Socialism Is Failing in Venezuela - PhillyBlog

geoffrobinson · #1 (**permalink**) 02-17-2007, 01:58 AM

http://www.nytimes.com/2007/02/17/wo...gewanted=print

Quote:

Faced with an accelerating inflation rate and shortages of basic foods like beef, chicken and milk, President Hugo Chávez has threatened to jail grocery store owners and nationalize their businesses if they violate the country’s expanding price controls.

Food producers and economists say the measures announced late Thursday night, which include removing three zeroes from the denomination of Venezuela’s currency, are likely to backfire and generate even more acute shortages and higher prices for consumers. Inflation climbed to an annual rate of 18.4 percent a year in January, the highest in Latin America and far above the official target of 10 to 12 percent.

Mr. Chávez, whose leftist populism remains highly popular among Venezuela’s poor and working classes, seemed unfazed by criticism of his policies. Appearing live on national television, he called for the creation of “committees of social control,” essentially groups of his political supporters whose purpose would be to report on farmers, ranchers, supermarket owners and street vendors who circumvent the state’s effort to control food prices.

MayfairMeat · #2 (**permalink**) 02-17-2007, 02:07 AM

The price controls can't remain forever, and the currency devaluation only will buy some time.

He's going to have to let the market control prices, and now that he's using the police to enforce the controls... he's going to create hyperinflation when he eventually lifts the controls.

Look for Venezuela to explode!

mja · #3 (**permalink**) 02-17-2007, 09:43 AM

It couldn't happen to a nicer guy.

mja · #4 (**permalink**) 02-17-2007, 09:45 AM

I've actually wanted to start a thread on this.

Do the Citgo commercials make anyone else sick?

You know the ones I'm talking about? The home heating oil ones. The ones that show American families shivering in the cold and which offer a 40% discount on from the kind people of Venezuela. I'm ready to actually boycott Citgo over them.

cerberus413 · #5 (**permalink**) 02-17-2007, 09:52 AM

Quote:

Originally Posted by mja

I've actually wanted to start a thread on this.

Do the Citgo commercials make anyone else sick?

You know the ones I'm talking about? The home heating oil ones. The ones that show American families shivering in the cold and which offer a 40% discount on from the kind people of Venezuela. I'm ready to actually boycott Citgo over them.

I love those....the old lady dragging the bed into the kitchen....its sick!

geoffrobinson · #6 (**permalink**) 02-17-2007, 11:30 AM

Quote:

Originally Posted by EastChestnut

The price controls can't remain forever, and the currency devaluation only will buy some time.

He's going to have to let the market control prices, and now that he's using the police to enforce the controls... he's going to create hyperinflation when he eventually lifts the controls.

Look for Venezuela to explode!

It is a mystery to me why people like Chavez still exist. It isn't like price controls and socialism haven't been tried before.

In regards to the article, hasn't Miltion Friedman pretty much showed that inflation is due to the government printing or creating too much money (relative to the growth of the economy)? That's what the Federal Reserve has been doing so successfully all these years. Following Milton Friedman's ideas. Why are we still blaming government spending regarding inflation in the article I linked to?

eldondre · #7 (**permalink**) 02-17-2007, 11:41 AM

I agree, the Federal Reserve has been successfully printing money all these years.
I read somewhere that the number of people applying for Visas from Veneuzeula is skyrocketing.

WQstur · #8 (**permalink**) 02-17-2007, 01:36 PM

Quote:

Originally Posted by mja

I'm ready to actually boycott Citgo over them.

mja · #9 (**permalink**) 02-17-2007, 01:57 PM

Next time, could you re-size the photo to be a little smaller?

Thanks.

cerberus413 · #10 (**permalink**) 02-17-2007, 01:58 PM

Quote:

Originally Posted by mja

Next time, could you re-size the photo to be a little smaller?

Thanks.

Some people are unable to do such an advanced task.