Rob Hersov calls for a capitalist reawakening: “Capitalism works, Socialism doesn’t”
In a conversation on this morning's BizNews Briefing, outspoken entrepreneur and "capitalist activist" Rob Hersov doubled down on his call for South Africans to embrace capitalism as a path to growth, jobs, and innovation. Sharing his thoughts on how socialism and its ideals have gained surprising traction, Hersov expressed concern over the influence of leftist ideology on young minds, educational institutions, and policymakers in South Africa. Hersov's call to action? For advocates of capitalism to step up, support the system that, in his view, has historically proven successful and fuelled prosperity.
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Springbok Deal and South African Competitiveness
Kicking off the conversation with BizNews's Alec Hogg, Hersov addressed his critique of a private equity deal with the South African Rugby Union (SARU) that has sparked debate in the business community. According to Hersov, the proposed transaction lacks competitive terms for SARU, a "national asset" represented by the beloved Springbok rugby team. He lamented the absence of seasoned businesspeople in negotiations, arguing that many local investment bankers would have offered their guidance to SARU at no charge, thereby securing a more favourable deal. Instead, Hersov believes SARU's negotiators "rolled over," failing to protect a South African national treasure.
The real issue, Hersov believes, is a lack of capitalist thinkers in decision-making positions: "It's like kindergarten children up against wolves," he said, stressing that South Africa has the talent to strike better deals for national assets like the Springboks. Instead, he warned, we're at risk of letting bureaucrats and administrators take decisions that businesspeople would likely approach differently and more effectively.
"The Rise of Socialism in the Young"
In the heart of his argument, Hersov took aim at socialism's resurgence, particularly among younger generations. Recalling a moment when a student dismissed capitalism in favour of socialism, Hersov noted how surprising and concerning this mindset is in a country where the need for economic growth and opportunity is so pressing.
Hersov attributes much of this perspective to educational systems where, he says, socialist ideas are often promoted uncritically. He believes the leftist influence on young minds is dangerous, particularly when historical examples of socialism's failure are ignored. Hersov pointed to well-known failures of socialist and communist regimes, such as Venezuela, North Korea, and East Germany, where, he argued, the suppression of economic freedoms and wealth creation led to abject failure, hardship, and even humanitarian crises.
"There are business people that should have statues put up," Hersov insisted, citing Elon Musk, Peter Thiel, and Rupert Murdoch as examples of individuals who have created tremendous value and opportunity through capitalism. "We need to start lauding and praising business heroes," he said, highlighting the stark contrast between socialist systems and the success stories generated by capitalist environments.
The Overreach of South African Bureaucracy
Hersov also criticized South Africa's extensive regulatory framework, calling it a barrier to entrepreneurial success. He shared his own frustrations in establishing a business in New Zealand, where he experienced firsthand the burdens of overregulation. Despite his team's entrepreneurial spirit and tenacity, he described the exhausting hurdles involved in acquiring necessary permits and permissions as excessive for a project as simple as building a sports court. This overregulation, he warned, stifles innovation and keeps capital out of the South African economy.
Further, Hersov questioned the qualifications of South African government leaders, arguing that few have real business experience or understand the demands of the private sector. For instance, he pointed to Gwede Mantashe, Minister of Mineral Resources and Energy, who, despite a brief corporate tenure, is an avowed communist. For Hersov, this duality of pro-business rhetoric and communist ideology is a "muddled" approach at odds with the country's need for pro-growth policies.
"Capitalism Needs a Rebrand"
Hersov sees a powerful need to correct the narrative about capitalism, especially among South Africa's youth. In his view, capitalism should be promoted and celebrated as a proven driver of prosperity, but those who believe in it must be more vocal. Hersov suggests that South African universities and schools need to reintroduce students to Adam Smith's "invisible hand" and the documented failures of socialism, while showcasing the innovations made possible by capitalism.
To accomplish this, Hersov called on like-minded individuals, from business icons to economists, to participate actively in educational outreach. For instance, he envisions business leaders visiting universities to openly debate the merits of capitalism versus socialism, aiming to create a more informed and balanced view among students. "We need to be promoting the fact that capitalism works and socialism doesn't, as widely as possible," he stated. The role of intellectual and business leaders, in Hersov's view, is vital to ensure that young South Africans receive a balanced education on economic systems.
A Call to Action: "Capitalism Must Take the Front Foot"
Rob Hersov's conversation with Alec Hogg was more than just a critique of current affairs. It was a rallying cry for capitalists, educators, and business leaders to be proactive in demonstrating the benefits of capitalism. While he acknowledged the allure of socialism's promises, Hersov's focus remained on capitalism's historical and economic advantages. His message to policymakers? Rely on business minds, not bureaucrats, to make the tough calls. And to the youth of South Africa, his message was clear: the heroes worth celebrating are the ones who take risks, build businesses, and ultimately drive the economic growth that South Africa needs.
Hersov's remarks resonate as a reminder that the world is watching South Africa, a nation poised between potential and pitfalls. For Hersov, the way forward is clear: embrace capitalism, encourage entrepreneurship, and let business-minded individuals lead the country into a prosperous future. Whether the nation heeds his call remains to be seen.
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