THERE IS NO SHORTAGE OF FOOD IN VENEZUELA.

THERE IS NO SHORTAGE OF FOOD IN VENEZUELA. This article describes how Hugo Chavez is trying to control inflation in Venezuela by price controls. Shortages of food items have developed. “But in recent weeks, the scarcity of items like meat and chicken has led to a panicked reaction by federal authorities as they try to understand how such shortages could develop in a seemingly flourishing economy.” Of course, as pointed out here, shortages and price controls are two sides of the same coin.

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3 Responses to THERE IS NO SHORTAGE OF FOOD IN VENEZUELA.

  1. Annalisa says:

    I read the full article and was amazed at the exotic goods that are available and the basics that are not. Why does that make any sense at all? Maybe it shouldn’t, since price controls are so artificial?

    I wish I could hear Professor Coe’s rant about this. I’m sure he’s pretty disgusted with it, given how much he despised rent control.

  2. Nick says:

    The Basic Guide to Economics by Gladwell that Dad got me explained why this stuff is catastrophic in the very first chapter. To think, Dad could save the entire nation of Venezuala if he gave Chavez that book.

    How is it that national policy can be so stunned and caught off guard by such basic principles? Attempts at popularity by keeping things cheap for a short time?

  3. Pingback: THE “SHORTAGE” OF TOILET PAPER IN VENEZUELA. | Pater Familias

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