Promising free stuff to the entire population

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Sernie Banders wins an election in a far away land, promising free stuff to the entire population. Upon taking office, he confiscates all private property in the country, outlaws the price system, and redistributes all goods in an equal manner to every member of the population. Every citizen receives the exact same allotment of transportation, housing, food, education, etc. Sernie promises to continue this regime into the future. All producers will be asked to continue their previous production levels, but their output will be delivered to government offices for redistribution immediately upon production. Using both the consumer and producer sides, explain why the future of this country is quite grim.

Reference no: EM131431730

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