Is South Africa getting richer or poorer?

Question

Another user mentioned that the cost of living has gone up considerably. I've noticed that as well. Just last week I went out for a dinner at "The Dros" and the bill came back R500. My co-worker sugests that the country is getting richer. Is this true or not? I've never been good at math or economics, so please enlighten me!

Answer 1

South Africa's image is synonymous with poverty so the only persons getting richer are the ANC elite and their cronies. The claims are that the economy is booming but if there is any truth in that then it is on the back of credit and consumer spending as well as foreign investment in the JSE.The only real growth Industry is Security - wonder why? The building industry should grow on the back of the World Cup Stadia but there is a shortage of materials and professionals. Also at this late stage they have not got any further than site clearing which again brings up the question of can they deliver. A friend in the Tourist Industry tells me numbers are stable but the quality of visitor is down and they are not spending as much as in the past.I think a number of South Africans on this site are deluded because of the exchange rate and believe SA to be a cheap destination. But the opposite is true when you look at the complete picture i.e. the cost of getting there,Hotel prices in season, Car hire and travel costs,tour costs,additional insurance costs etc etc. It is not correct to compare the cost of a coke with the US or Europe and make the statement that SA is cheaper. As far as food is concerned then that will rise dramatically if they continue murdering Farmers at the rate they are and move from Commercial farming to subsistence Farming like their neighbours.

Answer 2

PORGIE, I thought you have left already. OR are you back now forever.

Well I am no economist either, so will not be able to give a sound economic answer. What is true is that our GDPhas increased. The average person in South Africa has more in his pocket. There has been ajn extent of the spreading fo the wealth. By all economic measures our wealth has increased and we are in a financially better position than we have ever been since 1960.

Personally, everytime I go out it feels if I am poorer.

Answer 3

When you look what the AVERAGE South African can buy with his income (it's called purchase parity), South Africa is about the 50th richest country in the world. SA is classified as a middle income country with the third highest income per capita (it's increasing each year) in Africa, South America and the Middle East. BUT if you look at the inequality that exists in SA... It's actually quite hard to stomach... I think many foreigners will be surprised how rich parts of SA are though.

Answer 4

The only people getting richer are the politicians. The average middle class people are spending more on ammenities and luxuries as well as getting taxed way to much.
Small businesses get taxed too much also.
Unfortunantly salaries are not being raised according to the annual interest rates and as such are coming out with less money at the end of every month.
I do not believe the economy benefits from this,as if people do not have money to spend how can an economy grow?

Answer 5

the whites built all the structurs that have allowed the blacks to become rich mines, infrastructure, economy ect So according to you blacks in South Africa are responsible for the invention of the entire infrastructure of south africa you go on about economic growth in african countries but growth is easy if you come from a base of 0. And do you really believe that wealth is being spread equitably among the black people of africa no its going for the most part to well connected individuals (black individuals). you are obviously a child(i hope) with little knowledge of world affairs and socio economics. now go study reality by using google on a PC using the internet ...........ill leave you to figure out why i say that if it takes you longer than 5 seconds you have proven me right. PS you are a racist

Answer 6

The economy is slowly strengthening again. The rand against the dollar is high but not as high as what it was a few years ago (2001 – when it hit almost R14-00 to the dollar). After 1994 the rand-dollar exchange rate rose sharply to that point. Analysis points to the rand strengthening against the dollar again with a steady drop from its high to the +/- R7 mark. This drop looks set to continue especially with the dollar losing ground to the Euro and with major market growth in Europe and Asia. The latest Time magazine highlighted the US economy losing strength against these emerging markets.

South Africa’s “middle class” is also growing at an astounding rate. The Sunday Time of 28 January 2007 reported on the strengthening middle class as more South Africans are starting to earn more. However, there is still an alarming poverty and unemployment rate which needs to be dealt with and supplyers are not passing any discounts on to the consumer.

Better education, with greater store placed on financial education needs to be implemented as well as a greater drive to creating more entrepreneurs. BEE and AA need to be shown the door as very few actually benefit from it. These systems also re-racialise South Africa like the former goverment did.

Regarding the Apartheid South Africa’s rand strength:

Apartheid South Africa’s rand strength against the dollar was to a large degree as a result of the US’s then support of the South African government. That strength was soon to fail.

“Apartheid educational policies generated skill shortages. A mercantilistic development strategy distorted trade patterns, exacerbated dependence on foreign capital inflows, and created chronic balance of payments difficulties. The administrative and defense costs of implementing apartheid were onerous and rising. These internal weaknesses enhanced South Africa's vulnerability to capital flight, changes in world prices and business cycle conditions, and political changes abroad. Ultimately, apartheid was abandoned because its costs came to exceed its benefits to white South Africans. The internal dynamics of the system dictated the retrenchment of apartheid, which in all probability would have occurred even without foreign sanctions.”

Answer 7

South Africa is gettingg poorer in easy terms because its gettin harder and harder to keep food in the belly's of the children there not too mention 9/10 parents are killed from HIV they sometimes transfer the HIV to there children so they are outcast from there homes and are forced to live on the street so South Africa is indeed getting poorer with every Innocent child being sacrificed

Answer 8

The Rich are getting Richer and the Poor are getting Poorer.....

Answer 9

for the average man in the street on any colour its getting worse to keep your belly full. I do shopping at the the end of every month and you can be guaranteed to need a couple of hundred rand more each month for less in your trolley.

Answer 10

This question is redundant.
South Africa is a poor African country, like every other country on the continent.
The rand trades at plus minus seven rand to the dollar. During the last days of apartheid it was half that.
As the country sinks further and further into the cesspool of black majority rule, it's only going to get worse.
Also, take into account the coming famine, as more and more farms are seized and given to uneducated blacks, who will render that land to dust.