Attention Economy


Monday, April 20, 2015

Price Controls in Venezuela


“The government regulates the price of these goods. It doesn't subsidise them - it tells the producer what they can charge. That might just about make sense in a buoyant economy but with inflation running at over sixty percent and the value of the currency plummeting, it appears producers are not only failing to make a profit but are operating at a loss. Similarly companies who export food to Venezuela have given up waiting to be paid by a government that's down on its luck and are now selling their goods elsewhere.”