LETTER: Shrinking GDP per capita is an own goal

Yacoob Abba Omar repeats the fallacy that the size of the economy is a given, and that the debate should centre on how the economic pie is distributed (“Melange of manifestos, but no easy walk to economic freedom,” March 27).

The example was used of (racially) different athletes competing for the spoils. In contrast, it is beyond doubt that the economy responds to incentives, shrinking or growing. For example, it should be no surprise that public servants appointed based on party affiliation or race and not on the ability to do the job to the best degree possible, are often not interested in doing what they were appointed to do, leaving everybody worse off.

First China, and now India, are showing the world that millions can be lifted from poverty by setting the market free and reducing government control. Our shrinking GDP per capita is completely of our own making, founded on policies that assume the size of the economy is a given.

Phillip de Jager
Department of finance and tax, UCT

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