Alan C. Posted May 12, 2013 Posted May 12, 2013 An old article, but pertinent. Zimbabwe Price Controls Cause Chaos Zimbabwe’s week-old campaign to quell its rampant inflation by physically forcing merchants to lower prices is edging the nation close to chaos, according to some economists and merchants. As the police and a pro-government youth militia swept into shops and factories, threatening arrest and worse unless prices were rolled back, staple foods vanished from store shelves and some merchants reported huge losses. News reports stated that some shopkeepers who refused to lower prices were beaten by the youth militia, known as the “Green Bombers” after the color of their fatigues. In interviews, merchants said that crowds of ordinary citizens were following the police and militia from shop to shop, descending on the stores to buy goods at the government-ordered prices. “People are losing millions and millions and millions of dollars,” said one Bulawayo merchant, referring to the Zimbabwean currency, which has been rendered increasingly worthless given the nation’s inflation, the world’s highest. “Everyone is now running out of stock and not being able to replace it.” Because the government has threatened to seize any business that does not sell goods at the advertised price, the merchant said he was keeping his shop open, but with virtually nothing on its shelves. Economists said that the price rollbacks were unsustainable and that shops and manufacturers would soon shut down and lay off their workers rather than produce goods at a loss. “You can’t buy eggs or bread or things of that sort,” said John Robertson, an economic consultant in Harare. “Suppliers can’t supply them at a price that allows retailers to make a profit.” Just like in Zimbabwe, plenty of Americans are eager to undermine their own well-being by calling in the State to crack down on businesses.
J-William Posted May 13, 2013 Posted May 13, 2013 As the police and a pro-government youth militia swept into shops and factories, threatening arrest and worse unless prices were rolled back, staple foods vanished from store shelves and some merchants reported huge losses. News reports stated that some shopkeepers who refused to lower prices were beaten by the youth militia, known as the “Green Bombers” after the color of their fatigues. wow, they sound like the red guard in China... except I guess these "Green Bombers" haven't killed quite as many people.
Recommended Posts