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Zimbabwe had little to do with supply of currency, and more to do with supply of stuff. They forgot that our economies rely upon the magic of the pin factory.
by neilwilson 9y ago
Zimbabwe had little to do with supply of currency, and more to do with supply of stuff.
They forgot that our economies rely upon the magic of the pin factory. Unsurprisingly if you take land from a specialist farmer and give it to a load of people who have no such specialism, then you get a collapse in production.
The result of that is obvious unless you ramp up taxes to colossal levels to kill the excess money circulation.
- roenxi 9y agoAre you suggesting that a government, having regulated against specific capable farmer running farms, should raise taxes to colossal levels if they observe food shortages? I suspect you want to rephrase your comment. That argument seems to have a non-sequitur in it.
- lucozade 9y agoI don't believe the GP is advocating it. I believe he's implying that you'll get hyperinflation unless you do something draconian to take all the money out of the system. This may well solve the hyperinflation at the expense of not having any (legal) economy left.
- neilwilson 9y agoNot food shortages, price rises. Food shortages are inevitable if you implement a policy that ignores the insight of Adam Smith. So given that you need to shrink the money supply rapidly to fit your new subsistence economy.