LETTER: Economic system just does not deliver like it did

Jonny Steinberg's statement in his column: “We must acknowledge that the welfare system we have was made for a time that has passed,” must be challenged (“Welfare cannot just be for the frail as in the 1960s,” August 12).

What we must face is that the economic system we have does not deliver what it did in the past. It should be beyond question that to increase employment we need more employers, or existing employers who employ more people.

Of course we must cater for those in need, and the destitute. The prime question should be why there are so many who are destitute and in need. Why are there not more employment opportunities?

The answer lies in government policies that deter new or further investment. Give away 30% before you start to recover anything? (the Mining Charter). “Free rent” of 20% in new oil and gas investment? Ports that don’t work? Not enough electricity to start a new mine? Shocking lack of municipal services? Corruption continuing despite revelations from the state capture commission? The list goes on.

Steinberg needs to get people to look at the root causes, instead of focusing on Band-Aid solutions. Another question he dodges, or obfuscates, is the effect of ongoing infusions of cash into communities. The US has been doing this for years, with precious little visible result. I am looking forward to his “evidence” in the next column.

Eric Carter, Via email

JOIN THE DISCUSSION: Send us an email with your comments. Letters of more than 300 words will be edited for length. Send your letter by email to letters@businesslive.co.za. Anonymous correspondence will not be published. Writers should include a daytime telephone number.