Clear proof that July’s looting led straight to job losses
1 October 2021
When political fights open the door to widespread criminality such as the looting spree that ravaged parts of Kwa-Zulu Natal in July this year, it demonstrates a dangerous public mood -- caused by a devastating unemployment rate, itself the result of legislation openly aimed at subjecting all aspects of private enterprise to control by bureaucrats.
Those who believe the state should have a prime role in the economy make two fundamental mistakes. They think that those who create sustainable jobs in the private sector are compelled to stay in business, no matter what the environment. Despite the evidence, they seem to think governments can do a better job.
The truth is the opposite. Too much regulation -- too much State interference in business -- is the kiss of death to job creation. No investor willingly stays in a country that signals its belief that private enterprise is akin to theft. No potential investor – after studying conditions in South Africa – will risk putting money here.
The effect of the July looting was another nail in the economic coffin. Not only were the police unwilling or unable to halt the mayhem, its members often stood and watched as warehouses were emptied and set alight.