GUMANI TSHIMOMOLA: The Reserve Bank is waging war on the working class
Austerity has always been used to discipline the working class and resolve class antagonism
In March Reserve Bank governor Lesetja Kganyago shocked many, including conservative economists, when he announced that the monetary policy committee (MPC) had decided to increase the repurchase rate by 50 basis points to 7.75%, effective March 31. The March increase marked the ninth repo rate hike since November 2021.
The consequences of these increases include a depressed economic environment and high levels of unemployment as attempts are made to control inflation. This is a dangerous and misguided idea, yet one that aligns with capitalist logic. In this article I delve into the reasoning behind these decisions and their implications for the capitalist order in SA, examining the nation’s response to the uncertain future of capital accumulation that hung in the balance after the Marikana massacre of August 2012. ..
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