Production quotas and prices have now been set for cooking oil, white rice, sugar, coffee, flour, margarine, pasta, cheeses and tomato sauce.
White rice, the staple for many Venezuelans, can now only be sold at a price of 2.15 bolivares (71p) per kilo. Private companies insist that production of that kilo costs 4.41 bolivares (£1.46) and that government regulations are impossible to fulfil and companies will quickly go broke.
Anyone got any suggestions for a simple economic primer to explain to the Venezuelan Government why it won\’t work?
Adam Smith would be a little long winded for them, The Road to Serfdom probably too close to the bone. Economics in One Lesson by Henry Hazlitt perhaps? Free to Choose?
Any more ideas?