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Definition

A socio/political philosophy which ostensibly aims to do what is best for ordinary people. Unfortunately, most populist ideas ultimately result in the ordinary people being worse off. A good example is the populist debate over whether and under what circumstances the government should be able to expropriate land without compensation. On the face of it, this sounds like a good idea because it rapidly overcomes the problem of unequal land distribution in South Africa. The problem with it is that it interferes with the basic constitutional principle which protects an individual's ownership of assets. For foreign investors, the idea that they could invest in South Africa only to have their assets expropriated without any compensation is often enough to make them invest elsewhere. If their capital does not flow in, then South Africa loses those opportnuties to grow and create jobs. Usually, populist ideas offer short-term solutions which have longer-term negative consequences.

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