Not Always The Problem

John Hinderaker notes that socialism always results in toilet paper shortages.  People in Nicaragua during the Sandinista dictatorship found a way around that:  they used the local currency.  This is one of the few cases in which the use-value of fiat currency is greater than its medium of exchange value.

Another fun example is when people wallpapered their houses in German currency during the 1920s, as the currency was cheaper than actually buying wallpaper.

Advertisements

One thought on “Not Always The Problem

  1. Pingback: for

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s