Government is failing the poor and the working class in the fight against coronavirus
21 March 2020
The National Union of Metalworkers of South Africa (NUMSA) is disappointed that to date our government has not proposed enough measures to cushion the working class and the poor against the negative effects of the coronavirus outbreak. Government has declared the virus outbreak a national disaster, and some steps have been taken to reduce infection, but this does not go far enough.
Our government is only for the benefit of the elite, this is demonstrated by its reluctance to act swiftly to protect the working class and the poor against the ravages of this virus. Not enough concrete measures have been announced to cushion the working class and the poor from the financial impact of the virus. For example, a debt relief fund for SMME’s and Micro enterprises has been proposed by the Department of Small Business Development to protect small business owners, amid interruptions in productivity and loss of income, but there has been no mention of debt relief for individuals and families’ especially as most of them will have their income streams interrupted. Italy is currently at the epicenter of the disease and its government has placed a suspension on monthly home loan repayments, and banks are offering workers’ and their families’ debt repayment holidays.
The South African Reserve Bank announced only a 1% reduction in interest rates, but this is not good enough. NUMSA re-iterates the demand for the South African Reserve Bank (SARB) to scrap inflation targeting. The U.S. Federal Reserve has reduced interest rates to 0,25% and they are working on a stimulus package which will include compensating all workers with cash. At the beginning of the month the Federal Reserve reduced interest rates to half a percentage point as an emergency measure to stimulate the economy in the wake of the epidemic. As usual the SARB is out of touch with reality and with the needs of our society and it is doing its utmost best to protect the value of white wealth, instead of responding to the needs of our society. This is why we have always called for it to be nationalized because it does not serve our national interests.