22.9.07

Ramadan Prices

I wasn't shocked when I realized that it happened, prices are going to climb every Ramadan, the government and His Majesty are trying to provide an outlet for the destitute and the impoverished, the effort is sincere but the self-gratification is inevitable.

In layman's terms: tell the people we created a market for the poor, and you tell the people that all other markets are for the rich, merchants will think "I will raise the prices since there is a place for people who don't like it." I agree with Fahed Al-Fanek on this.

Check it out here and here

Obviously the government is not resurrecting the Ministry of Supply, but everyone who reads this blog knows I am no capitalist, but I do agree that people should not speculate when there are statistics, however, a 65% decrease in the cost of fruits and vegetables where taken directly from middle-men, intermediaries.

I think the governments role should be somewhere else, releasing support of any kind, to any industry, let the market take it's place and then, like we saw in the banks, telecommunication, insurance and other sectors go back to the regulation role.

Why such a change of heart from me? Not really, the next step should be tax exemptions for collectives and co-ops which will pave the way for a more socialistic endeavour, more on that later.
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