(Macroeconomics analyzes the entire economy and issues affecting it, including unemployment, inflation, economic growth, and monetary and fiscal policy.) Introduction
Nationalization can be defined as the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets being transferred to the public sector to be operated and owned by the state. In this essay I will be discussing nationalization in regards to the mines of South Africa and will be forming an opposing argument. Nationalization of assets is usually common in communist countries where the government controls and regulates the amounts and quality of produce. In South Africa we have a mix-economy but predominantly a capitalist nation free-market economy which is open to foreign investors and privately owned businesses. The effect on our economy:
Our government would like the mines to be in their control and the idea seems appealing to them because they feel it should belong to “the people” and running it would mean that they would have more control over the mining of the gold and other minerals which could increase their revenue but more likely not, which will be discussed further point by point. The mines are a very integral part of our economy, particularly gold is essential to South Africa’s survival, brings in a lot of revenue when exported, and is vital to its survival. When South Africa exports its gold it makes a lot of money which it then brings into the country and may use this money for importing goods that we do not have in South Africa. Things we do not have here need to be imported. Our exports are one of our most important functions as we have a valuable mineral we can exchange on the international market. We also need to export in order to make money and some of those exports include gold and diamonds. At the moment the country benefits from the gold because...