Lelona Mxesibe
3 minute read
5 Mar 2020
6:33 am

Think piece: The poor will bear the brunt of austerity

Lelona Mxesibe

It has been proven that instead of improving the state of the economy, austerity makes it worse: the less money the government spends, the less there is in the economy.

Residents of Munsieville erecting a ‘makoek’ after deciding they’d waited too long for RDP houses. Picture: Bianca Pindral.

Every year, we are bombarded with a plethora of analyses and expert opinions on what we can expect from the finance minister and the dire state of our economy. The truth is, a lot of the language and jargon thrown around is alienating. These conversations are about you and your money, yet very little is brought to your understanding – so whose budget is it? One of the phrases you may have come across is “the fiscal challenge”. The word fiscal just means money. The word revenue refers to the money coming into the economy and expenditure is the money...