Answer to Question #197416 in Microeconomics for Sinovuyo

Question

Why is the public sector wage bill a problem in SA

Answer 1

South Africa's public sector wage bill is a problem because most of the government funds are spent on paying salaries of it is civil servants including national and provisional officials, teachers, health workers, and security forces. Therefore the government inflation wages deal with powerful unions who are associated with the African National Congress ( ANC) and can shut down parts of the economy if they do not get their salaries.