Markets in everything

Muammar Qaddafi of Libya, the king of Bahrain and the emir of Kuwait are offering one-off handouts to stop people demonstrating. These are princely, worth $4,000 per person in Kuwait and $2,500 per family in Bahrain.

The full article, about political pork in the Arabic countries, is here.  For the pointer I thank Maximiliano Levin.


Whether this is political pork depends on your point of view.

If you believe that they took this money from their people, it is just returning some, but not all, of it.

This might be a good way to witness the effects of a "real" helicopter drop of money on an economy. Who knows. Maybe they'll even use helicopters to deliver it.

By this definition, it is also political pork to give people a tax cut while at the same time borrowing money to pay for it.

I don't believe there is any pork in Islamic countries.

It's kind of like here. The unions threaten to shutter a business or bring government to a standstill, and they're paid off to stop demonstrating.

Comments for this post are closed