The Direct Democracy Forum is currently one of the smallest political parties in South Africa, but has significant policies.
We acknowledge that Capitalism is likely the most successful economic system in the known history of man whilst also acknowledging it is badly flawed. In short it serves very few very well and the balance of the world not so well to very badly. While Democracy is probably the best political system man has it too is deeply flawed. Both these flawed systems exist in South Africa.
The DDF’s goal is to have Capitalism thrive while extending its benefits to the larger population and to engage the population more directly in the political affairs of their lives. Our view is that it is better, more profitable and much less risky, to be wealthy in a world of general prosperity than it is to be wealthy in a world of general poverty, and that the population should only be governed by the laws and regulations it has directly approved.
Central to our economic policies is the replacement of conventional taxes (30% or so of the GDP) with a single levy of 1/2% on the broader economy. We call this a Total Economic Activity Levy (TEAL). This is possible because there is a general relationship in South Africa of 1:30 for the GDP : money flowing through the Banking System. A R3 Trillion GDP will mean about R90 Trillion flows through the banks in that year. Each Rand is both a deposit and a payment which sums to R180 Trillion. 37% added for settlements within single banks pushes this to R246.6 Trillion.
30% tax of the GDP of R3 Trillion equals R0.9 Trillion.
1/2% TEAL on 246,6 Trillion equals R1.233 Trillion.
The banks would collect TEAL from their clients and pay it to the revenue service, much like they do with VAT.
This same process can be used to fund a Basic Income Grant (BIG) (aka UBI or Universal Basic Income) of say R5000 per month for every adult South African Citizen while a once in a lifetime Advancement Grant of about R200000 for the same population can pay for tertiary education or other advancement expenditure. We see these grants as a joint investment in the demand side of the economy and in SA’s population, giving them opportunities and choices they would not otherwise have. A BIG will also fund a National Health Insurance Scheme and help fund a Sovereign Wealth Fund (SWF). All this from a 2.165% TEAL (see Teal the Big Picture). We expect the SWF to eventually fund the BIG from profits earned.
A policy to help redress the problems of Democracy is for a Senate populated independently of party politics. This Senate has a rolling population (50% are replaced annually) drawn by a random process from a cross-section of a volunteer population, identified for example, by Age, Income, Education, Cultural Affiliation, Religion, Gender & etcetera, and arranged into peer groups. Thus far some 40 peer groups have been identified. At 10 senators per peer group this equals 400 senators. The legislative assembly and cabinet would legislate and regulate, and the Senate would approve or reject that legislation and regulation. This includes the possibility of a minority veto for discriminatory legislation or regulation. The cost savings from replacing tax with TEAL will more than pay for the Senate.
We do not think these proposals are a total solution for all SA’s woes. There needs to be a framework of sound government policy and administration. In that sense, Cabinet and the Executive will be the executors of the will of parliament and SA’s population, but we think the proposals sketched above will contribute significantly to a more prosperous and happy South Africa.
These, in a nutshell, are the primary policies of the DDF.