LETTER: How would Covid grant be financed?
It would be inevitable that the money for such a charitable project would come from borrowing
Steven Friedman argues that a lot of poor people would benefit if the Covid-19 grant was extended (“Plenty of good reasons to keep the Covid-19 grant (../columnists/2020-10-13-steven-friedman-plenty-of-good-reasons-to-keep-the-covid-19-grant/)”, October 13). This is surely true. We can all agree on that.
However, the time is surely past when one can make proposals for large new expenditures without saying where the money is to come from. Given our already enormous budget deficit it would in fact be inevitable that the money for such a charitable project would come from borrowing. Stop and think about that. We would then borrow both at home and from foreigners, paying them 7%-9.5% interest simply to give that money away to finance consumption...
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.