Economic consequences of political decisions
WE LIVE IN UNCERTAIN political times. However, the long-term economic consequences of incorrect political decisions are much more worrying. I’ve just read Alan Greenspan’s The Age of Turbulence. In my opinion it’s the best economic guide that discusses several economic issues objectively. It deals especially with the world economy over the past century and the consequences of different countries’ economic decisions on economic growth and stability.
I think Finweek and its readers should club together and give a copy of Greenspan’s book to every member of the ANC’s executive as well as to every MP.
Even if the whole book isn’t read, I recommend that Chapter 12 (dealing with the basic principles for ensuring economic growth, such as property rights, free competition and the rule of law) as well as Chapter 17 (which deals with decisions by populist governments and the long-term consequences, such as in several South American countries and in Zimbabwe) should be read.
If SA’s new government makes the correct economic decisions many of this country’s problems – unemployment, crime and poverty – will ease by themselves.