A growing number of studies have suggested that high inequality can have unfavourable political and economic consequences. Picture: Waldo Swiegers
THE latest income and expenditure data showing that white-headed households earned nearly five times more than black African-headed households is a reminder that South Africa is sitting on a ticking time bomb that will one day explode, says Cosatu.
They were reacting to the latest Stats SA’s Income & Expenditure Survey (IES) 2022/2023, showing that the average annual consumption expenditure for South African households was R143 691 in 2023. However, the median household expenditure for the country was R82 861 per annum.
The top four main components of household consumption expenditure were: housing, water, electricity, gas and other fuels; food and non-alcoholic beverages; transport; and insurance and financial services.
“The average household income of white-headed households was almost five times higher than that of black African-headed households and almost three times higher than the average household income of coloured-headed households.
“Close to half (45.3%) of black African-headed households fell within the lowest two expenditure quintiles combined. In other words, each household was spending approximately less than R25 063 per annum. At the upper end of the scale, as few as 13.0% of black African-headed households were found in the upper quintile.”
Stats SA further found that male-headed households accounted for over 60% of all household consumption expenditure in the country and spent on average about R159 315 in 2023. While households headed by those with tertiary education received the highest average income of R577 415 which was almost seven times more than the income earned by those with no schooling (R84 185) who received the lowest average household income.
Cosatu Parliamentary Coordinator Matthew Parks said the findings pointed to persistent inequality more than 30 years into the country’s democracy.
“The indicators on household income and expenditure are a critical reminder of how unequal South African society remains 31 years into democracy. It highlights a painful picture of huge income disparities along racial and gender lines. If we want to emerge out of (the) unenviable status as the world’s most unequal society, then we need to drastically change our approach to growing the economy, creating decent jobs and ensuring workers are paid a living wage. If we don’t make progress, we should remember that we are sitting on a ticking time bomb that will one day explode.
“Rebuilding public and municipal services and SOEs, mass public employment programmes, support for the social wage e.g. investments in public transport, healthcare, education and transport as well as social security were among the areas Cosatu said needed attention to address the inequality crisis.
“This needs to be accompanied by a commitment by businesses to end retrenchments and work with labour to find alternatives in such situations.”
General Industries Workers Union of South Africa (Giwusa) president Mametlwe Sebei said that “stubbornly persistent and widening inequalities are the most damning indictment of the neoliberal policies and their brutal anti-working class austerity measures”.
“The ANC government and now the GNU has been a multifaceted class war on the poor and marginalised sections of the working class, in every site of accumulation, production and social reproduction.”
Cape Times