In 2016, a fissure opened up in the seemingly impenetrable rockface of stultifying Technocratic Socialism. That is unequivocal progress, but it’s also only the beginning of what is going to be a long, uneven, and probably messy global realignment.
Government “austerity” is a myth. They’re more bloated, indebted and suffocating of private sector dynamism than they were before 2008.
If the South African government does not tighten its belt, sooner or later it will be forced to do so – or embark on a course of reckless borrowing and/or printing money to fund itself. The consequences of the latter choice, as Zimbabwe showed, can be dire.
Calls for a scrapping of the debt ceiling are being heard afresh, but the debt ceiling is a crucial reminder of the reckless spending of the ruling class.