Head Topics

AYABONGA CAWE: Aggressive debt reduction is like fixing deck chairs on the Mendi

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 25 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 63%

South Africa Headlines News

Treasury’s evidence on the effect of spending needs to be interrogated when underemployment is an existential threat

Nearly a fifth of the 16.4-million South Africans who were employed in the first quarter had joined the ranks of the unemployed by the end of the first month of lockdown. This reality — more than depressed asset values, foreign debt, equity sell-offs and inflation — is our most pressing concern.

Capacity utilisation is depressed as employers lay off and furlough workers in the middle of an anxious winter, coinciding as it does with the peak of the coronavirus. In the middle of such depressed demand conditions and supply-side constraints, it is suggested that stimulus spending has no multiplier impact, that in some cases the impact is less than the rand invested. But this assertion, underscored by contested and discredited “evidence”, is foundationally unsound.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in ZA

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Consumers take on debt counsellorsWhile the number of complaints and enquiries increased last year by 3,445 compared with the previous year, there was a decrease in the number of disputes opened and closed.
Source: SowetanLIVE - 🏆 13. / 63 Read more »

Author Jesmane Boggenpoel is a builder of bridges between peopleAs deputy chair of the board at BMF Investments, she hopes to be part of creating an inclusive environment in the financial sector in SA.
Source: TheCitizen_News - 🏆 6. / 75 Read more »

Expatriates now allowed to self-isolate on return from abroad, says NGOAfriForum says it welcomes regulations that have been published in the Government Gazette which stipulate that people returning to South Africa from abroad may self-isolate for a fixed period.
Source: TimesLIVE - 🏆 28. / 59 Read more »

Serena Williams' two-year-old daughter Olympia dresses herSerena Williams' two-year-old daughter Olympia dresses her The tennis star has revealed her toddler daughter, Olympia, is a big fashionista and likes to help pick her parents' outfits.
Source: IOL - 🏆 46. / 51 Read more »

Expatriates now allowed to self-isolate on return from abroad, says NGOAfriForum says it welcomes regulations that have been published in the Government Gazette which stipulate that people returning to South Africa from abroad may self-isolate for a fixed period.
Source: SowetanLIVE - 🏆 13. / 63 Read more »