"The policies of the ANC government of 'radical economic transformation', 'inclusive economic growth' and 'economic reform', which are nothing more than pure political slogans, have almost finally pushed the economy over the abyss," says Fanie Brink, an independent agricultural economist.
Despite this, the Minister of Finance, Enoch Godongwana, nevertheless says that the "economy needs transformation" while acknowledging that "South Africa's economy in its current form is not sustainable."
Brink referred to the article, “Ekonomie kort tranformasie,”1) which appeared in the “Rapport“ yesterday.
The Minister also acknowledged that "these figures show that the country's industrial base has in fact been destroyed where the job losses, income inequality and poverty come from."
The manufacturing industry declined from a peak of about 22% in the 1980’s to the current 12% of Gross Domestic Product (GDP). The capital base of this industry also shrank in real terms from R677 billion in 2008 to R545 billion. ”
“Despite this, the economy must now be further transformed, reformed and destroyed! Unbelievable!”
The only conclusion to be drawn, therefore, is that the ANC's economically illiterate and incompetent politicians will simply never understand how economic growth is created. There should be no doubt about this and also not about the certainty that the ANC government with its socialist economic policy will finally destroy the economy within the next 2 to 3 years! While the chances of even worse riots and looting are growing by the day, the Minister has now clearly proved that the ANC government has in fact never had an economic growth plan that could solve the serious fiscal and social problems in the country!
The former Prime Minister of Britain, Winston Churchill, did not say in vain: "Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its only inherent virtue is the equal sharing of misery."
The economic destruction will cause South Africa to lose its fiscal sovereignty as well as its status as a developing country and fall into an underdeveloped country with much greater poverty, famine, unemployment and inequality that will even jeopardise the survival of the democracy.
The great historian, Alexander Tytler, said as early as 1787: “A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to a loose fiscal policy, which is always followed by a dictatorship. Invariably, the majority (having become complacent and pathetic), choose those who promise to take from one group and share the spoils amongst those who are less productive. An apathetic population is not one that will suddenly decide to roll up its sleeves and get the country, once again, on a productive footing, but will rather jump on the wagon of empty promises and rides it downhill until it reaches the bottom of the economic.”
The ANC government will never understand that it is not primarily about creating greater jobs through the transformation of the economy, but about a political and economic environment that the government must develop to make it possible for the private sector to create profits and economic growth.
Profits are the only creator of economic growth that can be sustainable which are created by producers, manufacturers, personal service providers and others on the supply side and consumers on the demand side of the economy.
"The ANC government will have to be stopped with its continued economically destructive transformation policy and the prospects for the economy and the country will have to be addressed very urgently because it looks much worse than ever in the past," Brink said.
Fanie Brink, Independent Agricultural Economist
1) “Ekonomie kort tranformasie”
https://www.netwerk24.com/Business/Economie/ekonomie-kort-transformasie-20210925
