SA needs to launch its own New Deal to stimulate economic recovery
There are many options for finding R1-trillion to finance restructuring rather than imposing austerity measures which will make things worse
The government’s response to the country’s largest depression in a century is totally inadequate. The time has come for the Reserve Bank and the Treasury to develop a R1-trillion stimulus package to stabilise the economy and finance a recovery.
Since the beginning of 2020, the Bank has cut interest rates by 275 basis points. During the emergency budget last month, the Treasury announced a R36bn increase in non-interest expenditure to counter the devastating impact of the lockdown. In other words, the R500bn stimulus package that President Cyril Ramaphosa announced on April 21 does not exist...