After today's (August 22, 2011) events, I don't know that Qadaffi will be in a position to make the Libyan people suffer any longer. His terrorist activities and the international sanctions imposed against the nation because of them probably created more hardships than any of his own personal actions. As previously mentioned in the above posts, a dictator by definition rarely puts the people first.
Qadaffi has amassed a fortune, literally billions of dollars, stashed in bank accounts around the world, stolen directly from Libya's oil revenues. This is money that long ago could have helped develop his country's economy, made for more stable access to food, medicine and education. What he has stolen, he has largely squandered, building up his military or at one point pursuing chemical weapons. And his 40+ year reign allowed for no dissent, no public opposition, and a reportedly brutal state security service enforced that.
One thing that Quadaffi has done to make some of his people suffer is to suppress the human rights of minorities in his country. In particular, he has tried to destroy their native culture. He has prevented them from using their langague and has (up until a few years ago) banned the use of ethnic Berber names.
This is perhaps not the worst thing tha Quadaffi has done, but it is a way he makes a segment of "his people" suffer.
Dictatorship by its very definition involves the suffering of people. The restricted freedoms and the way that autocracy is seized and enforced means that the citizens of Qadaffi's regime have limited opportunities and restricted free speech. Democracy is absent, resulting in hardships for Libyans. As #2 makes clear, Qadaffi supports his tyrannical power with violence and torture.
I think that Qaddafi makes his people suffer by the dictatorship he imposes on the citizens of Libya. Qaddafi is not one to tolerate dissension or freedom of opinion. He responds to such elements with the force of his office and violence, as needed. It is his desire for power and the level to which he seeks to consolidate it as something that allows him to be similar to Macbeth, another ruler whose desire for power led him to embrace violence as something that seemed quite plausible and acceptable in his own mind. I think that another way in which the Libyan leader has made his people suffer is not diversifying Libya's economic activity. Qaddafi has not done much to open his nation to the promise of a globalized setting. The result is a challenging economic condition both within Libya and outside of it in terms of its viability in the world economic community. This has been another way in which hardship has been evident. I think that Macbeth and Qaddafi might possess similarity in how they view political power as an extension of their own desire and their own sense of self. For both leaders, political authority comes from power and the recognition of all that they are all- powerful.