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PodcastHello Brand Media Studio14 Oct 2026

How paying privately for basic services squeezes household budgets

Economist Xhanti Payi discusses the middle class as an economic shock absorber, and how paying privately for transport, schooling or backup power cuts into money left for saving.

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In this podcast episode from 14 October 2026, economist Xhanti Payi talks about whether South Africa's middle class is effectively paying twice just to get by. The episode runs for just under 23 minutes.

Payi describes the middle class as a shock absorber for the economy. Many households pay their taxes and then spend again on private options for things like schooling, medical cover, security, backup power, internet and transport. That extra layer of spending eats into money that could otherwise go towards savings, home improvements or starting a small business.

Transport is a big part of the picture. Stats SA's 2022/23 Income and Expenditure Survey showed transport made up 15.3% of household consumption spending, the third-biggest category. For many workers a car is less a luxury than a dependable way to get to work, and it brings finance, fuel, maintenance and insurance costs.

The discussion also points out that two people on similar salaries can be in very different positions if one supports extended family or is paying off debt. It stops short of saying every private choice means government has failed, and instead asks which public improvements, such as reliable transport and better-maintained infrastructure, would leave households with the most money in their pockets.

Hello Brand Media Studio, 14 Oct 2026

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