“Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist.” (Kenneth Boulding – Economist.)

If that statement is true – and I’m certainly inclined to believe it – then our politicians (and many others around the world) have got their hands full trying to deliver on their maniacal promises at the last election.

Not only have they not been able to provide the promised 500,000 jobs by the end of the year, the economy has shed 770,000 jobs because of the recession. That’s an annual decline of 5,6%, which means that employment has fared far worse than the economy itself.

If we are to believe the economists, then the economy has started to turn for the better. Personally, I’m not holding my breath. I think we’ve yet to see the worst. Let’s not forget that we have been surfing on the back of the 2010 world-cup euphoria – there has been significant infrastructural development around the country to cope with the looming rush of soccer-loving visitors, which has created a lot of work and a lot of revenue for a lot of businesses.

But when the last fan flies out of the country, we are going to be left picking up the tab – and from all accounts, the tab is going to be more than we can handle, given all the corruption and backhanders going on. What’s going to be worse is the vacuum that will be left, once this development ceases – and cease it must! And this does not bode well for business, or employment, in South Africa. (more…)