South Africa heading for economic crisis?

by oneafrikan on June 27, 2006

An interesting train of thought over at www.southafricandiaspora.org/, about a possible looming economic crisis.

Personally, my take is that if your growing midlde class spending power in a growing economy is coming from people in the goverment sector, financed by debt, and your education success rates are not growing correspondingly, then you’re in for a rough ride as that just does not seem to be sustainable.

Surely the long view would be more pragmatic?

But then, I’m not an economist (just a lowly zoologist who understands ecological models that mirror supply and demand models everywhere) so I may be totally and utterly wrong. In which case, I’ll eat my mouse-cover ;-)

What do you think?

3 comments

South Africans have a tendancy to live beyond their means. It’s dangerous as this may lead to bankrupcy. our rand is being exploited by other countries which I will not name and it is also contributing to the weakening of it. that is my opinion but i think government should really look into serving the needs of our people rather than themselves because there are far more pressing issues in our country and the number of people being retrenchhed from their jobs is alarming.

by Samkelisiwe Dlalisa on March 18, 2009 at 7:32 am. Reply #

South Africa is already facing a financial crisis.
Food prices are still high and South Africans are sinking deeper and deepre into dept trying to suppliment their income with money they don’t have.
I think the government is not telling South Africans about the seriousness of the economic crisis, they keep saying it wont hit us hard but what about all the people who are loosing their jobs?
What happens to them and their families?

by Tshego Lepule on March 24, 2009 at 11:03 am. Reply #

@Samkelisiwe: agreed ;-) especially the part about hte gov serving the people… isn’t that what govs are for?

@Tshego: I think the whole world is in that boat ;-) i also think it’s up to people to be responsible for their own finances – and simple age old fundamentals like living within your means, are things that the gov should teach and preach, but not be relied upon to do so… people should also think for themselves…. as for people loosing their jobs, i can’t say i have any solutions…

by Gareth Knight on March 25, 2009 at 12:26 am. Reply #

Leave your comment

Required.

Required. Not published.

If you have one.

Protected with IP Blacklist CloudIP Blacklist Cloud