Thomas Johnson - The Blog

While discussing the economy and politics the other day, a friend said I am being unfair to Finance Minister Pravin Gordhan .   Other countries like the US and UK – from where he comes – also experienced difficult economic conditions after the crash in 2008.   Unwittingly, he then asked and answered my criticism of Gordhan: these countries implemented measures to mitigate the crisis, including fiscal discipline and austerity measures, as Britain did, while South Africa did not.   Also, he overlooked the fact SA is not a developed country or most emerging markets that have the economic wherewithal and discipline to self-adjust, learn from its mistakes and grow.   And so we came to my main criticism of Gordhan that my friend who, in his defence, is not knowledgeable about economics, doesn’t understand.   Under Gordhan’s stewardship from 2009 to 2014 government debt went from about 30% of GDP to over 50%, undoing much of his predecessor Trevor Manuel’...

Cape Town mayor Patricia de Lille is faux pas prone.  She appointed coyly termed "poo protestor" – or more accurately, “shit-trooper” (apologies to Star Wars ) – Loyiso Nkohla as an executive support officer to Ernest Sonnenberg at a R700 000 a year salary to the amazement of citizens and her own party.  Now, rightly so, the DA wants to "flush him away” – reverse his appointment – because it was improper, irrational and counter its principles. She went to bat for Clifton millionaire developers and supported and approved their controversial plans, despite allegedly being personally acquainted with them , ignoring concerns of a conflict of interest. Now, there is Western Cape’s Premier Helen Zille’s and the DA’s proposal to rename the Green Point Athletics Stadium after Olympic gold medallist Wayde van Niekerk.  De Lille was interviewed on SABC TV news October 17 and said: "There will be public participation, and next February the stadium [will] be ren...

There has been praise and concern for Shoprite/Checkers chief executive Whitey Basson's recent R100m pay packet.  Those who praise it say he is a “ major employer and his and his employees' tax contributions contribute to SA’s growth (sic)”.   This glib, uninformed and obsequious praise of SA’s cartel-like companies and their CEOs hides the fact the concentrated, uncompetitive and inefficient SA economy is harming growth, development and job creation.   Linda Ensor’s article in BDlive Lack of competition in SA enables cartel conduct quoted Competition Commission acting deputy commissioner Hardin Ratshisusu: “Cartels in SA are particularly damaging. They impose price premiums much higher than the world average of about 10%, sometimes reaching 100%”. In July the IMF’s David Lipton warned it’s not only government policy that’s harming growth.     High barriers to entry, protected industries and labour and protective subsidies harm consumers and co...

One of my favourite songs is Peter Gabriel’s “Don’t Give Up”, featuring Kate Bush, from the album So (1986).   The song is about isolation and despair – an excluded man cannot find work, and is considering killing himself. In this proud land we grew up strong We were wanted all along I was taught to fight, taught to win I never thought I could fail No fight left or so it seems I am a man whose dreams have all deserted I've changed my face, I've changed my name But no one wants you when you lose.   Moved on to another town Tried hard to settle down For every job, so many men So many men no-one needs. Photographs by Dorothea Lange in the book In This Proud Land showing Depression-era Americans inspired Gabriel , an activist, to write the song about difficult economic conditions in Britain under Margaret Thatcher.   During a period of prolonged unemployment in the mid-‘90s, I understood “I am a man whose dreams have all deserted”, and “F...