Basic income grant ‘will power up economy’, study finds
“A wealth tax to partially finance a BIG programme seems justified, especially since the allocation of assets continues to shape wealth inequality,” the report reads
The government should consider gradually raising the social relief of distress grant until it becomes a basic income grant (BIG) by 2030 as this would boost growth and reduce unemployment and poverty, a new study shows.
The research report – conducted by the Institute for Economic Justice (IEJ) and Applied Development Research Solutions – shows the average GDP growth rate could increase by 0.4 to 0.7 percentage points should the R350 social relief of distress grant be increased to R945-R1,417 per person. These amounts correspond with the lower-bound poverty line and upper-bound poverty line, as measured by Stats SA...
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