Economics and the mid-life crisis have much in common: Both dwell on foregone opportunities

C'est la vie; c'est la guerre; c'est la pomme de terre . . . . . . . . . . . . . email: jpalmer at uwo dot ca

. . . . . . . . . . .Richard Posner should be awarded the next Nobel Prize in Economics . . . . . . . . . . . .

Thursday, August 18, 2005

Operation Murambatsvina

For aerial photos of one small portion of the destruction produced by Mugabe in Zimbabwe, see this entry at Wikipedia.

Something else Mugabe apparently has been able to produce with ease: money.

Inflation is a serious problem there because Zimbabwe has fewer goods with more dollars chasing them. For some fascinating stories, see here. Also see the Zimbabwean Pundit here. [Thanks to MA for the links]. An excerpt from the latter:
There is nothing that money can buy in Zimbabwe. People have nothing-nothing. People are suffering and they are hungry.
It sounds a bit like descriptions at Cafe Hayek of the tragedies in Niger. The Zimbabwean Pundit continues:

The prices of food and everything have gone up threefold since fuel price increases were effected but our salaries have not been reviewed.
and lists some prices. Unfortunately, he blames the intermediaries for the high prices, when it is Mugabe-created declines in supply plus an inflated money supply [see here] that are causing the rampant inflation.

Sadly, poverty is a problem involving real economic variables, not nominal ones. And throwing money at it does more harm than good if the real resources do not change or are actually destroyed.
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