South Africa Follows Formula for Failure; Will USA?

Whom the gods would destroy, they first make mad. Countries the gods would destroy, they turn over to moonbats. South Africa is an illustrative case in point. Due to moonbattery, the Rainbow Utopia is destined to be an unhappy country:

This is the view of Efficient Group founder and chief economist Dawie Roodt, who was speaking at an event hosted by the Free Market Foundation.

Unhappy countries follow an established path to economic ruin:

1. Destroy the existing capital in the country.

2. Frighten the taxpayers by continuing to increase taxes.

3. Scare savers by targeting their money.

4. The country tries to inflate itself out of debt.

The resulting hyperinflation destroys the economy and thereby the country.

Capital destruction is accomplished by confiscating money and them wasting it.

The reason for this capital destruction is simple – politicians want money to execute their ideologies and for self-enrichment.

When cash inevitably runs low, the politicians raise taxes.

Roodt explained that even when the government increases taxes further, they will not increase tax collection much, as the taxpayers are already overburdened.

Refer to the Laffer Curve for an illustration.

Since taxes can’t pay the bills, they come after savings.

Roodt said this is happening in South Africa with the ANC’s prescribed assets plans, which will give politicians control of pension funds and where this money is invested.

Big Government is like a forest fire. The more fuel it finds, the hotter it burns, the more fuel it demands. Soon not even enslaving people through excessive taxation and looting them by confiscating their savings will suffice. The deficit keeps growing, since there is literally no limit to how much money government can waste on counterproductive projects like the Welfare State. That’s when politicians hyperinflate the currency to pay down the debt.

This, Roodt said, is the reason why the ANC wants to get control over the SA Reserve Bank (SARB), because if you can control the SARB you can get rid of your debt.

This is not conjecture. The cretins who have been put in control of South Africa are sometimes straightforward about their policy. To quote Nhlanhla Nene, former Minister of Finance:

“Our people are poor because there is a shortage of money in the country. It’s not the shortage of jobs that makes people poor, it is the shortage of money. We have paper and ink, so we will print more money and give it to the poor, and make all of them billionaires if that is possible.”

This is liberal economic policy boiled down to its purest essence.

When everyone is a billionaire, no one is a billionaire, because the currency is worthless. But at least there is equity in destitution for everyone who is not part of the socialist government.

There is no part of this formula for failure that Democrats will not follow if given the opportunity, even if they are less straightforward about it than Nene. As went Zimbabwe and Venezuela, so goes South Africa, so will go the USA if they are not kept from power.

On tips from ABC of the ANC.

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