155 considers as a long process of investment. From his view, participant A12‟s (22/07/2014) career and investments would have taken a different turn, if he had received capital support from the previous generation. This is evident in the following articulation. “I always tell my children, I was not meant to work. I‟m working because I had to start somewhere. I see myself taking retirement very very early and being independent” (Participant A12 (22/07/2014). The investment for „financial independence‟ maxim is also shared by Participant A11, (18/07/2014), who grew up in a rural area, and did not receive any asset from the previous generation. Participant A11, (18/07/2014) has “just recently started working on an investment that I would say would take care of my pension and would be an estate for my kids when they grow up...in the hospitality industry” (Participant A11, (18/07/2014). The objective for this investment, according to participant A11 (18/07/2014), is
“to break the cycle of employment...the government employment” considering that the participant is a public servant. This example reveals an aspiration for financial independence, and by implication resonates with participant A12 (22/07/2014) that working as a public servant is simply because participant A11, (18/07/2014) „had to start somewhere‟ to use participant A12‟s (22/07/2014) language.
It appears therefore, that the lack of investments from the past generation has created a need for a starting point, as far as the new black middle class is concerned. The state, as already argued, functions as the basis for wealth accumulation, whether in terms of affirmative action policies, or work opportunities in the public service. Evidently, the new black middle class who work for the state interact paradoxically with the state. On one hand, the state functions as a basis for aspirational achievement, on the other, it enables the new black middle class to create long term aspirations.
Importantly, future aspirations of the new black middle classes are likely to delay, due to excessive pressure to distribute wealth, which could have been used for upgrading of the new black middle classes skills. This issue is discussed below.
6.5. THE IMPACT OF INTERGENERATIONAL WEALTH DISTRIBUTION ON
156 what Piketty (2014) considers as wealth accumulation from labor. On the „push‟ side, the black middle classes are determined to reinforce (and back-up) their capabilities, against minor economic shocks. Interviewed participants suggested that, although for the majority of them the state has been a critical „poverty interrupter‟, their ultimate objective is to make use of skills and wealth accumulated through the state for a more sustainable income source outside the state. Analysis of responses from the black middle classes who are situated in the private sector suggests that majority of them are making efforts to ensure that their skills do not remain stagnant. Whether these aspirations are translating into reality is a different question.
Participant A10 (16/07/2014) who is situated in the private sector reveals the attempts to improve skills for economic mobility purposes. He narrates that his choice of journalism as his first skills training was influenced by people at his mother‟s work place. He did not wait until he was sure of what his life passion was, for him, whatever skills could be acquired, he made efforts to acquire them. Only later on after two years of full time study towards Journalism did participant A10 discover his passion for sales, and later on, specifically, vehicle sales. Although an expensive exercise (considering that participant A10 used his mother‟s income to study Journalism, only to change courses) and in conservative assessment wastage of already scarce resources, this mobility is demonstrates not just pursuit of wealth, but pursuit of skills (the capability to acquire wealth). In this case, if participant A10‟s mother had sufficient income; the participant would probably have waited until he was persuaded of his passion. This „waiting‟ was, however, a luxury the participant could not afford. This is a good example of how intergenerational wealth distribution (or lack of it in participant A10‟s case) can shape the pursuit of „wrong‟ skills.
In the case of participant A4 (13/06/2014), important as skills development might be, current economic pressure, (meeting the economic needs of her four children, supporting her sister who is in University, supporting her mother as well as her grandmother on a monthly basis) force her to consider other kinds of income sources which would require less time to develop skills. She has thus opted for investment policies and she is planning to start a Bed and Breakfast as an investment. The choice of these investment options is influenced by the time constraints, of which given the dependence of extended family on participant, (A4 (13/06/2014) taking time off for any extended (unpaid) skills development exercise would
157 threaten the survival a large circle of relatives. This scenario concludes that the participant is influenced by the pressure to distribute wealth, to abandon her skills development.
In both the above cases, the upgrading of skills might occur as a „late life‟ phenomenon, after economic pressures from multiple generations have relented. This points to possibilities for delayed investments, delayed skills upgrade and subsequently delayed or in the worst case scenario absence of wealth transmission to the next generation. These examples suggest the probability of deepening little p poverty which as already argued characterises the current new black middle classes, ultimately graduating it into big P poverty, in the next generation.
As the black middle classes seek to balance their future aspirations and intergenerational wealth distribution, there is a likelihood that the gap between economic functioning and economic opportunities would increasingly widen, mainly due to depreciation of productive networks, stagnant or decreasing income in the face of increasing demand on existing wealth, stagnant technology skills in the context of changing environment mainly influenced by new technology, among other factors. With time, the individual‟s capabilities might become redundant and obsolete in the context of changing environment. This situation illustrates a wide capability gap as shown below.
Source: Author‟s Own
Figure 13: An illustration of a wide capability gap
158 This wide capability gap might not be directly transmitted to future generations, rather, it might constrain future generations from acquiring economic functioning‟s mainly due to lack of resources to utilise opportunities. For example, if parents lack labor skills, they are likely to have less income, which diminish the probabilities for their children to acquire decent education. In this way, the parents‟ capability gap potentially influences their childrens‟
capability gap. Majority of the interviewed participants therefore had to „build foundations‟
by paying for their university fees, accumulate wealth, and for the first time, without generational mentorship, make investment decisions. In the event that the current generation of middle classes fail in any or all the above, the capability gap is expressly transferred to them, from their parents.
This is not necessarily a cause and effect situation. Children can get sponsorships to study, or the parents might get sudden inheritance, which they can dispose to pay off school fees, schools might offer work opportunities for poor children to raise school fees, and so on.
Capability gap in the current generation might therefore not in totality determine future generational capability gap, although it plays a significant role.
When the capability gap is minimal in a given household, the possibilities to increase skills and therefore minimise poverty are high. This is illustrated below.
Source: Author‟s Own
159 Figure 14: An illustration of a narrow capability gap
The complex tensions and continuums, actions and reactions in relation to savings, investments and aspirations, construct an intergenerational development paradigm as far as South Africa‟s economic narrative is concerned. A different economic future- a more developed and less poor society- is therefore emerging, gradual as it might be. That said, though, the ways in which the new black middle classes are burdened with wealth distribution, lead to the conclusion that this different future is unlikely to occur in the current generation of middle classes. Simply because the current middle classes are a transition group. This research contends that economic optimism should be deferred to the next generation, as per the following theory.