Monday, March 27, 2006

Government says, "no bananas for you!"

Yes, the latest news gives me more fuel for another attack on government regulation. Whilst natural disasters, especially of the unexpected variety, do indeed occur, regardless of what government is in place, its what happens in the wake of a disaster that is indicative.

After last week's cyclone destroyed most of the banana crops in the country, Australian banana prices have doubled/tripled in recent days.

Normally, the free market is a wonderful and dynamic system. It springs into action. Consumers and producers can normally figure out what to do with the available resources by setting prices themselves. It only makes sense that if the supply of Australian bananas is temporarily crippled, that importers step in and supply consumers with more overseas produce.

Well keep on dreaming. This government has a ban on all imports. Get used to higher prices for the next year, and you can't blame the cyclone, you can only blame protectionist beliefs held by Australian farmers and socialist politicians.

Remember this story well, next time you hear an Aussie union lobby the media or government and say that they are all about protecting "the rights" Aussie jobs and Aussie farmers. The only rights they are really talking about is... removing your right to purchase foreign goods from willing sellers.