Johannes Wessels (@johannesEOSA1)
South Africa’s economic growth rate has dropped through the floor: the lockdown economy has shrunk in 2020 Q2 by 51% (Q-on-Q annualised). Whilst the third quarter ending 30 September will register substantial growth, it will not bring the country back to where it was prior to lockdown. As cause (lockdown) and consequence (massive unemployment, poverty and the destruction of existing wealth and the means to generate wealth, i.e. businesses) of this economic meltdown mature, the future bill for yesterday’s stupidity will grow exponentially.
And those that will have to foot the bill will be much poorer with SA fast approaching the door to leave the club of upper middle-income countries to join the ranks of the lower middle-income countries.
The government has been blaming Covid 19 (this time apartheid and colonialism cannot carry the can), talking about “unprecedented economic consequences of the pandemic”. Pres. Ramaphosa refers to the economic effects of the global coronavirus pandemic”.
And Dlamini-Zuma remains on record (National Council of Provinces, 23 June) that the government was “absolutely convinced the Covid pandemic – and not the lock-down measures was causing the economic damage”.
That is a lie and StatsSA is correct with their description attributing the decline to “the impact of the Covid 19 lockdown restrictions”.
Continue reading “Thanks to the lockdown you are much poorer and deeper in debt (also the wasteful debts government incurred)”
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