Citizens choking on tight economic reins

27 August 2015 - 02:09 By Adrian de Villiers, by e-mail

The economy is nose-diving largely due to income tax, fuel levies and interest rates being increased. The economy is being drained of its life blood. We need to introduce a stimulus package to jump-start the economy, implement reliable train transport in each city (to free up the roads and get rid of taxis) and invest in alternative energy sources like solar farms.The spin-offs will be immediate job creation and a decrease in living costs for the working class.This would allow employees to enjoy some spare income - which they could spend on products from businesses rather than simply paying bills.This would lead to long- term sustainable growth.The global economy is in an extreme state of flux at the moment and increasing interest rates will do very little.The dollar is overvalued and the Chinese know it and will manipulate their currency until it comes down, and currencies like the rand will yo-yo for a while.The problem is not so much the rand losing ground but taxes that are killing citizens' purchasing power.Good options would be to decrease interest rates by 1% and rapidly reduce the fuel levies.Lowering fuel costs would lower transport costs and thereby the costs of goods that are trucked to shops. ..

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