He added that many people are only now starting to confront uncomfortable realities about declining wealth and shrinking opportunities.<\/p>\n\n\n\n
Heystek said the core problem is South Africa\u2019s long-term economic stagnation, particularly the steady decline in GDP per capita. <\/p>\n\n\n\n
\u201cFor the last 15 years, South Africa\u2019s GDP per capita has been declining,\u201d he said. <\/p>\n\n\n\n
\u201cPeople don\u2019t think it\u2019s an issue, but it\u2019s a massive number over time. If per capita income shrinks year after year, someone in that group is getting poorer all the time.\u201d<\/p>\n\n\n\n
According to Heystek, the middle class has borne the brunt of this trend. He noted that since 2010 or 2011, the middle class in South Africa has steadily become poorer. <\/p>\n\n\n\n
\u201cThat\u2019s not an opinion\u2014those are facts, and there\u2019s no disputing the facts,\u201d he said. He pointed to the cumulative impact of taxes and rising costs on salaried earners. <\/p>\n\n\n\n
\u201cAfter income tax, dividend tax, VAT, capital gains tax, and then estate duty on death, there\u2019s not much personal wealth being created by the middle class,\u201d Heystek said. <\/p>\n\n\n\n
\u201cIf you earn R40,000 or R50,000 a month, or even more, after living expenses and taxes, there\u2019s very little left.\u201d At the same time, traditional wealth-building assets have disappointed. <\/p>\n\n\n\n
For many years, the JSE didn\u2019t give great returns, property prices outside of Cape Town have been a disaster, and the rand has declined. <\/p>\n\n\n\n
\u201cIf you price your assets in dollars today and then travel to London or the US, your purchasing power has been decimated,\u201d he said. <\/p>\n\n\n\n
Heystek said the squeeze is visible everywhere. Middle-class people are struggling to afford medical aid, so they downgrade. They drive cars for longer. <\/p>\n\n\n\n
He added that motor vehicle sales have dropped from nearly a million a year to about 400,000 because they drive cars for longer. That\u2019s a reflection of the tremendous squeeze on middle-class wealth.<\/p>\n\n\n\n
Despite a recent improvement in sentiment, Heystek warned against confusing market calm with economic recovery. <\/p>\n\n\n\n
\u201cThere is a higher degree of optimism, and the government of national unity has calmed the markets,\u201d he said. <\/p>\n\n\n\n
\u201cBut the economy itself is still flatlining. Manufacturing is shrinking, and the trade surplus improved because imports collapsed, not because things got better.\u201d<\/p>\n\n\n\n
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