LETTER: Call a spade a spade
In its push for state ownership of all mines, banks, farms, strategic enterprises and private property, the African National Congress (ANC) Youth League says nationalisation is misunderstood.
Well, let's put this into perspective: Every state-owned enterprise and state-run public service is an abysmal failure, requiring regular "bail-outs" or "recapitalisation".
All of this is a direct result of cadre deployment - putting politically connected individuals into positions of authority at entities they neither have the skills nor motivation to manage. Further, their remunerations are grossly inflated, way above the national average, placing additional burdens on these business's successes.
It is accepted that government "deployees" are far better at destroying enterprises than running them - and stealing billions with impunity -- and therefore, should they succeed in their nationalisation plans, the collapse of SA's entire economic structure is inevitable.
With these facts in mind, we can only assume that the reasoning behind "nationalisation" has nothing to do with "equalising opportunities" but rather that the ANC's cadres want to get their grubby paws on enterprises they could never have developed. In essence, they want to steal a free ride to immediate personal wealth at great cost to our economy. Once these businesses have been plundered, all that will be left is a shell, not unlike the Aurora mines.
So, will nationalisation work? The answer is no.
And, if it's done for political and not economic expedience, the reasoning is even more worrying.
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