Just the Bare Necessities

The global economic crisis affects every country in slightly different ways. For Iceland, it meant a currency collapse, which is perhaps preferable to the non-currency collapse of Ireland, whose Euro-strangled economy is truly on the brink (Telegraph).

But what about those countries that are already poor? Do they have even farther to fall, or will they be beneath the radar of the financial storm? Are there any countries so poorly run that their people must continue to live in ever-deepening poverty? The answer from Havana:

Cuba, in the grip of a serious economic crisis, is running short of toilet paper and may not get sufficient supplies until the end of the year, officials with state-run companies said on Friday.

Reuters (emphasis added)

Until the end of the year? That is a long time to wait. But surely the compassionate government can offer some hope to its citizens subjects?

Officials said they were lowering the prices of 24 basic goods to help Cubans get through the difficulties provoked in part by the global financial crisis and three destructive hurricanes that struck the island last year.

Well, that will certainly help. The government can’t even afford to buy its people toilet paper, but it can lower prices on toothpaste. It’s a nice touch to blame last year’s hurricanes as well; perhaps large government stockpiles in the People’s Strategic Toilet Paper Reserve were destroyed.

Wait a minute – something doesn’t sound quite right about this. There is a shortage of toilet paper, and the government wants to lower prices on other goods. It seems like I am remembering something. Something about shortages… supply and demand, wait – it’s coming to me.

Hey, that’s it! You know, like how when gas gets expensive people stop buying it as much? And when it’s cheap, they just use as much as they want? Maybe that was the problem in the first place! If only the People’s Price Committee had priced toilet paper higher, then maybe Cuba wouldn’t have run out!

Oh no, but they are lowering prices of other goods to help people! No! Quick! Tell them to stop! That’s not how the market people’s economy work! They will just create shortages of those goods too! If only there were some magical way to determine the price of goods and services without the government! No, that’s just crazy-talk. Meanwhile, back in Havana:

“The corporation has taken all the steps so that at the end of the year there will be an important importation of toilet paper,” an official with state conglomerate Cimex said on state-run Radio Rebelde.

Good news, comrades! I just heard on the telescreen that your daily allotment of toilet paper just increased to zero!