The dangers of protectionism

The South African Motor Manufacturing Industry is a case in point.  Do subsidies work? Apparently not that well.

As part of DDF transport and economic policies, a Direct Democracy Forum administration will be looking carefully at the way it applies subsidies and will endeavour to do so such that the basic needs of the economy are met as a result of any subsidies, and industry will be weaned off subsidies which do not directly benefit the economy.  In the case of the SAMMI, how does the economy benefit from the considerable subsidies it receives.  Has employment in the sector risen?  Apparently not.  Have exports risen? Also apparently not.  So why are we continuing to subsidize these industries?

The DDF do not pretend to be expert economists but a DDF administration will be asking these sorts of questions of people who count themselves expert economists, and we will be applying common sense to their answers.

The DDF are not scared of spending in order to stimulate the economy.  We would just rather spend wisely than unwisely.

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