The Generation of Income and the Expenditure Within a State
are chased away. When we consider that every tourist is equal, in monetary value, to approximately R20 000, we can imagine how much value we should attach to tourists visiting our shores. Business tourism, alone, in 2007 resulted in some R2.7 billion in revenue, with approximately 7% of all employment coming directly or indirectly from tourism itself. Tourists are valuable, and when a tourist is robbed they go home and, sadly, relate their misfortune, discouraging others from arriving; this results in a direct loss of income. And money out of your pockets.
South Africa has, at present, one of the highest crime rates in the world. Not only does this mean an increase in expenditure to attempt to stop the crime, but it also means that people leave the country, and foreigners refuse to enter as tourists or as investors. This means that the government’s revenue or tax base is eroded (made less) while at the same time they are required to spend more money in order to solve the problem. This is what we mean by a vicious circle. It is a fact, for instance, that when there is political/social instability, people with good training and wealth tend to emigrate. It costs SA approx. R500-R800 000 to train a doctor. When doctors leave, they take their family, their wealth and their knowledge: this is commonly referred to as the brain drain. In many overseas countries such as Canada it is somewhat unusual to find a person who does not have a South Africa doctor as a GP. The state has to fund the training of another person every time someone emigrates. That’s money out of your pocket.
Countries such as Canada are delighted because, in the past, South Africa has had some of the best trained doctors in the world, and when they moved there, it meant that you paid for their training – their new adopted country (Canada, for instance) received a freely-trained doctor. As citizens we need to ask why these people leſt: most claim that the crime rate made it impossible for them to stay. One can see how social instability can cost South Africa: it is money out of you pockets. Find out how much it costs to train a doctor in SA. Te government has tried to stop this by not making training curriculae available to foreign countries – this has meant that other countries no longer recognise some qualifications obtained in South Africa which is making it difficult for doctors to emigrate there. Whether it is social unrest, lack of training or policing, or lack of personal civic duty – all have negative spill-over effects.
South Africa is also infamous for the loss of lives on its roads: approximately 1000 each month! Some time ago the minister of transport in a Scandinavian country resigned in disgrace because their road deaths were in excess of 450 for that particular year. Each time someone sustains neck or back injuries in a motor vehicle accident, it can cost the state up to R450k to rehabilitate that person: this results directly in money out of your pockets. Imagine what your community can do with this money.
Whenever a citizen of a country witnesses someone causing civil unrest resulting damage to property (such as burning a building down), or witnesses a severe accident, especially due to negligence, they should be aware that there is a direct cost to themselves.
4. Increase of Social Demands With education and a more sophisticated lifestyle, people tend to demand more and more services – living standards rise, people become aware of standards in other countries and these demands place an increased financial burden on all levels of government. Also, with an awareness of Socialism, people expected the government to render services almost free (welfare state) – this usually concerns education, health services and increased financial support for the aged or those wishing to retire early. Oſten the government is also expected to establish state trading organisations, to subsidize local industry and to pay for more and more research into human development.
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