Income Disparities and Economic Impact
South Africa ’ s economic landscape is marked by stark income disparities . We are told to be in the top 1 % of earners , one needs a monthly income of R151,000 . One struggles to believe that at an income of R25,000 per month , places one in the top 12 % of earners . The upper poverty line is set at R1,558 per month , and the lower poverty line at R1,058 . With 32.9 % unemployment , around 50 % of South Africans are economically inactive , exacerbating poverty and financial distress .
Inflation ’ s Impact
Over the past eight years , average net income has decreased by 1 % due to inflation that surged by 48 %. This means disposable income has shrunk by nearly half , severely impacting purchasing power . For instance , R25,000 in 2016 is equivalent to R36,750 today , just to maintain the same standard of living . This inflationary pressure further strains financial stability .
92 REI MAGAZINE SEPTEMBER 2024