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Post-1994 Economic Debacle of South Africa: Part I

The Bleak Truth About South Africa Since the ANC Took Power

I’m sure we’ve all learned about Apartheid in South Africa, and how it ended in 1994 when Nelson Mandela became President.

 
We learned in school all was well with South Africa, but like many instances, when large government programs are adopted by and executed, perhaps things never turn out the way they should.

 
Let’s take a sneak peak at South Africa’s economic debacle from an alternative viewpoint the media loves to ignore.

 
Okay so population demographics, the population has decreased among whites from 20% in the 1940’s to 9% as of 2014, and I think it’s now closer to 8%.

 
Life expectancy for blacks in the 1940’s had risen from 48 years in the 1940’s to 61 years under Apartheid.

 
The South African economy grew in the 1960’s as compared to the economic bubbles created by the South African government today.

 

Let’s talk about the South African money supply since 1994.

In relation to the price of gold, the South African Rand has risen 546 times since 1965, much of this rise occurred from the 1980’s to the 2010’s. In relation to the US Dollar, the price of gold has risen 30 times in that same timespan.

 

Let’s talk about the family structure.

Okay, so as of 2014, 35% of families held both parents in a household, 39% were raised by single mothers, 3% by single fathers, and 23% had neither parent in the home.

 
As of 2012, education in South Africa has plummeted, the graduation rate being 44%, with only 12% receiving grades appropriate enough for university study.

 
Meanwhile, and pay attention to this number, as it’s going to reflect the next sections of this work, 60% of youths were left with zero qualification to work even the most basic jobs beyond Grade 9.

 

While South Africa’s educational system isn’t the worst in Africa, it still performs badly when compared to the African Union (AU).

 

Let’s talk unemployment

South Africa has the 8th highest unemployment rating in the world as of 2015.
Since Mandela took over, South Africa has experienced a high unemployment rate, at nearly 25%, among the top countries in the world in terms of unemployment. 40% of blacks remain unemployed, while 8% of unemployment have belonged to whites, but this is changing significantly.

 

Between 1994 and 2014, South Africa has suffered a net increase in unemployment of 2.6 million. With these numbers, and the above, they measure unemployment only of those seeking work. However, when expanded, South Africa’s unemployment between 1994 and 2014 is even higher, at 3.5 million, or 35% of the total population.

 

Remember these numbers.

 
As for welfare, South Africa has one of the largest welfare states in the world as of 2010. An interesting tidbit I came across is a quarter of the South African population live off $1.25 USD per day, if one converts Rands into US Dollars.

 
The statistics for welfare in South Africa, a country which at present time has a GDP Per Capita of around $13,500, and nominal GDP Per Capita at $6,300, are staggering.

 
We have 6% of the South African population contributing to 99% of the income tax revenue. There are 5 people on welfare for each taxpayer, and 71% of the households with children have zero employees so, do the math, are likely receiving welfare.

 

Let’s talk an Affirmative Action Case Study.

The largest electric company in South Africa, Eskom, since 1994, has lost 37% Gigawatt (GW) capacity while the population in South Africa has grown by 38%. This has led to scheduled blackouts by the company in order to continue providing systemic electricity to residents.

 
To add to the disaster, Eskom has been pressured by the South African government to fire 1,081 engineers and 2,179 tradespeople, due to South Africa’s Employment Equity Act, which mandates employee demographics must reflect national demographics in South Africa.

 
Every single one of the employees listed above, a total of 3,260 employees, are whites.
The demographics in South Africa currently stand at:
1) 80.2% Black

 
2) 8.8% Colored

 
3) 8.4% White

 
4) 2.5% Asian

 
Okay, so by knowing what we know now about Post-Apartheid, Part II of this case study will cover what the economy looked like during Apartheid.

 
Thanks for reading.

 

Sources

https://data.worldbank.org/indicator/SP.POP.TOTL

https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/jessecolombo/2014/03/19/a-guide-to-south-africas-economic-bubble-and-coming-crisis&refURL=&referrer=

http://fxtop.com/en/historical-exchange-rates.php?A=1&C1=USD&C2=ZAR&DD1=22&MM1=06&YYYY1=1994&B=1&P=&I=1&DD2=22&MM2=06&YYYY2=2018&btnOK=Go%21

https://fred.stlouisfed.org/series/MABMM301ZAM189S

https://www.news24.com/SouthAfrica/News/Only-33-of-SA-kids-live-with-both-parents-20130311

http://www.ngopulse.org/article/education-south-africa-where-did-it-go-wrong

South Africa’s matric pass rate obscures dropout rate

Is SA’s education system the worst in Africa? Not according to the data

South Africa unemployment: 1994 – 2015

Uncovering SA employment by race

https://mybroadband.co.za/news/energy/121260-eskom-must-get-rid-of-thousands-of-skilled-whites.html

 

 

One thought on “Post-1994 Economic Debacle of South Africa: Part I

  1. Pingback: Post-1994 Economic Debacle in South Africa: Part II – My Freedom Flame

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