THIS IS WHAT HAPPENS WHEN IDIOCY AND THE LEFT REIGN:
We are interested in what happens in Zimbabwe if for no other reason than it is one of the most perfect examples of what happens to a nation when its philosophy is Marxist and far-left-of-centre economic policies are put into effect.
Here was, at one time, the most verdant nation in Africa. Here was a nation whose people once had the highest standard of living on the continent. Here was a country
that exported food to the rest of the continent in size and in quality. Here was a nation that even when it was considered a pariah for its racist policies and even when it was cut off from the rest of the world and when trade was nearly impossible, was so economically strong that it was the shining economic light of that part of the world. Now it is for naught. Now, Zimbabwe is wracked by inflation that is running into the millions of percent per year. Now she cannot come close to feeding herself, much less to export food to her neighbours and around the world. Now rather than being a bright, guiding light to the rest of Africa she is a black hole into which her wealth is collapsing upon itself.
Things have only gotten worse as Dr. Mugabe has put one idiotic policy after another into effect in hopes of saving his regime. Last week, he announced that because
inflation was becoming Weimar Republic-like in nature henceforth all retail establishments have no choice but to cut their prices by half! Within a day, rather than having products to sells, the shelves of the nation lay empty. In some of Harare's main supermarket neither bread nor milk could be found. Meat was suddenly gone from the shelves. Cereals, fruits, eggs... all gone from the shelves.
Rather than risk arrest by Mugabe's police, retailers cut their prices and ran down their inventories and have not replace them... nor shall they.
Last week, Vice-President Joseph Msika, who was standing in for Dr. Mugabe while the President attended an African Union summit in Ghana, said that the government will take over any manufacturers who chose not to comply with the pricing directives aimed at reducing an official inflation rate of 4,500 per cent [Ed. Note: The "official" inflation rate and the reality of inflation are manifestly different, for clearly the government tries to represent inflation to be "better" than it really is. In reality, inflation for the average Zimbabwean is many times higher than this "official" rate. Indeed, it may be approaching approaching seven figures as we write.]
At many supermarkets chaos reigned as the managers and/or owners of the stores were forced by police and government price inspectors to empty stockrooms and sell products at half price. We read where one executive with a supermarket chain was
beaten and then taken off by Mugabe's police. Others almost certainly have followed.
Dr. Mugabe has said that the store owners were collectively working to spin-up civil unrest as part of a British plot to topple him. Speaking for Dr. Mugabe, Vice President Msika said at a rally that the government will not allow sell-outs, renegades and money-mongers to interfere with our good way of life. You are warned to stop.... Do not distort our prices. Stop it or we will force you to close or we take over your factory.
All the while, the Zimbabwean stock market continues on a tear to the upside. After all, in a nation where money is being printed by the central bank at a pace necessary to keep inflation at its current break-neck speed... and to worsen by the hour... and where capital controls are such that the little remaining wealth of the country cannot be sent abroad to be protected from Mugabe's policies, the only investment arena left is the stock market. So the country plunges into chaos caused by Mugabe's Marxist thinking, but stock prices soar! It is so comical... and it is so sad.
What is it with Africa?
Do the people who helped oust the white-ruled government of Rhodesia wonder if they did the right thing? Is South Africa next?
Stay tuned.
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