Thousands of people line up at the labour department to apply for UIF during the Covid pandemic. Photo: Delwyn Verasamy South Africa is in an economic policy cul-de-sac. The government is committed to austerity policies and will not spend more money because it believes public debt is too high. But the idea that South Africa’s 70% debt to gross domestic product ratio is too high is propaganda and fiction.
Even if it was too high, a national budget does not operate like a household budget. Austerity is a self-defeating policy because it reduces GDP growth, the bottom part of the […]
Full Post at mg.co.za