THE FEASIBILITY OF THE BASIC INCOME GRANT TO CUSHION THE EFFECT OF UNEMPLOYMENT AMONG LOCAL COMMUNITY MEMBERS IN THE CITY OF TSHWANE METRO

The COVID-19 pandemic further compounded the issue of unemployment, a consequence of depressed economic activity resulting from the implementation of lockdown measures by the South African government. Consequently, the country has been unable to achieve economic recovery through job creation. The p...

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Main Authors: Kaizer Raseane Makole, Bhekabantu Alson Ntshangase, Steven Kayambazinthu Msosa
Format: Article
Language:English
Published: Izdevnieciba “Baltija Publishing” 2025-04-01
Series:Baltic Journal of Economic Studies
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Online Access:http://baltijapublishing.lv/index.php/issue/article/view/2797
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Summary:The COVID-19 pandemic further compounded the issue of unemployment, a consequence of depressed economic activity resulting from the implementation of lockdown measures by the South African government. Consequently, the country has been unable to achieve economic recovery through job creation. The present study adopted the Keynesian Theory to demonstrate how a redistributive model of creating economic stimuli can lead to an economic growth trajectory. This is achieved by encouraging people to earn an income that can facilitate their active participation in economic activities. This is in contrast to the neo-liberal macro-economic pathway of cutting expenditure but relying on the trickle-down effect of employers creating jobs, a strategy which has proven to be unsuccessful. The present study examined the feasibility of the Basic Income Grant (BIG) as an effective intervention tool against unemployment in Region 1 of Tshwane Metro in the Republic of South Africa. A qualitative and exploratory research design was adopted, incorporating a case study and focus group interviews with unemployed youth, adults, and graduates as data collection techniques. The findings of this study demonstrate that a Basic Income Grant can provide financial assistance to cushion against unemployment. Moreover, the study established that an absence of skills acquisition impeded the participants' capacity for self-sufficiency. It is incumbent upon the South African government to facilitate the development of its citizens' mindset by providing a foundation of knowledge in entrepreneurship and cultivating a culture of saving and investment. This could encourage those who benefit from the Basic Income Grant to utilise the disbursement mechanism to establish small businesses and subsequently employ other members of the community.
ISSN:2256-0742
2256-0963