Don't blame the mining crisis for a recession: iLIVE
I love the way politicians spin things ("Mining strikes could trigger a recession", yesterday). I think we need to understand that failed economic policies are the real cause of recession.
You have manufacturing way down from where it used to be. The market (through poor import control) is flooded with cheap goods from certain countries. You also have a situation where tens of thousands of businesses have closed since the recession reduced employment and their ability to pay tax. Then there's the food "almost crisis", with increasing amounts spent on food imports.
You have employee productivity at a 40-year low (according to a November 2011 Adcorp index) and skyrocketing inflation. Do you really think people believe the 5.8% inflation number put out?
You have households with a debt ratio of 76% and unsecured lending running away. You have skills shortages, corruption and failed Black Economic Empowerment policies.
All this sounds like a slowly induced recession, something I have been talking about for 16 months now. It's coming, South Africa. Hold on to your hat. I do love this country, I just think the government is clueless. Don't worry, my home country, the US, is very similar. They are pulling a Zimbabwe by just printing money. Some day all that printed money will need to be withdrawn. Politicians need to stop the rhetoric.