Sean Ashton and Nolan Wapenaar explain there views on the recent MTBPS and what it means for SA.
Margaret Thatcher famously quipped that the problem with socialism is that you eventually run out of somebody else’s money to spend. The MTBPS yesterday was both an acknowledgement that our government has lost control of finances and that we are rapidly running out of other people’s money. The problem in South Africa is arguably not so much about socialism, but more about an excessive government payroll that is mired in inefficiency and corruption. These factors have all combined to crowd out the private sector and dominate the economy. The inevitable slow economic growth was exacerbated by a collapse in confidence by consumers and business on the back of the cabinet reshuffle to remove Pravin Gordhan.