LETTER: Government must stay out of business
Praise for trade and industry minister Rob Davies for his involvement in the motor industry is misplaced
French economist Frédéric Bastiat distinguished between the “seen” and the “unseen”, especially regarding government policies. They may be well-intentioned, but their consequences result in the very opposite of their intention. In the letter extolling the accomplishments of trade and industry minister Rob Davies, “Ulterior motives for lambasting of Davies” (October 22), this crucial aspect of government policies and economics is unfortunately completely missed. Davies is praised for maintaining “a world-class automotive sector”. It is not the proper role of government to maintain any sector of the economy. The automotive sector is quoted as supporting “113,000” jobs. However, the unseen consequences of government support of this sector is skipped over — how many jobs were not created because of government interference? How much cheaper would cars be in SA if there were no trade barriers imposed by the minister on imports? The ramifications of the trade war between the US and China m...
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