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Eat, drink, be merry but tomorrow you die under debt load

President Jacob Zuma has warned of another potential financial meltdown and the rand has slipped to new lows against the dollar, euro and sterling, heralding further rises in fuel and other prices. The cost of the staple food of the majority, mealie meal, having already risen 22 percent this year, is about to rise again.

This week the Federation of Unions of SA (Fedusa) pointed out that the average prices of vegetables, meat and transport had all increased in recent months. At the same time, said Fedusa general secretary Dennis George, the disposable income of workers had registered a significant fall.

Despite this background, business is hoping that all the tills in all the towns of South Africa will jingle merrily this Christmas. And business analysts are already predicting that this may well be the case, based on sales for September.

Trade union activists and analysts do not necessarily disagree.

“There is increased pressure now for working-class families to buy more to keep their families happy for Christmas,” says National Council of Trade Unions general secretary Manene Samela.

He and other unionists are aware that sales and marketing departments have been hard at work laying the ground to ensure a boost in retail turnovers. Already in place are various techniques and tactics aimed at propping up bottom lines.

This, in the final analysis, is the business of business, to guarantee the steady growth of profit that, in the process, adds to the statistics for growth in the economy. And growth, as the business lobby and the government keep insisting, is good.

The labour movement agrees – but only if it is “real growth”.

This means more and better jobs along with greater material output and productivity. Retail sales, like increases in insurance premiums and security company profits, can often be the antithesis of real growth.

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