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One can not have a nuanced debate in South Africa it seems. On the right you have these tweets.
The ratings agencies & Bloomberg think Tito’s plans are not credible. Partly yes because he won’t have political buy in, but also, you go countercyclical is a crisis. 1/ https://twitter.com/dawiescholtz/status/1278617478139129856
The ratings agencies & Bloomberg think Tito’s plans are not credible. Partly yes because he won’t have political buy in, but also, you go countercyclical is a crisis. 1/ https://twitter.com/dawiescholtz/status/1278617478139129856
And on the left you have cries of neoliberalism and austerity, while in actual fact the South African state is providing social grants and spending (on the wrong stuff, not capex, or helping business survive), way above its means. 2/
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https://twitter.com/hugopien/status/1278552485578313729?s=21 https://twitter.com/hugopien/status/1278552485578313729
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https://twitter.com/hugopien/status/1278552485578313729?s=21 https://twitter.com/hugopien/status/1278552485578313729
How to square this circle?
In any normal country, the left, is actually right, as Krugman explains.
A country is not a household, debt does not necessarily make you poorer. But business & government deleveraging at the same time cause depressions. 3/ https://www.nytimes.com/2015/02/09/opinion/paul-krugman-nobody-understands-debt.html
In any normal country, the left, is actually right, as Krugman explains.
A country is not a household, debt does not necessarily make you poorer. But business & government deleveraging at the same time cause depressions. 3/ https://www.nytimes.com/2015/02/09/opinion/paul-krugman-nobody-understands-debt.html
The way other countries have been going countercyclical, makes South Africa not stand out as a basket case internationally.
There seems to be a newfound appetite in debt markets for government debt, also ours. And for emerging markets joining in with monetary stimulus. 4/
There seems to be a newfound appetite in debt markets for government debt, also ours. And for emerging markets joining in with monetary stimulus. 4/
This report by the Bank for International Settlements points out that South Africa's Reserve Bank bond-buying program has been one of the larger, and the most successful.
It's worth a read. 5/ https://twitter.com/wildebees/status/1269500284688105473
It's worth a read. 5/ https://twitter.com/wildebees/status/1269500284688105473
However, the right has a gut feel that something is amiss.
In South Africa's case, they are ***very*** justified.
If we do provide stimulus, will it actually reach the business, people, and infrastructure that need it? Do we have workers, managers with the right skills? 6/
In South Africa's case, they are ***very*** justified.
If we do provide stimulus, will it actually reach the business, people, and infrastructure that need it? Do we have workers, managers with the right skills? 6/
I doubt we have the answer to these questions.
On the question of debt, the left is right.
But that just takes us to a new set of questions, which the left has not even considered, let alone have an answer for.
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On the question of debt, the left is right.
But that just takes us to a new set of questions, which the left has not even considered, let alone have an answer for.
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