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Monday, July 25, 2011

Bethlehem bakers go on strike because PA lowered price of bread

Palestine Today says that bakers in Bethlehem are calling s strike today, in protest of the PA lowering the price of a kilo of bread.

The price has been lowered from four shekels to three and a half shekels.

The bakers are complaining that they cannot make any profit at such a price level.

I had no idea that the PA set prices on basic food items. Economists have never been thrilled with such heavy-handed methods.

Economist and Nobel prize winner Milton Friedman once said, "We economists don't know much, but we do know how to create a shortage. If you want to create a shortage of tomatoes, for example, just pass a law that retailers can't sell tomatoes for more than two cents per pound. Instantly you'll have a tomato shortage."

UPDATE: I am told that Israel does the same on various staples. (h/t Akiva)