Wednesday, November 21, 2007

Price Controls=Long Lines in Venezuela; Surprised?

Not a lot to be thankful for in Chavez's Venezuela....

CARACAS, Venezuela -- The lines formed at dawn and remained long throughout the day — hundreds upon hundreds of Venezuelans waiting to buy scarce milk, chicken and sugar at state-run outdoor markets staffed by soldiers in fatigues (see photo above).

President Chavez's government is trying to cope with shortages of some foods, and the lines at state-run "Megamercal" street markets show many Venezuelans are willing to wait for hours to snap up a handful of products they seldom find in supermarkets.

The lines for basic foods at subsidized prices are paradoxical for an oil-rich nation that in many ways is a land of plenty. Shopping malls are bustling, new car sales are booming and privately owned supermarkets are stocked with American potato chips, French wines and Swiss Gruyere cheese.

Yet other foods covered by price controls — eggs, chicken — periodically are hard to find in supermarkets. Fresh milk has become a luxury, and even baby formula is scarcer nowadays.

Exhibit A: Goods not covered by price controls are plentiful.

Exhibit B: Goods covered by price controls are hard to find.

Conclusion: Kinda obvious, no?

(HT: Ben Cunningham)


At 11/21/2007 4:08 PM, Blogger Unknown said...

Hey Mark, Go Buckeyes!


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