IS IT FAIR TO CALL IT BLACK TAX IF YOU HAVE TO SUPPORT YOUR PARENTS AND SIBLINGS

Prof. Monde Makiwane - Chief Research Specialist in the Human and Social Development (HSD) research programme of the Human Sciences Guest: Loane Sharp - Economist @ the Free Market FoundationThe discussion deals mainly with two models of economic flows between generations. The first model is the unidirectional wealth flow. The younger generation benefit from older generation while they are children. When the younger generation reaches adulthood, there is generally a lull in economic exchanges between generations. Most exchanges are between generations during this time are symbolic in nature. This period is usually followed much later by a windfall to a younger generation in the form of inheritances. This model is common among a smaller section of South African population that has enjoyed economic prosperity for at least two generations, and is made possible by the fact that older generation, in addition to supporting children, are able to save enough money to sustain themselves when they reach pensionable age, and the fact that majority of children acquire enough skills during childhood that enable them to enter the labour market and be economically independent.