“The problem with socialism is that you eventually run out of other people’s money.”

This famous line by former British Prime Minister Margaret Thatcher reminds us that while government handouts may sound good, someone still has to foot the bill.

In all the hanna-hanna over the proposal to increase VAT by 1% over the next two years, it is worth recalling from 2020 Sars data that 5.2 million individuals, (representing about 9% of the population), contribute 40% of South Africa’s total tax revenue. Breaking it down further, about 20% of individual taxpayers contributed to 75% of personal income tax revenue.

At the same time some 28 million people now receive social grants, including the R370pm Covid relief grant that was supposed to be temporary (but lives on, miraculously).

It is painful that for so many South Africans this is the difference between eating and going hungry. Equally painful is watching this and knowing that a storm is brewing. The government has painted itself into a corner.

Finance minister Enoch Godongwana told Moneyweb that he had cut spending and not even considered austerity measures, because he was “sick and tired” of austerity. I don’t know how you can be sick of something you’ve never tried. SA has 75 members of cabinet – larger that Germany, UK and Russia! Throw in a couple of SUVs for each, first class travel, bodyguards and houses, and that’s a pile of money. Our cabinet wouldn’t know austerity if it bit them on the bum!

To continue the Thatcher insight, a government that doesn’t make money, but instead borrows it, or simply takes it from those who work to buy votes from those who don’t, will perpetuate dependency, entrench inequality and eventually go broke and lose power.

We live in interesting times. US president Trump has kicked over the apple cart, the superpowers are at one another’s throats (again), the world order is changing and South Africa has not very wisely put itself in the thick of it.

SA has been scratched off America’s Christmas card list and that’s not good, even if some like Gwede Mantashe are puffing their chests out and saying bravely that America can go jump. It is never a good idea for the smallest dog to pick a fight with the big dogs. SA’s ambassador has been kicked out of the USA! For badmouthing Trump (and promoting Hamas, don’t forget).

No good can come of it.

* * *

On a more positive note, it was my pleasure to spend a day in Alberlito hospital last week for a minor procedure.

Every aspect of the visit was smooth and efficient, from reception to the ward where the nurses were friendly, the room was scrupulously clean and airy and everything was like clockwork.

* * *

She wrote: “Your adorable.”

I responded, “No, you’re adorable.”

Now she thinks I like her when all I did was point out her grammatical error.

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