The NYTimes notices the developing crisis in Zimbabwe, observing that the economy ground to a halt a long time ago and has been receding ever since meaning people don’t have jobs, money, food, or gasoline.
What I could not help but notice is that the Grey Lady admits that managed economies are bad.
"Robert G. Mugabe has ruled over this battered nation, his every wish endorsed by Parliament and enforced by the police and soldiers, for more than 27 years. It appears, however, that not even an unchallenged autocrat can repeal the laws of supply and demand."
Now I’m left to wonder if the editors at the Times will pull this up the next time they cover a proposal for windfall profits taxes or pharamceutical price controls?
"Moreover, the manufacturer said, suppliers of fabric have also been ordered to cut their prices, even as inflation and problems like power failures have raised their costs. Once their existing stock of fabric is exhausted, he said, there is little incentive for them to make more."
Tags: Zimbabwe