A report by Oxfam found that SA’s Gini coefficient has climbed in the past 20 years, and that SA’s income inequality is therefore growing.
“Inequality damages economies, is divisive and can lead to social unrest,” Oxfam International said on Monday, reports Business Day.
No where does Oxfam mention that money printing creates income inequality, and that as a result, it is the money printing that must be stopped.
The South African Reserve Bank, with the aid of the commercial banks, have printed R1.5 trillion in new money supply in the past 20 years, increasing the money supply by 500%. That’s 1,500,000,000,000 Rands. They put other counterfeiters of money operating out of garages to absolute shame.
Had income inequality not increased following this type of money printing, now then I’d be surprised.
UPDATE: The SARB and commercial banks have increased the money supply by 44,000% since 1965.