BRIAN KANTOR: Even more redistribution without growth is wishful thinking
It cannot solve the country’s huge poverty problem and will only worsen already very high joblessness
There is a recognition in SA that developed economy welfare benefits (basic income grants) are impossible without developed economy social security taxes — of the order of a 10%-15% salary sacrifice imposed on the formally employed.
However, higher taxes discourage growth by discouraging enterprise and encouraging the emigration of scarce skills and capital. Redistribution can also lead to slower growth by reducing the incentive to work, to be economically active. ..