A recent report from Oxfam painted a bleak picture for the majority of the unemployed as jobs vanish and the rich tighten their purses.
“We have seen this inequality increase which backs up the Oxfam report which in our view is a result of slowing global economy recovering from the global recession and consumerism,” says Mienke Mari Steytler, Head of Public Affairs at the South Africa Institute of Race Relations.
“The rich are remaining rich because they are tightening up while the poor are becoming poorer because jobs are being destroyed rather than being created. We are seeing a slowdown in South Africa with a projected 0.7 per cent growth this year, there are policies which are not working that require revisiting.”
She also added that in South Africa, for example, the country has 50 per cent youth unemployment, adding there were policies the country can change to remedy the situation.
Companies have also been accused of being greedier as corporations cut back on remuneration.
Claire Melamed, Director of Poverty and Inequality at the Overseas Development Institute said, going forward, we need to pay attention to the policies they enact and environment as companies would make decisions which best suit their deliverables.
“We are seeing two trends, what is happening in the private sector which is what companies are doing with wages taking smaller share of what is produced with some government reducing spending on welfare,” said Claire Melamed, Director of Poverty and Inequality at the Overseas Development Institute.
Shawn Hagerdorn; Independent Strategy Adviser said there were many background forces at work in the global economy that needed to be addressed.
Government should adjust their policies to the times we are living in as this has huge impact on political stability, job creation and capital formation.