151 clothing and shelter) should not go unnoticed. Decades on, these basic needs have fundamentally shifted, to include items such as transport, airtime, internet as well as education. The „new basic‟ is more challenging to meet, and requires more resources than the
„old basic‟. The fact that the past generation did not have surplus income to invest into a
„future basic‟, which in their context would have been luxury, meant that the new black middle classes inherited a deficit in so far as the new basic is concerned.
6.4. TRANSMISSION OF ECONOMIC ASPIRATIONS AND ASSETS TO THE NEXT
152 black middle classes employed by the state, consider their situation as temporal, and in some cases a trap which needs to be broken. Therefore, while some participants such as A11 (18/07/2014) acknowledge the important role played by the state in providing foundation for social mobility, they reveal an aspiration for economic independence. This of course implies that, public service professionals do not consider themselves as economically independent.
Participant A11 (18/07/2014) especially uses terms such as „the cycle of government employment‟ or “just public servants” or even the capability to “tell kids to be less dependent on government” (Participant A11, 18/07/2014). All these are aspirational statements, which consider economic opportunities outside public service.
Participant A6 (17/06/2014), who is also a public servant, is yet to make investments, preferring first to do research before venturing into any form of investment. Participant A6‟s (17/06/2014) interests lie in stock markets and purchasing software for the purpose of selling.
This participant‟s view emerges from a challenging environment, being 24 year old, having been brought up by his grandmother (who died last year), and providing economic support to his three siblings and an uncle all of who live in the participant‟s grandmother‟s house. Over a third of Participant A6‟s (17/06/2014) monthly salary goes towards supporting his siblings and uncle. Regardless of this kind relationship, anticipating that the situation will change, the participant in question aspires to further his studies as well as complete a short course which he is currently undertaking. Although the state has played a critical role in addressing poverty in Participant A6‟s (17/06/2014) household, the participant seems to delay his aspirations under the current distributional requirements.
For participant A3 (10/06/2014), there are plans to acquire property, for the purpose of bequeathing to her two children. Also a senior public servant, similar to Participant A11, (18/07/2014), participant A3 (10/06/2014) considers the state as a stepping stone to economic independence. There are, also, parallels between Participant A11 (18/07/2014), participant A3 (10/06/2014) and participant A12 (22/07/2014), as far as the transient perspective on public service. Participant A12 (22/07/2014) especially sees himself retiring early and achieving economic independence through starting a private practice. He thus points out the following: “I want to guarantee you that I don‟t see myself working after the age of 55 years, I should already have opened some opportunities for myself...not in government but in the private sector” (Participant A12, 22/07/2014).
153 All the aspirational based investments noted above, assume that current socio-economic inter-relationships will shift, relieving the respective participants of some economic commitments, and effecting surplus which could be used for investments. One of the useful lessons from the foregoing trends and views is that, in the interim, the state is a powerful player in empowering the new black middle classes in achieving short term goals. For example, those who are able to cumulate capital for business can do so from their public service employment salaries and benefits. As already argued, the new black middle classes are not necessarily in public service to stay. These types of interactions between the state, the new black middle classes, short term aspirations and the new black middle classes wealth accumulation for long term investments are likely to reduce incidences and depths of poverty.
While many participants noted their aspired investments, some of them have achieved some of these aspirations, even as they continue to search for future aspirations. For those who have achieved some measure of their aspirations, most of the participants seem to gravitate around two types of investments, namely, property and insurance schemes. Some examples such as Participant A17 (07/08/2014) possess four properties, additional to the property where his family currently lives. This accumulation of property, according to Participant A17 (07/08/2014) serves two main purposes. On the one hand, participant A16‟s (06/08/2014) properties provide a cushion during economic hardships such as short term unemployment, on the other hand, they are intended at enabling future generation to accumulate wealth more easily than the current. Participant A17 notes the following about these two objectives.
“rather than taking R1000 or R2000 and putting it in the bank, rather take that R2000 and put it into property. And I can live on that. You know, the rent, but later on they can inherit that, should we come to a point where I cannot maintain it myself, or whatever. But basically, this is what I have done, because I‟ve got, besides my own house, I have got 4 properties” (Participant A17, 07/08/2014).
Of further interest is that, Participant A17 (07/08/2014) has played a major role in introducing the property investments in at least one of his children. Talking of his second born, Participant A17, 07/08/2014 indicates that he is “very very much keen. Right now I am looking for a property for him, even if he is not working or has not paid for himself, but err I am looking for him to invest in him there, that when he comes back (from overseas where he is studying) he can take over” (Participant A17, 07/08/2014).
154 The above kinds of investments expose entrepreneurial characteristics among participants such as evident in the following articulation by Participant A17.
“...even while I was working at Transnet, I started in 2003, I bought properties, subdivide, add more rooms and hire it out to young students and bachelors and working people, whatever. And others who are ordinary home owners, I would rent them out to families and everything. So that quite worked out very well for me because it sustained me for three years while I was out of work and pay off those properties and also at the same time sustain myself and also pay for my kids university fees” (Participant A7, 07/08/2014).
Others such as participant A13 (28/07/2014) cite that, although their parents possessed four houses (delivered to them by the apartheid government), they did not bequeath any of these properties to their children. Infact, the likelihood of participant A13‟s (28/07/2014) parents to bequeath property to their children is low, judging by the participant‟s response as follows.
“No!! my parents believe you have to work for yourself. You cannot be reaping the benefits from somebody unless they are late. But now when they are alive, you have to work”
(Participant A13, 28/07/2014). This participant‟s household is deeply religious, suggesting traces of protestant work ethics as argued by Weber (see Weber, 1930). As far as the theme under discussion is concerned, possession of assets by the previous generation does not necessarily translate to inheritance of those assets by the next generation. It does however suggest better economic possibilities for the next generation, assuming that the new black middle classes can provide a „positive start‟ to the next generation.
Some instances such as participant A12‟s (22/07/2014) represent a different dynamic.
Growing in a poor household, participant A12 (22/07/2014) was forced by circumstances to support his siblings, even before he got married. Having received nothing in terms of asset investments from the previous generation, participant A12 (22/07/2014) claims to have initiated savings for the sake of his children, although he admits that “putting your money at the financial institution is like putting your money under your pillow...once I see that it is enough money that I can put my money elsewhere, may be money market and stuff, I will definitely do that” (Participant A12 (22/07/2014).
From the foregoing, participant A12 (22/07/2014) seems aware that making savings in the bank is not necessarily a transgenerational investment, but at least he has initiated what he
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.