SA sitting on time bomb - FF Plus

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http://www.iol.co.za/business/business-news/sa-sitting-on-time-bomb-ff-plus-1.1280811

South Africa is sitting on a time bomb as households come under increasing financial pressure, the Freedom Front Plus said on Friday.

“The FF Plus is especially concerned that the government is currently putting such high tax pressure on households that a critical tipping point may be reached,” party finance spokesman Conrad Beyers said in a statement.

His warning followed the release on Thursday of the Momentum Household Net Wealth Report, which found that half of South African households fell into the “drifting unwell” category.

Beyers said: “This means that the financial position of these households can easily deteriorate if economic circumstances worsen.”

The report found that 30 percent of households were classified as “drifting well” Ä which meant they were also unstable and could shift up or down a category quite easily.

Beyers said this meant that the financial position of 80 percent of households ranged from moderately to severely unstable, leading to “an economic time bomb”.

“ 1/8T 3/8he government's socialist 'tax and spend' approach holds the single largest threat to households in this 'danger zone',” he said.

“A financially unstable middle class implies an unstable tax basis, and the government should realise how important it is to protect households financially Ä rather than choking them through taxes.”

The financial pressure government was putting on taxpayers included high fuel taxes, double taxation such as toll fees, and unsustainable social programmes such as social grants.

Poor service delivery was another burden.

“Households are forced to incur costs in order to make up for an absence of service delivery for which they pay tax, for example additional costs for household safety due to government not fulfilling that duty,” Beyers said.

The index was compiled for Momentum by Unisa's Bureau of Market Research and Personal Finance Research Unit.

A nationwide survey was conducted among 2,937 South African households in the second half of last year. - Sapa
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Saffers will need their own Robin Hood soon :wtf:
 
No real surprise here, the majority of the educated population know the ANC has failed.
 
You can't trust an economist, even less a politician with something to win.

Nothing to see here.
 
Garson007 said:
You can't trust an economist, even less a politician with something to win.

Nothing to see here.
Click to expand...

so what exactly is your point, that this article is BS?

If so, you're deluded. I've seen enough posts from members of this forum that are really starting to struggle to make ends meet
 
Welcome to earth Conrad Beyers.

Ol' Mean Bastid said:
If so, you're deluded. I've seen enough posts from members of this forum that are really starting to struggle to make ends meet
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I've been around long enough to say been there, done that. But I don't see that Conrad Beyers is offering any solutions (to what is a problem not just in South Africa).
 
Garson007 said:
You can't trust an economist, even less a politician with something to win.

Nothing to see here.
Click to expand...
The report was compiled by MMI, they are an insurance group, it has nothing to do with economists or political parties.

FF Plus are simply relaying the results.

Most people I know are just making ends meet (just) and a few are not making ends meet (eg. constantly increasing home loan to cover other debt).

They are doing this study because disposable income is rapidly decreasing and the middle class is in serious trouble meaning we are entering a period of financial hardship. The first thing people cut on is insurance. It is therefore important to assess how badly the average household (whom are the primary customers for insurance) are doing.

Insurance companies need new business to stay profitable, the finance industry is about to get f#$@ed unless government does something to fix this situation.

Your lack of education in this regard is plainly obvious (or perhaps you close your eyes because facing the truth is too hard).
 
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xrapidx said:
No real surprise here, the majority of the educated minority population know the ANC has failed.
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/fixed

....and the sad part is that the mass uneducated majority will keep the Anal Nincompoop Cult in power for the rest of our days.
 
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Ol' Mean Bastid said:
so what exactly is your point, that this article is BS?

If so, you're deluded. I've seen enough posts from members of this forum that are really starting to struggle to make ends meet
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The last two days alone I had probably 5 discussions with ppl about this. Folks are really battling with the high cost of living in general. You reach a point where you cannot cut the budget anymore....
 
noxibox said:
Welcome to earth Conrad Beyers.


I've been around long enough to say been there, done that. But I don't see that Conrad Beyers is offering any solutions (to what is a problem not just in South Africa).
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Why must Conrad Beyers offer the solution?

We all know that a "white" solution will always be the wrong solution for the cANCer government.

When the anc came into power, they closed everything down that the NP government has created, notably colleges - and now they want to reopen it again.

The solutions were already there, but the anc decided to create problems.

Stupid anc.
 
Ekstasis said:
/fixed

....and the sad part is that the mass uneducated majority will keep the Anal Nincompoop Cult in power for the rest of our days.
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I'm assuming by minority you're refering to whites? If so, you're wrong, any colour with a brain can see the ANC is ****ing SA up.

Anyone who comes to their defence is just trying to catch a ride on the gravy train.
 
If I was not in the fortunate position of having inherited my house, and I was paying a bond, I would have to sell.

As it is, I have been living on savings money for the past 6 months or so, as my salary simply doesn't cover day to day running of the house, rates, and Eskom. My fuel bill (Going to work and back ONLY) is in the region of R 3000/ month, and despite virtually living by candle light at night, and having sold my electric stove, my Eskom bill nearly tripled last month - 650 to 1575.

AND STILL the government wants to hit us more for water as well. We cannot survive like this, and yes, if they wanted to create a society where 1% belongs to the wealthy elite and 99% are struggling, they have done an excellent job.
 
Fazda said:
If I was not in the fortunate position of having inherited my house, and I was paying a bond, I would have to sell.

As it is, I have been living on savings money for the past 6 months or so, as my salary simply doesn't cover day to day running of the house, rates, and Eskom. My fuel bill (Going to work and back ONLY) is in the region of R 3000/ month, and despite virtually living by candle light at night, and having sold my electric stove, my Eskom bill nearly tripled last month - 650 to 1575.

AND STILL the government wants to hit us more for water as well. We cannot survive like this, and yes, if they wanted to create a society where 1% belongs to the wealthy elite and 99% are struggling, they have done an excellent job.
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I earn what is considered a pretty decent income - and I struggle some months - I honestly don't know how others do it. I've even tried reducing my expenses, but still end up spending a small fortune.

At the moment I cycle to work - and our fuel bill is still R2000+, electricity R1000+, food R6000+, household expenses R3000+, then you have all your basic insurances which are a small fotune when added together... it just keeps going on and on. (and at the moment I don't have car payments, maybe adding that soon, dealership vanished again :rolleyes:)
 
xrapidx said:
I earn what is considered a pretty decent income - and I struggle some months - I honestly don't know how others do it. I've even tried reducing my expenses, but still end up spending a small fortune.

At the moment I cycle to work - and our fuel bill is still R2000+, electricity R1000+, food R6000+, household expenses R3000+, then you have all your basic insurances which are a small fotune when added together... it just keeps going on and on. (and at the moment I don't have car payments, maybe adding that soon, dealership vanished again :rolleyes:)
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Our immigration consultant referred to it as "Creeping Poverty"
 
Quick, guys buy vaseline the shifting is going to get worse.
 
The obvious solution would be to cut down on the size of government and let the economy recover, however that isn't an approach the ANC wants to take, given the amount of extra taxes that we will soon have to cough up.
 
I think we are close to total bankrupcy.

Almost all the anc controlled municipalities are under administration or very close.
 
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