SA middle class lives on borrowed time
The lead story on our finance pages today makes for depressing – and worrying – reading.
South Africa's middle class – the engine driving any economy – is having the very life squeezed out of it.
DebtBusters, which publishes a quarterly analysis of consumers who applied for debt counselling, says 'in real terms, most South Africans had 53% less disposable income in 2024 than in 2016'.
Middle class is defined as a household income up to R30 000 a month – and people there, and those earning well above that, are being hit from all sides.
In that same eight-year period, the price of fuel has gone up by 88% and electricity by 135%, while overall inflation is up 52%.
ALSO READ: The steady decimation of SA's middle class over the last decade
There are signs of this pressure on the middle class everywhere – from stagnant or declining vehicle sales to the slow-down in performance of those consumer brands which might be considered non-necessities.
Middle class debt levels are spiralling, too.
But, the reality is that lenders will only give money to the more affluent, tightening the spiral of despair.
Our government needs to take this information on board.
This economy must be liberalised so it can grow and provide a real future for us all.
NOW READ: Is the two-pot system a temporary fix or future trap
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