Phillimon Mnisi says the glitter of black diamonds is turning hazy

SOUTH Africans are hopeful that market forces will regulate to rescue us from the dwindling negative income, through a return to equilibrium where we will be able to realise the values of our input.

But that seems a mirage since government intervention through peculiar methods to stimulate the economy and investments does not make things easier.

The black diamonds (middle class) are meant to be the economic drivers through easy access to credit and spending, but money-illusion has resulted in huge debt due to lifestyle, while re-investment is far from their objective. Slowly, their glitter is turning hazy.

The recent statement that small business is diminishing should be worrying if we consider unemployment - a bane of the country's economic emancipation.

With the government having run out of ideas on how to stimulate the market and economy, they have resorted to adverse methods of creating jobs and stimulating the economy.

Although our welfare state needs tax to assuage the inequalities which have been institutionalised by the oppressive apartheid system and service delivery to the poorest communities, it is unsustainable. Tax stifles economic growth and discourages investments.

The working population gets discouraged when they don't see the value of their hard-earned income due to incompetence and corruption, and too much political interference.

Government's desperation is overtly conspicuous through trying to implement policies without proper public consultations. Tax is a very scarce, limited asset and resource to be looked after carefully.

• Phillimon Mnisi, by e-mail