Mike Hoxbig
Honorary Master
We can and would have been in a far worse off position. We would get some power stations, maybe in 20-30 years time.I cannot concede the point when we're in a factually far worse position, today.
But if you factor in the macroeconomic damage that adding R1trn (definitely more) to our debt burden would cause in the short to medium term.
People are already struggling financially with the country's existing debt burden, of which interest alone is R420bn annually (let alone the actual repayment amount), which is 20% of all government expenditure. How much more do you think this would be if you add R1trn of debt?
All these debt payments mean you have to take away money from infrastructure development in the rest of the country. So we get some power stations in a few decades, and by then the rest of the country would have collapsed and everyone would be too poor anyway...

