Arnold Kling  

Mugabenomics

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The Guardian reports


President Robert Mugabe's order that all shop prices be cut by at least half, and sometimes several times more, has forced stores to open to hordes of customers waving thick blocks of near worthless money given new value by the price cuts. The police and groups of ruling party supporters could be seen leading the charge for a bargain.

Read the whole thing. It's how a dictator addresses the problem of inflation. Thanks to Long and Short Capital for the pointer.

Nick Schulz, who sent me the link, suggests that some folks want to do this to American health care prices. Sad, but true.


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CATEGORIES: Price Controls



TRACKBACKS (9 to date)
TrackBack URL: http://econlog.econlib.org/mt/mt-tb.cgi/735
The author at Sacred Stew in a related article titled Robert Mugabe, the great teacher writes:
    ...Is Michael Moore the American Mugabe?... [Tracked on July 17, 2007 5:51 PM]
The author at Eli Dourado in a related article titled Mugabe And ‘Bookish Economics’ writes:
    I often get criticized for my laissez-faire economic views by people who believe that the free market is cruel, cold, and inhumane.  My critics should read the Guardian’s piece from Monday on Robert Mugabe’s populist and thuggish attempts ... [Tracked on July 18, 2007 11:38 AM]
The author at amcgltd in a related article titled Fiat's not Just a Car Made in Italy writes:
    Problem: Your economic (mis)management has created inflation reaching 60,000%, making prices so high they have zeros falling off the end. Solution: Wal Mart-ize the prices, and arrest any shopkeeper who wants to stay in business. Mugabe's in his 80s... [Tracked on July 18, 2007 1:57 PM]
COMMENTS (2 to date)
mgroves writes:

This is such an extreme example, but it can happen anywhere in small amounts or even incrementally where ignorance about economics prevails.

Mensarefugee writes:

IQ IQ IQ...

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