STRAIGHT TALK
MARK BARNES: The multiplier effect of stokvel credit will reverberate in the growth of GDP
While the stokvel may help people out when it’s their turn, growth in the funding base is limited
The more I wrestle with how to deal with economic inequality, the less I think it is only about money. It is about common purpose, it is about changing the behaviour of people. It is about trust, not doubt. It’s about enablement, not entitlement. It’s about growth, not transfer. These are the conflicts that should be considered in the solution design. But to get it done, actually implemented and pervasive, the will of the government is needed. People are all born equal as human beings, but they are not all born into equal economic circumstances or even equal opportunity sets. It is therefore essential to intervene, with energy and resolve, to create the economic equilibrium in SA’s society that will be the foundation of prosperity and the assurance of enduring peace. Credit for the so-called credit unworthy can be their ruin. People have material aspirations, virtuous or otherwise, beyond their current economic means. While it does not make sense to fund consumption expenditure with...
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.