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Currently R1 in every R5 of tax goes to servicing debt. SA does not have control of the bond yield, which is determined by both international and local factors. One of the local factors is the local economy, which has been going backwards in dollar terms for some years now.
There is a very real possibility that if we do not put pragmatic, growth-inducing policies in place quickly, this R1 will quickly go to R2, then R3 and so on.
If the ANC still has control over economic decision-making after the election I predict that SA will have to start printing money to pay government and municipal employees, and/or borrow more than we can sustainably pay back.
Transformational or developmental economics (read race-related and cadre deployment) has put us on a road to hell.
Ian Ferguson Via BusinessLIVE
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: On a road to hell
Reza Ismail’s article refers (“Despite doomsday warning there is no chance SA will ‘run out of money’,” November 6).
Currently R1 in every R5 of tax goes to servicing debt. SA does not have control of the bond yield, which is determined by both international and local factors. One of the local factors is the local economy, which has been going backwards in dollar terms for some years now.
There is a very real possibility that if we do not put pragmatic, growth-inducing policies in place quickly, this R1 will quickly go to R2, then R3 and so on.
If the ANC still has control over economic decision-making after the election I predict that SA will have to start printing money to pay government and municipal employees, and/or borrow more than we can sustainably pay back.
Transformational or developmental economics (read race-related and cadre deployment) has put us on a road to hell.
Ian Ferguson
Via BusinessLIVE
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
REZA ISMAIL: Despite doomsday warning there is no chance SA will ‘run out of money’
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Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.