Why a R1 Million Annual Payout for Every South African Is Economically Impossible

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Community activist Phakelumthakathi recently claimed the South African government could afford to pay every citizen R1 million each year for life. He argued the nation’s wealth would easily cover this payout. In reality, with a population exceeding 63 million, such a scheme would cost over R60 trillion annually. That figure is nearly seven times larger than South Africa’s total GDP of around R8.8 trillion. Proposals like this risk spreading economic misinformation and fueling social tensions by ignoring basic fiscal realities.

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