MyPE

Community Business Directory, Event Listings, News and Views from Gqeberha, Nelson Mandela Bay

The Straw That Breaks the Camel’s Back

By

We all know what it is like to live from pay cheque to pay cheque OR, as in many cases, from Credit Card Balance to Credit Card Balance. A house of cards waiting for one to fall…

And, it takes a long time to carefully dig oneself out of that hole which can only be done by:

  1. Cutting expenses
  2. Tackling debt systematically
  3. Finding more money

South Africa, as a fairly new player in the world of grown up money, has always teetered on the edge of the house of cards and the signs of an impending catastrophe are there for those with eyes to see.

Our situation:

  1. Expenses are huge as a result of COVID and the Lockdown
  2. Our Debt is spiraling out of control
  3. SARS is unable to find more money
  4. Growth has been at less than 1% for a number of years now.

Unfortunately the Lockdown has driven more and more people into unemployment and the arms of a social grant of some sort – ramping up the number s of people receiving a social grant to around 18.2 Million recipients in contrast to 14 Million taxpayers.

20 Years ago South Africa had 2.5 Million people receiving social grants from 12 Million taxpayers.

South Africa’s employment and social grants numbers have effectively reversed over the last 20 years – and this is now one of the biggest risks for the country, says Nkosana Mashiya, executive of Risk Management at Capitec.

SARS’s answer to this problem is to become more aggressive in collecting taxes.

AND, not too much is being said about how the country intends to CUT expenses OR earn more money.

Everyone knows the simple process to climb out of debt: Cut Costs, Earn More – it looks like Government has not the courage or ability to manage or stimulate the economy to earn more!

Ward 7 Independent Councillor

The following two tabs change content below.
My Twitter profileMy Facebook profileMy Google+ profileMy LinkedIn profileMy Flickr profileMy Pinterest profile

Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.