That is only true in an economy where disposable income is not an issue..... which SA definitely is not. Second hand goods have always had a large demand.... and incomes are disappearing nvm disposable incomes.This particular problem has nothing to do with the insurance problems. Two separate problems. This is a demand issue. Most of the looted goods were looted with the intention to be sold. This means the market will be flooded with double the number of goods with half the goods in mint condition at 50% off. In other words once retailers eventually get back in business they have a new competitor at 50% off. This would cause a massive hit on the demand side forcing business closures and further loss of jobs. Auctions would still hit the demand side.
Destroying everything might actually tank the economy faster than reselling it especially with the current global shortages which might lead to a scarcity economy in general not just in sections.