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END POVERTY SOLUTION
August 23, 2014 4:31 pm / 1 Comment on END POVERTY SOLUTION
HIGH VALUE JOBS, HIGH VALUE PEOPLE, PROSPERITY
In the short term, it is politically functional to create low value mass employment job opportunities on community-based menial work projects. This is not a functional poverty elimination approach in the long term, though. It is simply a way of managing poverty, as well as buying time to contain the potential outward expression of anger and frustration by the poor as long as possible.
Service delivery protests currently ravaging certain parts of South Africa may be a sign of things to come, though, when this kind of poverty management is exhausted, and no better alternatives are in the offing.
Society will in the long term gain by far from investing in high value job creation opportunities across the board. The seemingly relatively fewer thriving in high value jobs as entrepreneurs, innovators, and experts in various technological, as well as societal management skills not only drive the economy through higher purchasing power arising from higher available disposable income, they in turn create job opportunities of a higher value than community based low value mass employment ones. And, they pay tax.
For example, I’ll postulate that, all things remaining equal, and assuming rational behaviour, as well as economic expenditure and saving patterns in a dynamic economy, R.30 000,-/ month paid to one junior-middle level professional creates more real social economic value than the same amount paid to sixty low value mass employment workers receiving R.500,-/ month each. The thought that there are working people still taking home a net of R.500,-/ month in South Africa in 2014 boggles my mind … (Continued in the book: “MACHONA BLOGS – As I See It”. Order Simon Chilembo books on Amazon)
August 18, 2014