Monday, May 23, 2005

Reality Check

As they are now faced with the daunting reality of Zimbabwe's grim state, Mugabe & Co are deeply immersed in a failing contest to maintain their unraveling charade.

Zimbabwean police went on rampage last weekend arresting up to 10,000 people for activities allegedly detrimental to the economy a.k.a. engaging in gainful activity. The government thinks they can will a cheaper cost of living into being by beating out the black market. This won't work. Economics is a game of understanding incentives and managing how people respond to them not a game of "if you dare do this, I'll hurt you so bad." They don't seem to get this though.

Meanwhile Mugabe has been forced to rescind boisterous remarks he made alluding to Zimbabwe's ability to feed herself. Last week they finally devalued the Zim dollar, but it's not enough. And they are even rethinking media legislation!

All these are desperate efforts by a failing regime that's destined to oblivion. It's only a matter of time before the situation implodes and they give up.

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