Zimbabwe is ruled by a president, who is performing an interesting economical test: consumer prizes are fixed by his personal order. But they are fixed below production costs.
When a baker is forced to sell his bread for less than he pays for the flower, he would be wise to shut down his bakery. If he refuses to sell at the set prizes, Zimbabwe's President, 83 years old Robert Mugabe, will throw him into jail.
It is very nice to try to keep consumer prizes fixed, but when the baker has used all his money when buying flower, he'll finally have no more money to buy more flower, and thus no more flower to make any more bread.
Bread prizes will be fixed, but there will be no bread.
Could someone please explain to president Mugabe, that he is killing his people?
2007-08-16
Mugabe's economic theory
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