This ought to solve the problem.
The whole place is economically dysfunctional. This is what happens when prices are restricted by the government and the totalitarians refuse to let in the light of the market. It’s really that simple fundamentally.
It should be noted also that the Indian government pulled a similar thing a couple of weeks ago and also threw its economy into a spin.
The War on Cash is on.
When the army is distributing medical supplies in a country it’s pretty safe to say that things are not going well. Venezuela is a tragedy.
Hyperinflation, it happens.
Socialism is truly a wonderful thing. So fair.
Socialism fails sooner or later. The key factor is the degree an economy is infected with socialism. A moderate amount of socialism (that is anti-price government intervention) means a moderate collapse eventually. Total socialism means total collapse of the economy eventually.
There are 2 very important variables in this simple equation however (there are of course more than 2, but these are the biggies) and that is how much fear a regime can induce in the population, and how far a regime is willing to go to stay in power.
Funny, the statists always warn that without big intrusive government societies go haywire. But we have seen over and over and over that this is simply not true. In fact where government has a light hand and the rule of law upheld the typical result is prosperity.
However what we also see over and over and over is that countries that embrace big government have a tendency over time to turn into hellholes. The Soviet Union,
He’s still thick around the middle.
I heave heard that Maduro has a political tin ear, a real problem for a socialist/populist head of state. This is a pretty good example of such a malady.
He should have just told the people to “eat cake.”
Guess who doesn’t like Venezuela’s socialist (and deeply crony) government?
If there is one thing that is ubiquitous in socialist countries it is lines. Lines for food. Lines for health care. Lines for transportation. Lots of lines. But the Maduro government in Venezuela, embarrassed by all the photos and videos of people queuing up to fill their stomachs has figured out a solution.
Just ban lines.
As we have said many times, socialism and crony capitalism are sisters and good friends. Centralization is a key part of socialism and absolutely necessary for crony capitalism. The political class lives well, and the rest, well, they are the rest – particularly in Latin America.
Deny the marketplace free prices and shortages and general economic dysfunction are the inevitable result. Deny prices completely and sooner or later one will have complete collapse.
This can be offset for a time with terror, as we saw and see in the Soviet Union, North Korea, and in Cuba. But the end is the same. The questions now in Venezuela are how far is Maduro willing to go and how far CAN he go?
Socialism rules! Wonder if the sons and daughters of the political class will be going out into the fields?
When prices aren’t free to move shortages result. And people become hungry.
Opening the border is the last thing President Maduro and the Chavistas wanted to do of course. By opening to Columbia and letting people get food it highlights the massive failure the socialist regime has induced. But the Chavistas recognize that keeping hungry people penned inside the country would probably be an even worse option for them than letting them out. One thing that all totalitarian regimes understand is that bread is key to pacification of the population.
Or $75 for 6.
Being a charitable person I think I should start a project which will bring chickens to this part of Latin America. What’s that you say? Chickens are all over Latin America, everywhere one looks in the countryside? Then why do eggs cost more than $10 apiece in Venezuela? Oh, that’s right, the government is a socialist government that doesn’t understand the simplest of market economics. So that makes sense.