DA's Plan for Growth and Jobs - Democratic Alliance

The situation is exacerbated by policies pursued by the ANC government that have activelycreated a system of economic ‘insiders’ and ‘outsiders’.For business and political elites with privileged access to employment opportunities, or thosein positions protected by South Africa’s rigid labour regulations, life is relatively comfortable.They have an interest in maintaining the status quo. COSATU’s (at times violent) oppositionto the Youth Wage Subsidy is a case in point.Closed business networks, excessive bonus payments, steady wage increases, andgenerous government spending have enriched this minority.Millions of young school and higher education graduates, on the other hand, cannot accessemployment because of high barriers-to-entry in the labour market. Entrepreneurs with thepotential to inject dynamism into the economy and create jobs are constrained by high costsand considerable red tape.The poorest South Africans remain excluded because capital assets remain out of reach,and patterns of settlement continue to keep poor households far from centres of economicactivity.On top of this, the administration’s preference for economic insiders means it is reluctant orunwilling to challenge the status quo and open up the economy to greater competition. Thishas resulted in an ever-rising cost of living, with particularly steep increases for those itemsthat affect poor households the most: Food, fuel, electricity, and transport.For many South Africans, the lived reality of marginalisation and exclusion continues to thisday. The past is still with us. But we do not have to go any further down this road.25 | P a g e