Here are 9 really interesting episodes from economic history.
This one shows how government policies with unintended consequences get "fixed."
In order to stop rising inflation and devaluation of the
currency
in third century Rome, Emperor Diocletian instituted fixed prices on
most consumer goods. Anyone selling goods at prices higher than those
of the emperor was put to death; this led to hoarding of goods. A law
was then passed that forbade the hoarding of goods. Penalty? Death. So
people just closed their businesses, then another law was passed. You
guessed it: shut down your business or fail to follow in your father’s
business? Death. It’s amazing the Roman Empire lasted as long as it did.
And you wonder how the federal tax code (and even the NCAA manual) got to be so damned complicated. I knew about #3.
In 15th century Germany, grain shortages – acceptable – frequently led
to beer shortages – unacceptable. In response, brewers in towns like
Munich and Regensburg used seeds, spices, and rushes to flavor their
beers. Showing an uncomfortable foreshadowing of future events, German
authorities instituted purity laws stating that only water, barley, and
hops could be used in the brewing of beer. The rule, or Reinheitsgebot,
is still on the books today.
Traditional American brewing (i.e. the light American lagers, high on quality but low on taste) is often frowned upon, espeically in the US. But the microbrewing revolution and, later, the homebrewing and craftbrewing revolutions in the US have really brought out some outstanding and creative beers to market. As a homebrewer, I have brewed beers like oatmeal stouts, milk stouts (with lactose sugar), coffee stouts, licorice stouts, cream ales (also with lactose sugars), and wheat beers with fruit. But I never would have been able to market those in Germany (had I chosen to become a professional brewer) because they didn't meet code.
Via the Door.
