Facing the Repercussions of the Apartheid

It has been 26 years since the apartheid in South Africa has ended, marking the end to the injustice the indigenous people have received in their own homeland. However, did the inequity really end? Currently, 10%, in which majority is white, holds 80-90% of South Africa’s wealth (Orthofer). While the majority of the black population does not hold any considerable amount of money. Why has the wealth inequality increased after the apartheid? This can be attributed to the South African government’s lack of initiative to solve this issue, as well as the fact that the apartheid itself has created a large wealth gap to begin with. Wealth inequality is an issue that is relevant in countries around the world, and by finding a solution to this issue in South Africa, it may be the key to solving the problem in other countries as well.

One reason why the wealth inequality has not decreased is because South Africa’s government has shown little action towards this problem. Minimum wage is considered to be a way to improve inequality, but The New York Times states that South Africa does not even have a minimum wage (Onishi). By creating a minimum wage, the government would be taking the first step to support those in need. Alongside the absence of a minimum wage, South Africa’s taxing system is can detrimental to the hard-working middle and lower classes. Tax is based on a person’s income rather than a person’s wealth. Although this is effective in many countries, that is not the case in South Africa. The M&G, reveals that the middle class earns 30-35% of the country’s income with a total of 5-10% of the country’s wealth (Orthofer). In contrast, the upper class earns around 55-60% of the income (Orthofer). Although 60% of the income seems very large, it is quite small compared to the 90% of wealth the upper class holds. The middle class is getting taxed with around half of the upper class’ tax while their wealth is only a fraction of the upper class’. This gradually becomes an issue as the middle and lower class’ wealth has a slower increase due to taxes.

The underlying reason for the wealth gap is the apartheid.  The Conversation implies that the wealth gap has gotten larger as wealth from the apartheid era has been passed down from generation to generation (Orthofer). Because of inheritance, the wealth continuously gets richer as the poor gets poorer. During the apartheid, the white population dominated South Africa, creating an intended wealth gap. Because of this, the majority of the black population is in poverty while the white population prospers. According to The Guardian, 80% of the top 1-5% richest in South Africa are white (Allison). This continues to show the difference in wealth between the different races in South Africa. With the ever-growing wealth gap, it becomes harder to manage as the gap gets larger and larger. Although people are trying to fix the mistakes of the past, it is apparent that the effects of the apartheid are long lasting, and they will not easily be fixed.

Although ending the apartheid has “officially” ended discrimination and inequality, the consequences of the apartheid are still seen today. Although distributing the wealth will be a difficult task and the wealth may never be equal, the South African government can try to even out the wealth more. by implementing heavier taxes on the wealthy and distributing the money to the poor, South Africa can work to solve this serious problem. After decades of injustice in their native land, it is time that the indigenous people are given the opportunity to prosper.

Works Cited:

Allison, Simon. "'Black Economic Empowerment Has Failed': Piketty on South African Inequality." Guardian Africa Network. Guardian News and Media, 06 Oct. 2015. Web. 08 Mar. 2017.

Onishi, Norimitsu. "South Africa, a Nation With Sharp Inequality, Considers a Minimum Wage." The New York Times. The New York Times, 15 Feb. 2017. Web. 05 Mar. 2017.

Orthofer, Anna. "Figures Suggest SA Has the Highest Concentration of Wealth in the Hands of a Few." The M&G Online. Mail&Guardian, 4 Aug. 2016. Web. 08 Mar. 2017.

Orthofer, Anna. "South Africa Needs to Fix Its Dangerously Wide Wealth Gap." The Conversation. The Conversation, 16 Mar. 2017. Web. 17 Mar. 2017. Web. 05 Mar. 2017.

"This Is the Average Salary in South Africa by Race and Industry." BusinessTech. 26 July 2016. Web. 07 Mar. 2017.

Warigi, Gitau. "Xenophobia Is Back in South Africa, and the Likely Reasons Why It Festers."Daily Nation. Daily Nation, 5 Mar. 2017. Web. 17 Mar. 2017. Web. 7 Mar. 2017.