Economy - Zimbabwean style

[Umfriend]

On Zimbabwe, this mugabe guy has been making a number of political decisions about (re-)distibuting capital (in the form of LAND), which have turned out to have severe economic repurcussions. Even I could have predicted that. More than of 1923 Germany, this reminds me of Russia and their 500 day plan to convert to an economy with free markets -> Failed, and I did predict that. (With mugabe, I was not aware of his plans at the time).

The problem is simply that for production, a number of factors come in to play. In the Russian case, the 500 day plan simply called for all government coordination of production to stop, and the "market" would take over in 500 days..... Of course, no markets exists without decent contract law, enforcement of that law, trust and market organisations (where do buyer and seller meet?). The idea that something like this evolves in 500 days (while it took centuries to get where it is in western societies) turned out to be false.

In zimbabwe, we now learn that having fertile land is meaningfull, only if you know how to benefit from its fertility. It's a bit like having a fertile woman, buit not knowing what to do with yer dick....

[Wulfman]

Originally posted by Umfriend
Indeed. Aside from the industrious (english?) mindset, sound economic policies (by the socialist government at the time) stopped hyperinflation and, after a brief period (less than one year) of high unemployment, got industry and agriculture back on track again.

The economic crisis op the early 30's (started in 29) was something the socialists could not deal with (no one could).
Umf

from what I know, the problems in 29 arose from financing the prosperity through foreign credits, which had to be repaid after some troubles on the stock market . the economic policies seemed not to be that sound at all.

mfg
wulfman

[Umfriend]

from what I know, the problems in 29 arose from financing the prosperity through foreign credits, which had to be repaid after some troubles on the stock market . the economic policies seemed not to bet that sound at all.

AFAIK, the new Reichsmark created in 1924 was backed by golf at least for 30%, which was not bad for a economy were a lot of money was still in bearer form. To fund the (war)investments post 1933, indeed a lot of foreign credit was used, and inflation did rise again. In 1936, Germany fixed prices by law to stop inflation becoming apparant. For a government to fund itself then, robery is a nice alternatife . This started soon enough.

[Umfriend]

A wheelbarrow full of Deutschmarks wouldn't buy a loaf of bread. And we wonder why they all followed Hitler.

Just to have said it. I am sure you do not mean that the inlfation of 1923 in Germany is _THE_ explanation for Hitlers rise to power. Which is silly. I would even say that the the inflation and H. coming to power more likely share some _causes) than that they have anything to do with each other per se.

[thop]

Originally posted by Wulfman
no, he is right - germany did flourish for some time in the twenties, even before we sent them hitler.

[Gurm]

Um,

Of COURSE not. But the destabilization... Hitler offered stability, jobs... and the cult of personality is strong.

Gpar_

[Umfriend]

Gurm,

That is the point: the 1923 inflation did not destabilise Germany, on the contrary, save for a brief period of 1.5 yrs. I don;t think a lot of ppl have long enough memories for that to play a part in their election decision in 1932. Anyway, before the 1929 depression, fascists were _not_ very much loved in germany. Their coup attempt in '24 failed miserably.

[Gurm]

No no. LONG TERM destabilization. Yes, they recovered - briefly. Then they destabilized AGAIN a few years later (you could argue that this was a result of the global economy yadda yadda et cetera) and ...

Gpar_

[GuchiGuh]

funny to see that even thou japan & germany totally got wooped during the end of the war, both countries are in the top 7 economic powers of the world.

It also makes me wonder what would happen if America ever got attacked. So far, no single bullet has hit american soil.

Long live the sleeping dragon! down with american government and all their secret sh|t. long live american cars and the people!!

[Umfriend]

Gurm,
You're confused or simply not clear, let me explain:

No no. LONG TERM destabilization.

The hyperinflation of '23 did not lead to long term destabilisation of the German economy. I wonder which economic theory could explain a destabilisation in '29 to be caused by a former one in '23, which was recovered from already...?!?

Yes, they recovered - briefly.

They did not recover _briefly_. The german economy was growing at an healthy rate with reasonable unemployment figures (absolute, but also comparatively) for a far longer time afterwards then the actual hyperinflation period lasted.

Then they destabilized AGAIN a few years later (you could argue that this was a result of the global economy yadda yadda et cetera) and ...

So, what is it, did the '23 period cause long term economical detrimental effects or was the 29-33 era something *independent* from that former period? Make up yer mind.

Let's just agree that the remark:

Sounds like pre-WW2 Germany.

A wheelbarrow full of Deutschmarks wouldn't buy a loaf of bread. And we wonder why they all followed Hitler.

was meaningless and call it a day, shall we?

BTW, I don;t like the way your avatar is pointing at me.....;p

[RedRed]

It also makes me wonder what would happen if America ever got attacked. So far, no single bullet has hit american soil.

ummmm

1812..... The British/Canadian War

Sacked Washington.... (when Washington wasnt looking )

(but then America did start that one )

RedRed....

[Tjalfe]

.. and the Canadians learned that the white house does not catch fire too easily