Poverty is unaffordable – there’s a big way out

The Institute for Economic Justice (IEJ) issued a statement challenging the Centre for Development and Enterprise's (CDE) opposition to a basic income grant (BIG) in South Africa. The IEJ argues that poverty and economic exclusion are the primary barriers to growth, asserting that social protection and progressive taxation can stimulate the economy and create jobs, contrary to the CDE's claims that such measures are unaffordable or would hinder growth.

• The Institute for Economic Justice (IEJ) disputes the Centre for Development and Enterprise's (CDE) claim that a basic income grant (BIG) is unaffordable or would harm the debt-to-GDP ratio, arguing that the CDE's position is based on a narrow analysis that prioritizes specific economic interests over the vulnerable.
• The IEJ asserts that social protection, specifically cash transfers, supports employment and economic growth rather than competing with job creation. Evidence suggests these transfers improve work motivation, labour-market participation, and entrepreneurship, particularly in low- and middle-income countries.
• The IEJ rejects the notion that progressive taxation to fund social spending slows economic growth. They cite a study by the International Trade Union Confederation covering eight low- and middle-income countries showing that progressive taxation for social protection led to positive GDP changes and employment increases.
• The IEJ argues that austerity and cuts to social spending have hindered GDP growth and increased poverty, suggesting instead that macroeconomic policy should focus on increasing aggregate demand and domestic supply to improve the debt-to-GDP ratio.

APA

Mncube, N. C. K. H. Z. (2022). Poverty is unaffordable – there’s a big way out. Institute for Economic Justice. https://iej.org.za/press-room/in-the-media/poverty-is-unaffordable-theres-a-big-way-out/

Chicago

Mncube, Neil Coleman, Kelle Howson, Zimbali. Poverty is unaffordable – there’s a big way out. Institute for Economic Justice, 2022. https://iej.org.za/press-room/in-the-media/poverty-is-unaffordable-theres-a-big-way-out/.

Wikipedia

{{cite press release |last1=Mncube |first1=Neil Coleman, Kelle Howson, Zimbali |title=Poverty is unaffordable – there’s a big way out |publisher=Institute for Economic Justice |date=18 June 2022 |url=https://iej.org.za/press-room/in-the-media/poverty-is-unaffordable-theres-a-big-way-out/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{mncube2022poverty, author = {Mncube, Neil Coleman, Kelle Howson, Zimbali}, title = {{Poverty is unaffordable – there’s a big way out}}, publisher = {Institute for Economic Justice}, year = {2022}, month = jun, url = {https://iej.org.za/press-room/in-the-media/poverty-is-unaffordable-theres-a-big-way-out/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }