Inside Labour: For the poor, policy offers little relief

With the usual flurry of comment and analysis, another mini budget has come and gone. But for the majority of workers, whether employed or unemployed, such policy machinations are of little interest because they are too busy trying to survive in an increasingly harsh environment.

A tightening of fiscal policy, a tweak to the tax rates, an adjustment to elements of state spending or a revision to one or other revenue stream may gain the approval of rating agencies, international lenders and business. And such moves could lessen the prospect of the country’s credit rating being downgraded to “junk”.

However, for the majority of South Africans, junk status already applies: they live it. In fact, where credit is available to the working poor, it is usually at rates that would make the most hardened seller of junk bonds blanch. Even under existing small loan regulations, those who qualify and know how to access such funds face rates that start at 60% a year before admin fees and other legal “add-ons”.