Wonder why food prices are high?

Here is anther great write up by Sovereign Man

May 7, 2015
Victoria, Chile

Boris and Svetlana were simple farmers back in the old Soviet era.

They grew grapes on Russia’s bountiful Caspian coast, dried them in the sun, and sold raisins according to the quotas set by the committee.

Every year the Soviet Union’s Raisin Administrative Committee (RAC) would regulate production, often ordering farmers to destroy upwards of 40% of their crop in order to achieve some sort of bizarre, contrived equilibrium.

This adherence to the religion of central planning in the Soviet Union was so severe that even after the wall fell they couldn’t quite manage to divorce themselves from it.

In his book ‘The Company of Strangers,’ British economist Paul Seabright recounts a hilarious conversation he had just a few weeks after the breakup of the Soviet Union.

Seabright was speaking to the former director of bread production in St. Petersburg, who said:

“Please understand that we are keen to move towards a market system. But we need to understand the fundamental details of how such a system works. Tell me, for example: who is in charge of the supply of bread to the population of London?”

Seabright explained, of course, that no one is in charge of such things.

In the West we don’t have centrally planned committees to regulate the supply of bread, raisin, milk, etc.

One would think.

 

Be sure to follow glass of scotch on Quora.  Check out my answers on questions relating to China and other topics.

 

glass of scotch

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