Thursday, July 01, 2010

12.8 Million Workers - 5 Million tax payers – 13.8 Million on welfare.


There is something desperately wrong with these figures.

Only 5 Million tax payers out of 12.8 million workers?

5 Million Tax payers supporting 13.8 million on welfare?

Adding this up I get to 26 million people that are visible in the system.

There are more people in SA than this. I guess 60 million.

That gives me 34 million people that are not working, and also not receiving any welfare.

This is truly hopeless.

Scary.

The employment situation in SA is overwhelmingly desperate, economist Mike Schussler said.

He was speaking at the launch of trade union UASA’s ninth SA Employment Report in Johannesburg.

“There’s been a lot of pussy footing around in SA and a lot of investigation into the country’s employment situation. Some institutions like universities have had a lot of nice things to say, but the fact is that over the last ten years we haven’t got anywhere - so that means that we’ve not listened to the studies or we haven’t done much.”

Schussler added that employment growth in SA’s formal non-agricultural sector added only 2,0 percent to employment numbers while overall employment including agriculture, informal and domestic workers, grew just 4,5 percent over the last decade.

“This is just not satisfactory as we need to see 3,0 percent to 4,0 percent growth in employment numbers every year.”

The number of people choosing not to take part in the economy grew by almost 25 percent while the population in the decade from September 2000 to March 2010 grew by 12,7 percent and the formally unemployed by 3,6 percent.

“This is worrisome and shows a huge cultural change,” Schussler said.

“In ten years time we’ll have another 25 percent of the population saying they don’t want to work and we must ask why.”

Non-participation in the economy could be a result of discouragement but it could also be that welfare cheques were “ruling the roost and people sometimes have no need to work”.

Schussler said more South Africans received money from welfare than from employment with 12,8 million people working—not all for money—and 13,8 million people receiving welfare payments from the proceeds of five million taxpayers.

“I don’t know of any other country in the world where the recipients of welfare are greater than the amount of people who work.”

6 Opinion(s):

Jim Beam said...

I think you are reading it wrong or the article is poorly written.

Total Working : 12.8 million
Taxpayers : 5 million
People not taxed : 7.8 million

Unemployment : 3.8 million

Welfare : 13.8 million

Not paying taxes could be taxi drivers, hawkers in essence the informal sector in South Africa. Now if you break down the stats :

1 Taxpayer feeds on average 2-3 welfare mouths and services for 1-2 taxi drivers each month.

Now look at where the money comes from:

Revenue from corporate tax R165,4-billion and only 10% of businesses pay any taxes. (Business Report, 19/03/2010)

Personal income tax R126,3 biilion

Customs duties were R11,6 billion

The Treasury figures showed that by the end of November the state had borrowed R126,4bn to finance its budget deficit compared with only R26bn in 2008.

Ja boet, lets spend and be happy.

Laager said...

So the total tax revenue is then:
R165.4 +R126.3 + R11.6 = R303.3b
divide by 12 = £25.3b
On a TV program in the UK last night it was revealed that SA has spent £3.5b to stage FWC 2010.
That = 13.8% of 1 years tax revenue.

Lets hope and pray that the tourists that visit SA in the years to come as a result of the FWC publicity will be able to plug this hole and spread the money around the country so that everyone can benefit.

I read that prior to 1994 about 1m tourists visited SA each year. The figure is now 7m/year. How many of those are from Mocambique, Zimbabwe, Swaziland, Lesotho, Botswana and Namibia popping over the border to do some shopping we do not know.

The high prices that have been charged by airlines, hotels, B&B, restaurants, car hire etc during FWC 2010 caused a lot of fans to stay away. Frequently British commentators at the matches have remarked about the number of empty seats in the stadiums. A world cup first.

So if SA wants to dig itself out of this post FWC 2010 financial hole it will have to curb it's greed and realise that what brought tourists to SA post 1994 was that it was one of the best value for money tourist destinations in the world.

Return to that formula and the country could prosper again.

Jim Beam said...

Correct Laager however I did not add in consumption taxes such as VAT and 'sin taxes' but in essence I think they take in about R450 billion a year in taxes and borrow the rest.

It was an expensive waste of taxpayer money and the only way they will make up for it is if say they try an Olympic bid but by 2020 I dont know how much will be left of the place at the rate corruption is going. The Olympics would be easy in Cape Town as all the infrastructure short of an Olympic villiage has already been put in place.

Jim Beam said...

Oh, one last point!

Of the 5 million taxpayers in South Africa, 1.2 million work for the government.

"The target of government [is] to reach at least 80 percent of its 1.2 million employees with HCT campaign"

So in effect, 1 in 5 people in South Africa who pay tax works for the government much like Greece:

http://www.newstime.co.za/column/DavidBullard/What_South_Africa_could_learn_from_Greecebut_probably_wont/9/1642/

These are the stats for Greece:

In 1999, the labor force was estimated at about 4.2 million people.

Labour Force : 4,200,000
Civil Service : 750,000

So 1 in 5 works for the government.

INTERESTING WHERE LALA LAND IS GOING?

Anonymous said...

Just think about how ideal this is for the Big Money boys in The West!
They are behind all mineral wealth in SA and all they have to do is click their fingers and a thousand more desperate souls can be hired at almost no cost. Moreover, they own the banks in SA into which they deposit the hard earned salary of those poor souls. Their puppets in the ANC have only one task: keep the populace angry at The Boer, while the mines stay in foreign private hands.

Anonymous said...

Hi Jim Beam
Well done, you have done your homework but are missing one important point: the Western Bankers WANTED mono-cultural Greece to fail, but they equally WANT multi-culti RSA to succeed!

SA's economy will survive because it is pretty much a private hedge fund!

Common Sense