Business is an ally

Ann Bernstein’s article was depressingly accurate, the more so because she offers no real solution (Millions of unemployed youths need sweeping structural transformation, August 17). Yes, we need “radical economic transformation”, but not of the type bandied about by self-serving politicians, where the meaning is nonproductive redistribution of a shrinking pie.

The only way the problem can start to be addressed is to accept that the state’s ability to fund social transfers relies on business in two respects.

One, on tax receipts on profits and business activities; and, two, on increased employment reducing the pool of unemployed.

Both necessitate a radical change of attitude so that business is embraced as an ally not an enemy, business-friendly legislation replaces antibusiness regulations and, most important, business is rewarded for employment, not punished as is the case now with the payroll tax.

The budget should be looked at holistically. Grants to business to encourage employment and offset lower-cost import competition would be balanced by higher tax receipts.

Of course, there are dangers implicit in such policies, such as inflationary pressures and conflict with players that benefit from the status quo such as the unions, but it is nevertheless worth reconsidering them.

Sydney Kaye Cape Town