The Free Market Foundation in Bryanston gave an insightful talk on 9 July themed Truth, twaddle and ethics regarding the inequality hysteria of Thomas Piketty and the chattering classes.
A recent best-selling book – Capital in the 21st century – by French economist Thomas Piketty, rides on the crest of an astonishing wave of hysteria about wealth, poverty and inequality.
The briefing aimed to demystify the economics, socio-psychology, politics and ethics of the phenomenon.
Speaking at the event was academic economist Vivian Atub, who began discussing the topical issue and the circumstances it results in, as well as how it is measured through the GINI Coefficient (the measure of statistical dispersion intended to represent the income distribution of a nation’s residents).
Atub noted that because of South Africa’s history of discrimination and inequality, the country has been named the most unequal country in the world.
She further stated that there were two main causes for inequality – namely natural, over which we have no control; and discrimination, which is a conscious decision we make.
“The mechanisms that our government has put in place to bridge this inequality like ‘AA’ (Affirmative Action), ‘BEE’ (Black Economic Empowerment) and ‘BBBEE’ (Broad Based Black Economic Empowerment),” continues Atub. “ Twenty years down the line, have these policies worked?”
She feels that government, which is supposed to be officially in line with the Constitution by being non-racial, should look beyond these policies to see how they can be part of the solution – instead of widening the divide.
“While these policies are born out of social or political ideologies, their actual consequences are a matter of economics. Inequality, in my view, is a chance event, and we can make conscious choices to promote growth and employment.”
Details: FMF Bryanston 011 884 0270; www.freemarketfoundation.com
