By Alec Hogg
As 2014 winds down, its message to managers of national economies couldn’t be stronger. A resurgent America is back with annualised GDP growth of 5%. Even better is in prospect after its innovative frackers beached the artificially high oil price. An expanding US is good news for the rest of the world. As, obviously, are lower energy costs.
While we all look forward to a better 2015, let’s not forget how Americans keep teaching us economics has rock solid laws. You only get back in proportion to what you invest. And putting in is best achieved in a system that incentivises action, unleashes human potential, encourages enterprise.
There is overwhelming evidence that socialist orders cause economic destruction. Those who swim against the market tide never get to control outcomes in the way they expect to. Cracks soon appear and, like a collapsing Eskom silo, effect damage far exceeding any short-term benefits. That’s the real message. Let’s listen.
