OPINION : I warned 25 years ago we are heading for collapse
SOWETANLIVE / 29 JULY 2019 - 08.00 / READER LETTER
I distributed pamphlets 25 years ago in Cape Town under the name of the Islamic Party predicting that ANC socialism and communism will destroy the economy. The chickens of these policies have been streaming in over the past 10 years and this process will accelerate with the effluxion of time.
In general terms, the economy is contracting, the public sector is dysfunctional, public debt is spiralling out of control, many companies have gone bankrupt, unemployment will increase and the economy will soon be downgraded to junk status.
Image: Halden Krog © The Times
A specific example of communism is the Mining Charter as a means of transforming the mining sector which requires companies to have a minimum 26% black shareholding. There are many contradictions in this system.
The first problem is selection. Are black people just taken off the street? Or is there a lottery? The most likely answer is that friends and family of the ANC are chosen and this makes it corrupt and unethical. The second problem is benefit. Why should a few blacks benefit instead of the majority?
Instead of a 26% black shareholding requirement, convert this into a tax so the revenue can be spent on social spending so all black people will benefit instead of only a few. But one can't just increase the tax rate by 26% as this may make the mines unprofitable for investors. The current system is unsustainable and heading for collapse.
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER