Do you like bananas?

There are 3 kinds of shortages that are regular news in Australia: the skills shortage, the water shortage, and (the topic of this entry) the banana shortage. Australia produces bananas in northern Queesland, somewhere near Cairns. They have protectionist laws that support the domestic industry by making it illegal to import bananas. This year, nearly the entire banana crop was destroyed by a cyclone, so this (see below) is what's passing for bananas these days.


The sad thing is, these aren't even the worst bananas I've seen. How does this personally affect me? It doesn't! I actually hate bananas! You couldn't pay me enough to eat one. Hmm... well.. maybe that's not true. Any offers? haha =)

Because of the crop destruction, and refusal to allow imported bananas, sickly bunches like this have sold for x5-10 what they used to. It's also spawned a new kind of crime... banana theft. I kid you not! I wish I'd taken a picture of this, but when I was in Sydney I passed by this small restaurant that sold 'interesting' sandwiches. Just like those notices at convenience stores or gas stations where it says that they don't keep much cash overnight; taped to the door was a notice saying that they don't keep bananas in the store overnight. I'm not making this up. I saw it with my own eyes. Guess the banana shortage has driven some desperate folk to resort to stealing to get their potassium fix.

This would make a great economic case study, on the elasticity of demand for bananas, and destructive effects of protectionism. Hopefully by the time I come back to Australia next year, the new crop will be ready, and the banana S and D curves will be at equilibrium. I also hope that I won't be sounding like my textbook anymore. =P