Inqaba ya basebenzi Number 2 April 1981 - DISA

This is revealing the slender bull
of the economic upturn. As has
consistently been the case since the
Second World War. the upturn in
the economy means that manufactured
Imports rapidly overtake the
value of exports.
In 1980 the value of imports of
manufactured goods was R8 222.7
million. If it had not been for the
earnings from gold, other minerals,
and agricultural exports, the trade
account would have been in debt to
the tune of Rll 198 million.
For 1981, the bourgeois experts
are predicting that even if the gold
price averages $500 per oz, there
could be a total deficit in foreign
trade of R2 000 million, although in
1980 the earnings of gold and other
mineral and agricultural exports
produced a surplus of R3 000
million.
A slow-down in the economy is
already becoming evident. There is a
flurry of readjustments in the
forecasts for economic growth in
1981 by bourgeois economists. The
predicted growth now stands
between 4% and 5%. With the
slow-down, the working class will be
expected to foot the bill, with further
attacks on wages and living
standards.
During the economic upturn
between 1978 and 1980 the workers
have struggled to recover the huge
losses suffered during the years of
stagnation. There have been important
partial gains through the
massive strike movement and the
tremendous growth of trade union
membership. For some workers,
living standards have risen slightly.
Yet the boom in the economy has
done nothing to improve general
standards of living. On the contrary,
while the profits of the capitalists
increased, the workers' overall
standards of living have seriously
deteriorated
Of 41 companies and groups
declaring their profits for 1980 in the
last two weeks of February 1981.
only three showed profit increases of
less than 20%. Most increased
profits by between 21% and
150%—and Toyota. Group Five,
and Gresham Industries increased
their profits by over 300%.
At the same time a recent
investigation in Soweto showed
thai, between July 1978 and
December 1980. wages increased by
Despite record profits in 1980, black working people fact continuing hometessness an
hardship.
less than 20%. But in the same
period, the prices of the goods
bought by the workers rose by almost
40%. Thus, because of Inflation,
workers' living standards fell during
the period of 'boom' by 20%.
At present, the official rate of
inflation is 16% per year, and is
expected to increase to 19% by the
end of this year. Food prices are
rising at about twice this rate. Living
standards of those at work will fall
sharply.
With the slow-down in the
economy, unemployment (currently
around 2 million) will mount even
faster again. The working people are
going to be plunged into even greater
hardship. This is the inevitable
consequence of a capitalist economy
in South Africa with the world
capitalist economy in crisis.
The workers must fight to defend
their living standards and their
jobs—or be pushed into even greater
depths of misery and poverty. To be
successful this fight will have to link
the demands for decent wages, for
jobs, for an end to rising prices, to
the fight to end the capitalist system.
Elections
Faced with this economic impasse,
the bosses lack resources with which
to tame the mass movement. Nor, as
some of their strategists now freely
admit, can they win solid support
among, or 'strengthen the black
middle class.
Instead the ruling class faces new
problems from the side which
previously gave solid support. The
crisis of the economy is eroding the
privileged living standards of the
white workers. At the same time
they, and the white middle class, see
colonialism and white privilege
under assault throughout Southern
Africa.
The capitalist politicians in whom
the white workers have misguidedly
put their trust, are making promises
of reforms. Though these 'reforms'
dissolve into dust, they increase the
insecurity of the white workers. They
are losing confidence in the
Nationalist Party government which
protected them so long.
Against all these pressures, the
ruling class seeks to end its paralysis
by removing the restraints on its
exercise of state power (even
whittling down the 'rights' of the
whites). This Is to enable them to
take more decisive and vicious action
against the entire working class in
defence of their profits in a shrinking
economy.
Already, under its smokescreen of
reforms, the Botha regime has
speeded up this process by reinforcing
and streamlining the slate
apparatus.
Botha has cut the number of
government departments, and set up
a series of new inter-departmental
committees, tied into the Prime
Minister's office, and headed by the
State Security Council.
While still Minister of Defence.
Botha and General Magnus Malan