Politics Magazine

On the Shortages in Venezuela

Posted on the 27 February 2015 by Calvinthedog

From the comments:

RL: “…The reason is that these fascists are deliberately under-producing these products in order to create artificial shortages as part of an economic war to bring down the government and make the economy scream…”

Sam: Don’t they have price controls? If so that’s why. What if you wanted to work for $5 an hour but the gov. only let you do so for $3 dollars an hour. Would you work? If someone has a gallon of oil worth $2 and the government says they can only get $1 then what happens. No one sells oil.

They have price controls because they have wild inflation of 40%. The businesses can make bank even with the price controls. They did in the past. If they take off the price controls, inflation will go out of control. You can’t have it both ways.

They aren’t being forced to sell at a loss. It’s just that they can get more money for their stuff in Colombia and also they are committed to an economic war project. For years, they produced and imported all the products that Venezuela needed, and there were price controls for much of that time.

Capitalism will always, when not constrained by monopolies, give the people the most for the least.

They are not doing it in Venezuela. They did this exact same thing in Chile. The underproduction only started just recently and had nothing to do with the onset of the price controls.

The haters of the Venezuelan Revolution have been screaming about inflation forever. They still scream about it. Well the government put in some price controls as a means to try to slow down the inflation. Now the haters are screaming about the price controls and the inflation. You can’t win with these people.

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