Monday, October 17, 2016

Finally A Sensible Economic Policy In Venezuela


cannot yet say that economic policy in Venezuela is sensible but we can say that one economic policy is now, finally, sensible. The law hasn’t changed as yet but it appears that the government is allowing price controls on food to wither away. As a result there is now food in the shops in those areas where the withering is happening. This is in accord with the basics of the standard, possibly even neoliberal, economics of such things. When things cost what they cost then they are available. When prices are fixed below what they cost then things don’t exist. It’s obviously a pity that has taken years of dearth for the Bolivarian socialists to understand this most basic part of econ 101 but they do seem finally to have got there. More…

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