This isn\’t going to work, is it?

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?

10 thoughts on “This isn\’t going to work, is it?”

  1. Watching each ‘chosen’ leader trying to implement his brand of socialism is akin to watching a madman trying to cure his headache by banging his head against a wall.

    To answer your question: Economics For Real People – Gene Callahan

  2. Not exactly Economics 101 but since Chávez is all about slavish adherence to ideology in the face of economic reality, we think the two volumes above are far more appropriate.

  3. “The Guide to the Perfect Latin American Idiot”

    That books looks like a gem – will have to add to my reading list. Noted that the only 1 star review on Amazon was from someone who clearly has been swayed by the communist mysticism.

  4. They don’t even have to read, just an old newsclip showing the ‘overabundance’ of goods in the USSR’s marketplaces.

Leave a Reply

Your email address will not be published. Required fields are marked *