Finally, the “R” – redistribution – benefited corporations most because a succession of finance ministers lowered primary company taxes dramatically, from 48 percent in 1994 to 30 percent in 1999, and maintained the deficit below 3 percent of GDP by restricting social spending, notwithstanding the avalanche of unemployment. As a result, according to even the government’s own statistics, average black African household income fell 19 percent from 1995–2000 (to $3,714 per year), while white household income rose 15 percent (to $22,600 per year). Not just relative but absolute poverty intensified, as the portion of households earning less than $90 of real income increased from 20 percent of the population in 1995 to 28 percent in 2000. Across the racial divide, the poorest half of all South Africans earned just 9.7 percent of national income in 2000, down from 11.4 percent in 1995. The richest 20 percent earned 65 percent of all income. The income of the top 1 percent went from under 10 percent of the total in 1990 to 15 percent in 2002, (That figure peaked at 18 percent in 2007, the same level as in 1949.) The most common measure, the Gini coefficient, soared from below 0.6 in 1994 to 0.72 by 2006 (0.8 if welfare income is excluded).
Friday, December 06, 2013
The Mandela Years
Before I write my critique, read this one: