Column is nonsensical

Duma Gqubule’s most recent column was very confused (“Load-shedding Switches off SA’s Growth Hopes”, April 30).

There is hardly one sentence that is either accurate or makes sense, which is not surprising since its premise that President Cyril Ramaphosa has “ticked most of the boxes of issues” that business and ratings agencies say he must address is just not true. He seems to have bought into the ANC theory that announcing what he calls “alleged” growth-enhancing structural reforms is the same as actually implementing them.

From that flawed misunderstanding he concludes that restructuring did not work and is therefore not necessary.

He is right that Keynes says aggregate demand drives the economy, but omits the basic formula of Keynesian theory that aggregate demand is dependent on consumption, government spending and investment.

When one component is lacking, another must be increased to maintain or grow it. In our case, government spending cannot be relied upon because of a lack of human capacity and because the money has gone (for reasons we know), so a return to growth has to be led by consumer spending or investment, both of which require the fundamental element of confidence.

The “investment strike” is part of the white monopoly capital lexicography, and is equally nonsensical. Business is in business to invest, not to strike, but local and foreign investment will only occur when there is confidence that the return on the investment will exceed its cost and the riskreward ratio makes sense.

Sydney Kaye Cape Town