Economic Folly and Paternalism...Two for the Price of One!

Don Luskin points out some Australian economic folly as it pertains to the local wheat crop. The craziness does not end there. Cyclone Larry wiped out almost all of the banana crop, and being a rabidly health conscious people the Aussies simply can't live without fruit, so prices for other fruits are going up. No doubt the economic poobahs down under see this as inflation which is an error, but where it really gets nutty is that Australia prohibits any and all importation of bananas. So not only could they mute the rising price level of fruits by opening up their market to foreign bananas, the governments response is a stunning display of paternalistic arrogance. There are just no bananas to be had for the next several months while plants regenerate and the Australian government is saying to its citizens, "Sorry, you just aren't allowed to have any bananas."