Ann Bernstein writes that "If debt levels are to stabilise, the government will have to find the money to repay its debt, which it can only do by increasing taxes or cutting expenditure." ("Fiscal policy at a turning point, but trends will determine its longevity," December 10).
I wonder if the ANC cadres have grasped that South Africa is busy falling off the Laffer curve? Too high a taxation rate and business stops, because the risk-reward axis is out of kilter. The reward is not worth the risk. Hence all the endless company closures in South Africa.
So that leaves cutting costs, which means an end to cadre theft of taxpayer money and other lucrative criminal conduct, like the beloved tender. It means reducing the dead hand of the ANC on taxpayers and their money. Downsizing all government employees, cutting the cabinet substantially, reducing government salaries and perks, putting effective people into the economic portfolios even if they are white, cutting out destructive legislation like expropriation without compensation and BEE generally. In other words, acting like a normal government able to stick to a sparse budget. My sense is that it won't happen. We have children in charge.