The ANC breaking a crucial pillar of a successful economy in South Africa
Renowned economist Dawie Roodt said that the Expropriation Act is an attack on private property rights in South Africa.
This means that the Expropriation Act, championed by the ANC, is an attack on one of the core pillars of economic success, property rights.
There is currently a legal battle around the Expropriation Act playing out in the Western Cape High Court in Cape Town.
In one corner, fighting the Act, are the Democratic Alliance (DA), AfriForum, and the Institute of Race Relations (IRR / IRR Legal).
In the other, defending it, are President Cyril Ramaphosa, the Minister of Public Works and Infrastructure, Dean Macpherson.
They are supported by the Speaker of the National Assembly and the Chairperson of the National Council of Provinces (NCOP).
After cutting through the legal noise, it boils down to whether the state should be allowed to take private property without paying fair compensation.
Roodt explained that this is a terrible idea, as it attacks private property rights, a core ingredient of a healthy economy.
He explained that a successful economy has three pillars: private property rights, free trade, and sound money.
“If you measure those three things against what we have in South Africa currently, there is an attack on private property through the Expropriation Act,” he said.
Roodt warns that South Africa is actively undermining its own economic growth by eroding property rights.
“The new Expropriation Act, with a nil compensation clause, gives South African politicians the right to steal people’s property,” he said.
“The term expropriation is just another term for theft. This is what the state does when it takes people’s property.”
“For that reason, we all have to vote for political parties that stand for the protection of private property rights,” he said.
Many other business leaders, including former Shoprite CEO Whitey Basson, share Roodt’s concerns about the Expropriation Act.
“Expropriation without compensation would be the most foolish thing in the world because it goes against global economic logic. People don’t realise that,” he said.
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Fortunately the ANC will have to stop unbridled theft and monopolistic control as the voters whom they used as voting fodder and do not care a hoot about, realise that although slow, voting eventuality gets rid of the parasites in society. History has shown that top down ruling will eventually fail as the dictators have learnt throughout the history of the world.