Posted by
InchDeep on Monday, March 17, 2008 3:22:44 PM
Looks like they have a few minor problems in Egypt. Not enough bread. Want to know why? Here is a key paragraph.
While most bread in Egypt is subsidised, the price of non-subsidised
bread has risen by more than 26 per cent over the last year.
They miss the point that subsidies suppress competition. Competition breeds lower prices as those making the bread strive to attract more customers. But apparently this has been happening since 1977. Note how Egyptian President Hosni Mubarak does not understand the problem.
"Where's the problem?" the official MENA news agency quoted Mubarak as asking.
"If it's the production, then it should be increased. If it's the distribution, then new distribution points should be opened."
Oh, and rampant poverty does not help either.
Twenty percent of Egypt's population of 78 million lives under the
poverty line of $2 a day, with another 20 per cent hovering just above.
The World Bank says around 4 per cent of Egyptians live in extreme poverty.
Socialism even fails when the source is Islam.