Skip to comments.Mugabe Bans Pay Rises To Push Down Inflation (Zimbabwe)
Posted on 08/31/2007 3:15:34 PM PDT by blam
Mugabe bans pay rises to push down inflation
By Graeme Baker
Last Updated: 7:48pm BST 31/08/2007
Robert Mugabe, the president of Zimbabwe, yesterday banned pay and price rises without his authorisation in an attempt to tackle the country's hyperinflation.
"No one can now raise wages, rents, service charges, prices and school fees on account of increases in the official and unofficial exchange rates," the government-controlled Herald newspaper said. "The net effect of the changes will be to push inflation down."
Pay rises for the next six months will have to be approved by the national incomes and prices commission, headed by Mr Mugabe, and must not be linked to the inflation rate, which is running at almost 8,000 per cent.
"Those who breach the standards can be fined, jailed for up to six months, or both," the Herald added.
The edicts come two months after the government ordered many retailers to halve their prices, resulting in widespread shortages and a strengthening of the black market.
That ban has been extended to include all businesses. Shops had previously raised prices daily to keep pace with inflation, while employers increased wages every month to cope with rising prices.
John Robertson, an economist in the capital Harare, said the move was a result of crumbling government revenues. He warned that it could have repercussions within the army, which has so far stayed loyal to the president.
"I just wonder when they will try to reverse the laws of gravity, because this does not work," he said. "Many soldiers and teachers [are] now demanding salary reviews."
Nelson Chamisa, a spokesman for the main opposition party, Movement for Democratic Change, said the wage freeze was "a sign of desperation and lack of policy".
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Lot of good a pay raise will do when a loaf of bread is probably $50. What a genius... ha...
I hope he gives the following speech:
“I know many of you think I am as queer as a hen with teeth. But then you can’t use the word queer.
“I will prove that I am either not a flaming faggot or that it doesn’t matter. Tuesday morning I intend to switch my party affilitation in Idaho to Democrat.
“I will then fly from Boise to Chicago and from Chicago to Boston. I will take the ferry (Hey! You with the orange shirt, and blue tie, stop giggling. It’s a freakin’ boat.) to Provincetown where I will spend the three days required to become a resident of Massachusetts.
“On Friday I will apply for a marriage license with my long time friend Barney Frank.
“No, I will not resign from the Senate. The Constitution only requires that I be a resident of Idaho when elected.
And in the end when there is nothing of value left it dies - only later to be reborn by a new leftest that says the last leftest did it all wrong and that he/she will make it work under their supreme guidance...
Venezuela has just begun with its latest leftest... And the results will be the same...
ummm...are your responding to the Mugabe wage-freeze thread?
your = you
Ahh the good old days of the Soviet Union.
He is so stupid! He should raise wages, lower prices, and ban inflation. That’ll do it. Print the money stupid!
I don’t know much about Zimbabwean politics but I’m guessing this Mugabe guy is a democrat.
Socialism triumphant is an ecstatic death dance - which may be the whole point of it!
History would not contradict that judgment.
The light are OUT and nobody’s home.
Pssst...Hey!...If you're inflation rate is 8,000 per cent, pay raises may be the least of your problems.
Oh, there will be pay raises all right. The ones BobbyMugabe approves of. If he’s smart that will be the army. The rest will starve.
A phrase I hope we won't have to hear for too much longer.
Canute was making a point.
Mugabe is a dangerous idiot.
This Mugabe guy is a Communist. He calls himself “Comrad” and his cabinet “politburo”
yup, economic stupidity will not fix economic stupidity
If he's ever overthrown there should be lots of central banks willing to give him a job.
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