Middle East Economic Puzzle: Theory of Relative Incompetence, Verboten Economics, Verboten Politics...……..
They do that in many parts of the Middle East, including some (Persian) Gulf states as well. A state ministry sets two times a year when all merchants, all stores, can advertise sales. They are not allowed to advertise sales, or have sales, or to even post innocent phony “sale” signs outside the stores, at any other time. It is verboten.
In some states on the Gulf, I suspect it has the effect of limiting price competition and keeping the consumer from reaping the benefits of competition. This can be deliberate since Commerce and Trade ministers in the Gulf states usually spring from the merchant families of importers. They are incompetent at running public institutions, otherwise we would not be in the mess we are in.
All this would give old Milton Friedman a heart attack, except that it won’t do him any good (or bad) where he is, wherever that be……..
They also apparently believe the incompetent oligarchs and potentates who run things are less incompetent than the said incompetent consumers. This may be the case: otherwise how could they get away with what they have gotten away with for so long? Let's call it the 'theory of relative incompetence', shall we.
As for the merchants: it is their role to do whatever they can do. And they will keep on doing it, even in the United States: they, the financials, already are back to doing it while the body of the Great Republican Recession is not cold yet.
It is the same all over the world: the consumer doesn’t have a chance. Does he?
Actually he can do one of two things: aspire to become a merchant (a bank CEO or hedge-funder in America), or run for office. Then he can do it "unto others". But that, especially the latter, does not apply in the Middle East: most countries do not allow you to eagerly run for office as Americans do, or even to diffidently stand for office as the British do.
The ideal thing is to be born in the office; that way one can also be certain to die in the office, one way or another.
Cheers and Ramadan Kareem
mhg
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