SA’s income gap is a ticking timebomb, which could blow at any minute

The old saying “the rich get richer and the poor get poorer” must have been authored by someone in the latter category – but in early 21st century economics, the words ring true.

As the world goes through an unprecedented explosion in consumerism, the reality is that, despite the triple crises of the 2008 global economic collapse, Covid and the Russian invasion of Ukraine, the uber-rich have seen their fortunes balloon by the day.

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And that phenomenon – aided and abetted by capitalism-friendly governments around the world – has been building bitterness among the under-classes.

We have seen this already in the French street protests of a few years ago and, most recently, in the revival of strike action in the UK as a way to improve worker salaries and conditions.

In this country, we are in an even worse position.

Our unemployment is at record high levels, poverty is spreading… and yet, we still have billionaires.

More than that, there are enough “dollar billionaires” (those with assets of about R15 million or more) to fill a rugby stadium… 40 000 according to the most recent figures.

Apart from unemployment, there is ongoing impoverishment of many ordinary, middle class, South Africans, who may have survived Covid but are being ground down by below cost-of-living pay rises and soaring prices of basic necessities.

READ MORE: Basic income grant almost certain to mean higher personal tax and VAT

The income gap is a timebomb waiting to explode – and we saw portents of that in the looting around the country in July last year.

So, the ANC’s plan to tax the rich to pay for a Basic Income Grant does make some sense.

Yet, who gets to define “rich” in an already high taxed country where the middle class is daily bled dry.

The super-wealthy already protect their loot – so we worry that it is ordinary working people who will feel the tax sting yet again.