Tuesday, July 03, 2007

Zimbabwe's Price Controls Result in Empty Shelves

The empty shelves above in Zimbabwe are the result of gov't. imposed price controls, forcing shopkeepers to lower prices by 50% in response to suring inflation that is estimated to be 4,500%.

Two-liter cartons of a popular orange drink, priced at 400,000 Zimbabwe dollars a week ago, were sold for 120,000 dollars at the controlled price, causing supplies to disappear immediately.

According to the NY Times: "Store shelves emptied last week as shoppers scooped up low-priced goods once the controls took effect."

According to another report,
"Government officials claim that the inflation rate of 4,500% - the highest in the world - is solely caused by greedy shopkeepers raising their prices for no good reason. Government propaganda tries to portray businessmen as the true authors of the economic collapse - deflecting blame from President Mugabe."

"Earlier this year, President Robert Mugabe blamed "unbridled greed" for the country's economic woes," according to this BBC story.

MP: Could Zimbabwe's 4,500% inflation have anything to do with excessive money creation and "unbridled government incompetence"?


At 7/04/2007 8:40 AM, Blogger juandos said...

Funny but when I visited 'Rhodesia' back in the seventies and eighties I never saw a store with empty shelves but then again they didn't have a corrupt socialist like Mugabe running the country into the ground...


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