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Buddy lets work out the practical cost of a job Guarantee. There are 11,12 million unemployed. There are 2,5 million informal jobs most far below minimum wage. There are about 400 thousand in subsistence agriculture and they would also paid work. 1/8 https://twitter.com/BuddyWells1/status/1352837591280791558
Moreover, there are 13,3 million people who are either students, homemakers or just not working many of whom would love this income. (e.g. Homemaker can now earn the minimum wage but add sweeping street in front of the home for the wage) 2/8
There are about 100K of people with a job in the family business regarded as employed but who do not get paid. There are 1,6 mil you work less than 29 hours a week who would take those jobs too I would guess. As we have 40 mil adults and only 14,7 working you get the picture. 3/8
So those wanting work at the new minimum wage (expected by April) of around R3750 would be most of those not working - about 25 million and 2,5 million informal 1,2 mil domestic workers, 404K subsistence agriculture workers. 100K family worker 80k beggars, and a few 4/8
Then the part-time workers at 1,6 million Could add a few poachers, illegal miners etc. But anyway well above 30 million people. Let us say 90% of them apply and some apply only for the hour difference not worked SA would need to find about R1,1 Trillion a year 5/8
That either means we have to basically double our current PIT, VAT, and CIT. You say print the money and pay them but if they do not add value that can be priced in the market that would mean SA would lift its Tax burden from 27% to 47%. 6/8
That would increase the cost of doing business in SA and companies in the export game would struggle. About 30% are involved with that so say 30% of them close and add some say 1,4 million to the people we need money for. Add the 2,2 mil people working for government & SOEs 7/8
We would have 30 mil people paid for by the state out of 40 million. Unsustainable by any measure. Nevermind supervision, what job etc. Zimbabwe tried this by paying "war veterans" - could not afford bread with a wheelbarrow of money. 8/8
