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Venezuelan Price Controls Lead to Predictable Shortages
Venezuelan grocery stores have products shoppers don't want.
Marian Tupy | 9.19.2017 10:00 AM
Yesterday, Bloomberg had an interesting article about food shortages in Venezuela. Contrary to popular perception, the Venezuelan shops are not empty. Bakeries, for example, offer "a wide variety of freshly-made breads," including, "a fat, dense loaf called the gallego, or a soft sobado." Conversely, "the canilla, a soft, buttery take on the baguette that's been the beloved bread of choice in this South American country for decades," is missing from the shelves. Why?
The canilla has disappeared because its price is set by the state. The price of the bread is "set at such a low level—1,500 bolivars versus the 4,500 to 7,500 a gallego commands—that bakers complain it doesn't come close to covering their costs. So they use new-found supplies of wheat in the country to bake every other kind of bread imaginable."
Say what you will about socialism, it always follows a predictable pattern. In an attempt to make something available to everyone, the socialists ensure that it is not available to anyone (except for the politically well-connected). As a child growing up behind the Iron Curtain, I recall constant shortages of basic foodstuffs. The price of meat, for instance, was kept artificially low due to political considerations. Low prices created an impression of affordability. On their trips abroad, communists would often boast that workers in the Soviet empire could buy and produce more meat than their Western counterparts. In reality, shops were often empty.
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originally posted by: Lucidparadox
1. The hoards of anti-maduro people in here keep pointing to the election... Which I don't understand.. Maduro won the election. Thats usually what happens when you get more votes than the other person. It makes sense though.. I've noticed that those who are anti-maduro are pro Trump.. who also didn't get as many votes as his opponent.
originally posted by: Lucidparadox
3. Maduro has been dealt a # hand. The sanctions against Venezuela are what has caused the chaos there. NOT socialism.
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They also stressed that the sanctions were not against the country of Venezuela but only against individuals deemed responsible for human rights or other violations.
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originally posted by: Lucidparadox
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I've noticed that those who are anti-maduro are pro Trump.. who also didn't get as many votes as his opponent.
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Call for revolution
Chávez came to power, after unsuccessfully attempting a coup, by winning an election in 1998. He won by selling the idea of giving power to the people, and ending the corruption of the traditional political parties that had governed Venezuela for the last quarter-century.
He won the election by a convincing margin. He started his presidency with the support of the people and a barrel of oil going for more than US$100. His original popularity and success permitted him to accomplish many of his goals that in other circumstances would have been very difficult.
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But, Lameda claimed, Chávez’s plan to accomplish this involved taking control of all branches of power – the executive, legislative, judicial and military.
Consolidating power
Once in power, Chávez replaced the existing Congress by creating a new National Assembly, which he controlled. He used his new National Assembly to rewrite the constitution to perpetuate himself in power. The presidential periods were originally five-year terms without the possibility of immediate reelection. Former presidents could run again only after two terms had passed. The National Assembly changed it to six-year terms, with unlimited reelections, and extended these new parameters to governors and other elected officials.
Chavez served as president for 14 years, until his death in 2013.
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originally posted by: vinifalou
Mhmm, I wonder how many of CIA’s fingers are in this...
You actually did do that. But in fact who has a "vested interest in Venezuela" are other groups...
You certainly did not do that. You implied "Trump has monetary vested interests in Venezuela," which sorry to say is not true...
originally posted by: ElectricUniverse
BTW, I just watched an interview of the Venezuelan ambassador to the U.S. and he also said the majority of the Venezuelan army, including officers, are ready for a change in regime. They do not support Maduro.
originally posted by: OccamsRazor04
a reply to: ArMaP
Hedging those bets, they want change, they want to be on the winning side more perhaps.
originally posted by: Peeple
As police force to oversee the elections Guiado surely would be delighted to organise.
To ensure everybody who has a vision for how to get out of this mess can run for president for 4 years.
originally posted by: CriticalStinker
originally posted by: OccamsRazor04
a reply to: ArMaP
Hedging those bets, they want change, they want to be on the winning side more perhaps.
So we're to read between the lines and assume we know what's best for the people of that country, and trust with our track record we can leave things better than they were before?
originally posted by: OccamsRazor04
originally posted by: CriticalStinker
originally posted by: OccamsRazor04
a reply to: ArMaP
Hedging those bets, they want change, they want to be on the winning side more perhaps.
So we're to read between the lines and assume we know what's best for the people of that country, and trust with our track record we can leave things better than they were before?
Why would we. Let the people decide, why would we decide?