show them to fish than to give them fish".

  • SarelJBotha - 2012-10-19 08:34

    Clearly another liberal with outdated ideological ideas. Wake up man, it is the ANC policies and corruption that has prevented poor people from working and bettering themselves.

  • andiswa.vilakazi - 2012-10-19 08:48

    Zuma is accepting his house to be renovated for 200m yet he is requesting CEO's who work hard to keep companies profitable to refuse their incentives, yeh right, he must use that money to build people proper houses and stop stealing our tax money!!!!

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