Policies stunt growth

ANC president Cyril Ramaphosa has already referred many times to how important higher economic growth will be for the country, but the question is which appropriate policies he has in mind because it is very unclear at this stage.

As long as the governing ANC clings to socialism Ramaphosa can forget about creating economic growth.

There is also no evidence that monetary policy can stimulate economic growth, as most economists believe.

The South African Reserve Bank is not able to protect the exchange rate or promote “balanced and sustainable economic growth” in the country in accordance with its mandate.

Economic growth is driven throughout the world by the profit motive, but apparently most economists just don’t understand this basic principle, which is why they are still clinging to monetary policy, which in reality is in all respects irrelevant.

Profits are driven by productivity. The efficiency of the processes used in all industries in the economy must be continuously improved by new technological developments.

Therefore, if Ramaphosa wants to improve the country’s economic growth he will have to investigate what problems every industry in the different sectors of the economy experience, so they can become more profitable and make a bigger contribution to economic growth.

The biggest hurdle to this happening is the ANC government’s existing political and economic policies, which destroy economic growth and prosperity.

Fanie Brink Bothaville