Thursday, August 4, 2022
Sri Lanka may be the first modern nation to adopt deliberate policies that have led to mass hunger and bankruptcy. The government, for a variety of reasons, listened to foreign advocates of back-to-nature organic farming, specifically outright abandonment of highly effective synthetic fertilizers and pesticides.
The result was endemic crop failure. Cash crops for export failed. Widespread hunger followed. Without foreign exchange, it became impossible to import key staples like food and fuel.
Sri Lanka once had a per capita income twice that of nearby India. Now it cannot feed or fuel itself.
Unfortunately, its incompetent government trusted radical environmental advisors, many of them foreign experts. Sri Lanka believed it could become the woke darling of the "Environmental, Social, Governance" movement, and in that way draw in unlimited Western woke investment.
Instead, it has embraced a policy of national suicide.
Recently, a group of 55 distinguished pro-administration economists assured us that President Joe Biden's massive borrowing and new entitlements agenda were not inflationary. In September 2021, these economists with 14 Nobel prize winners among them declared that Biden's inflationary policies would actually "ease" inflation.
Last month, inflation spiked to an annualized rate of 9.1%.
None of these "blue-chip" economists have offered any apologies for lending their prestige to convince Americans of the absurd: that inflating the money supply, spiking new government spending, incentivizing labor non-participation, and keeping interest rates artificially low would not cause inflation.
A Nobel Memorial Prize means never having to say you're sorry. Not that it would do much good anyway.