chadlingard I am not much of an economist, but I don't think you will never have a pure capitalist system that works. Every country needs to look after their poor, old, sick etc., regardless of their economic/political system. Without some form of "social welfare", you will end up with a divided country - the very rich, and very poor.
The difference here (as I see it), is that this is a bottom up approach, rather than a top down one. Rather than giving handouts, they want to make everyone part of the economy with the Negative Tax Incentive. Removing the minimum wage barrier will entice people to get a low paying job that still gives them self worth and empowers them, rather than just waiting for their grants every month.
In the short term this might not seem like much, but in the long term you empower a nation by having more people be part of the economy while building the skills of many individuals.
Imagine if BBBEE was implemented 20-25 years ago, and it focused on providing viable education for the previously disadvantaged - school fees, books, food, skills development etc. Where would we be today?