THE country’s economic and business establishment, whose weight of economic opinion has considerable influence over government policy, enjoys remarkable singularity of economic thought. Any public comment, debate or policy suggestion that deviates from the received wisdom is dismissed airily.There is perhaps no better example of its groupthink than in the area of national finances. It exalts budget cuts, deficit reductions and wish for budget surpluses. The common refrain is "government must tighten its belt, like every one of us".What makes this fiscal probity call sound credible are the trumpet calls by the IMF, Organisation for Economic Co-operation and Development (OECD), World Bank and ratings agencies for government to rein in expenditure. But despite religiously following these calls, the nation’s economic malaise continues. No-one stands back to question whether this groupthink is leading us anywhere.With a governing party that assumed power without a clear macroeconomic com...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.