21 August 2024
Blaai af vir Afrikaanse weergawe.
The Free Market Foundation (FMF) calls for a comprehensive repeal of various regulatory and legislative provisions which are increasing the costs of everyday goods and services in South Africa.
This follows after Statistics South Africa (StatsSA) released the latest CPI figures for July 2024. Although inflation seems to be cooling, the FMF warns that there remain doubts regarding the longevity of the trend absent substantive policy reforms.
‘Beyond those prices over which the government has fairly direct control, there are also numerous other forms of regulation and restrictions on doing business which constantly drive up the cost of basic goods and services in the economy,’ says Dr Morné Malan, Communications Manager at the Free Market Foundation. ‘Inflation, thankfully, rose slower than expected, but that is no reason to presume the consumer will breathe a sigh of relief next time they go grocery shopping.’
According to the FMF, a significant part of South Africa’s price inflation can be attributed to a variety of administrative and legislative initiatives which depress supply in the economy, whereas grants and subsidies serve to increase demand for products and services.
‘Our economic policy with respect to tariffs and other restrictions on trade, licensing requirements, levies and taxes, and other artificial restraints on economic activity reflect an almost perfect recipe for higher inflation,’ argues Malan. ‘The simplest and most effective means to alleviate the plight of South Africans struggling to make ends meet is to reduce the cost of essential items and services – or in this case to halt the actions which have unduly increased those costs.’
The FMF stated that the much sought after relief from our present above-average interest rates would certainly be a welcome reprieve to indebted South Africans, but that such relief is only likely to come after inflation has sufficiently cooled to justify such a change – a process which has been significantly hamstrung through unreasonable government interference in the economy.
‘If the Government of National Unity (GNU) is serious about boosting the economy, lowering the cost-of-living for ordinary South Africans and restoring confidence to consumers and producers, then they must remove the countless provisions which have continuously impeded these efforts,’ concludes Malan.
Click here for a soundbite by Dr Morné Malan.
Ends.
***
‘Staat-flasie’ te blameer vir langdurige hoë pryse, rentekoerse
21 Augustus 2024
Scroll up for English version.
Die Vryemarkstigting (FMF) eis ‘n omvattende herroeping van verskeie regulatoriese en wetgewende bepalings wat die koste van alledaagse goedere en dienste in Suid-Afrika verhoog.
Dit volg nadat Statistieke Suid-Afrika (StatsSA) die jongste VPI-syfers vir Julie 2024 bekend gemaak het. Alhoewel dit lyk of inflasie afkoel, waarsku die FMF dat daar twyfel bly oor die volhoubaarheid van die tendens sonder substantiewe beleidshervormings.
‘Behalwe daardie pryse waaroor die regering redelik direkte beheer het, is daar ook talle ander vorme van regulering en beperkings op sake doen wat die koste van basiese goedere en dienste in die ekonomie voortdurend opjaag,’ sê dr. Morné Malan, Kommunikasiebestuurder by die Vryemarkstigting. ‘Inflasie het gelukkig stadiger gestyg as wat verwag is, maar dit is geen rede om te veronderstel dat die verbruiker ‘n sug van verligting sal slaak die volgende keer as hulle inkopies doen nie.’
Volgens die FMF kan ‘n beduidende deel van Suid-Afrika se prysinflasie toegeskryf word aan ‘n verskeidenheid administratiewe en wetgewende inisiatiewe wat die aanbod in die ekonomie onderdruk, terwyl toelaes en subsidies die vraag na produkte en dienste verhoog.
‘Ons ekonomiese beleid met betrekking tot tariewe en ander beperkings op handel, lisensievereistes, heffings en belasting, en ander kunsmatige beperkings op ekonomiese aktiwiteit weerspieël ‘n byna perfekte resep vir hoër inflasie,’ voer Malan aan. ‘Die eenvoudigste en doeltreffendste manier om die lot van Suid-Afrikaners wat sukkel om kop bo water te hou te verlig, is om die koste van noodsaaklike items en dienste te verminder – of in hierdie geval om die aksies te stop wat daardie koste onnodig verhoog het.’
Die FMF meen dat die baie gesogte verligting van ons huidige bogemiddelde rentekoerse beslis ‘n welkome verligting vir Suid-Afrikaners met skuld sal wees, maar dat sodanige verligting waarskynlik eers sal kom nadat inflasie genoegsaam afgekoel het om so ‘n verandering te regverdig – ‘n proses wat aansienlik gekniehalter is deur onredelike regeringsinmenging in die ekonomie.
‘As die Regering van Nasionale Eenheid (RNE) ernstig is oor pogings om die ekonomie ’n hupstoot te gee, die lewenskoste vir gewone Suid-Afrikaners te verlaag en vertroue by verbruikers en produsente te herstel, dan moet hulle die tallose bepalings verwyder wat hierdie pogings voortdurend belemmer het,’ sluit Malan af.
Klik hier vir ‘n klankgreep deur dr. Morné Malan.
Einde.
