What is also clear is that economic and social reform must be carried out in ways that weaken and divide all political opposition - particularly that of the working class majority. Reform and repression are not differing State strategies - they are part of the same strategy. Capitalism in Crisis History has shown that capitalist states are only capable of large reforms if the capitalist economy is growing rapidly. In South Africa it has little chance of growing rapidly. This fact is of central importance to the policies of the working class.
Capitalism faces a crisis of accumulation.
Large profits are being made, but they are not being invested in new factories which would create more jobs. Profits are not being reinvested in production in South Africa. They are being invested in shares in banks and overseas. Capitalist production can meet the needs of the wealthy, but it will not grow to meet the needs of the working class, the majority of whom earn less than a living wage. Nor can South African capitalist production grow by selling its products to other countries.