2 minute read
29 Jul 2021
5:20 am

Basic income grant could boost ailing economy


Perhaps now is the time to take the plunge, bite the bullet (for the taxpayers who will foot the bill) and invest (yes it is an investment – in peace) in trying to close that poverty gap.

Minister of Social Development, Lindiwe Zulu. (Photo by Gallo Images/Alet Pretorius)

It’s almost counter-intuitive: the proposed basic income grant – the dreaded “dole” payments so hated by the comfortable middle class – could actually be the shot in the arm of our ailing economy needs. Sure, the payments will be much higher than the current emergency Covid grants of R350 a month – which have been extended to February next year – and they will cost billions … but those billions will be injected straight back into the economy. This stimulus, say experts, could create demand for goods and service and, in the process, help boost salaries and wages. https://www.citizen.co.za/news/south-africa/government/2458799/govt-finalising-proposals-for-basic-income-grant-says-minister/ While...