Links in the economic chain

Economic and management sciences

Grade 6

The economic cycle

Module 1

Links in the chain

From birth to death, every person forms part of a country’s economic cycle. At birth everybody starts as a dependant and becomes dependent again when they grow old, but for the biggest part of our lives we are prepared to be able to make a contribution to the growth and stability of the country’s economy. You will now be taken through the cycle step by step and it is hoped that you will understand very clearly what your specific role in South Africa’s economy is and will be.

At home

This is the phase in which you have been since birth. It is definitely the best and most carefree phase of all, but also the phase that everybody wants to pass the quickest. We cannot wait to earn our first salaries and spend the money!

During this phase you are a LEARNER. From the moment you make your first sound, everybody wants to teach you the whole time. When you are not reacting to deliberate instructions, you are unconsciously following others’ example. As you become older, you develop a strong will of your own and often make mistakes in an effort to prove that your own way of doing things is BETTER than the prescribed and tested way.

During this phase of your life you are mainly a consumer and do not really make a positive contribution to the country’s economy. However, there are some entrepreneurs who manage to generate funds quite successfully at an early age.

The student

This is the phase that usually starts just after your formal school education. This is when you are prepared for the world of work or labour market. You are prepared to start your career. Sometimes you study full time, but often you are trained while you are in the practical situation – when you are already busy with the work that you want to do. You mainly remain a consumer and mostly contribute to the economic cycle only through part-time income.

Many people know from a very young age exactly what career they want to follow one day. Others only discover their true talents after they have been exposed to the practical situation. The training processes for careers also differ drastically. For some careers you have to follow a theoretical course for a number of years, while others are a combination of practical training and theoretical work.

Then there are persons who, with the exceptional talents they have received, decide to start their own businesses in a specific field. Mrs X, for example, is very good at sewing and she makes the most beautiful clothes for children, which she sells at flea markets, while Mr Y learnt from his father how a car engine works, and has become a very successful mechanic.

The labour market

This is the phase to which most young people look forward a lot. Now you can do what you want with the money you earn. Now you do not have to depend on your parents any longer. Your own car, your first flat, carefree times…

The responsibility of a budget that has to balance, however, jerks most people back to reality. It is hard work and your salary does not go nearly as far as you thought it would. Together with this you have the responsibility of a career. If you want to progress in your career, you have to work long hours.