The aim of an argument or discussion should not be victory, but progress.
Joseph Joubert
Socialism in Venezuela: Toilet Paper Shortage Raising a Stink
Surprised? You shouldn't be. Shleifer and Vishny point out:
The single most pervasive phenomenon in socialist countries is shortage of goods. Consumer goods ranging from necessities, such as food, to luxuries, such as cars and gold, as well as many intermediate inputs, are typically in short supply. Kornai (1979) and Weitzman (1984) argue that shortages, as opposed to excess supply of goods, distinguish socialism from capitalism.(The economists suggest an explanation of corruption.)
Venezuelans are used to shortages living in Hugo Chavez' socialist paradise:
Right now, the scarcity index in Venezuela is at 21 percent — meaning that out of 100 basic goods, 21 of them aren't available on store shelves. Lines for commodities like milk, sugar, cooking oil, corn flour used to make arepas, and, yes, toilet paper, can often stretch down the block.From the AP:
After years of economic dysfunction, the country has gotten used to shortages of medicines and basic food items like milk and sugar but the scarcity of bathroom tissue has caused unusual alarm. Economists say Venezuela's shortages of some consumer products stem from price controls meant to make basic goods available to the poorest parts of society and the government's controls on foreign currency. Many factories operate at half capacity because the currency controls make it hard for them to pay for imported parts and materials. Business leaders say some companies verge on bankruptcy because they cannot extend lines of credit with foreign suppliers. Last month, Venezuela's scarcity index reached its highest level since 2009, while the 12-month inflation rate has risen to nearly 30 percent. Shoppers often spend several days looking for basic items, and stock up when they find them.It becomes even more acute now they're finally running out of Maduro election flyers to use...
If you read the articles you find out the poor don't blame the government, because when the shelves are stocked--with heavily subsidized goods, they are more affordable. And the government has the usual excuses--a vast right-wing conspiracy, hoarders, a sudden shift in demand, etc.
On an unrelated note, America's shale oil boom has displaced some of American imports of Venezuela's more-expensive-to-refine heavy oil. That's probably exacerbating Venezuela's currency woes.
State manipulation of the economy never ends well
Follow-up Odd and Ends
- Tesla v. North Carolina. I ranted about this in yesterday's post. What I hadn't seen in the sources for the story is the fact this proposed bill--to require auto companies to sell through dealerships--passed the state senate unanimously last Monday and is headed for the state house. This is particularly aimed at Tesla, the luxury electric car manufacturer which has a more direct-to-consumer business model. No doubt car dealerships like Mom and apple pie are part of Americana: sponsors of Little League teams, etc. I've noted that left-leaning websites like Slate and the Daily Beast, not exactly free market portals, are covering the story more than conservative or purported Tea Party portals; I suspect their interest is more from promoting green energy. Note that state senate Dems didn't want to fight the dealers either. This is totally corrupt and unconstitutional. Note I also oppose the $7500 boondoggle for electric cars, and we need a more equitable road utilization tax whereby so-called green vehicles pay their fair share of road maintenance costs, currently funded by fuel taxes.
- Imagine WWE Champ Kane Giving Sen. Reid (D-NV) or Sen. Schumer (D-NY) a Chokeslam....aka Glenn Jacobs, a Tennessee resident. I mentioned his critique of the Fed when discussing the stock market rise in this earlier post. Jacobs, a self-described libertarian, has also been spoken out against the Internet sales tax. Reason is suggesting Jacobs has not ruled out running against Sen. Alexander's renomination bid next spring. I would have no problem backing Jacobs.
- Texas Late Term Abortionist Identified. In an earlier post this week, noting Gosnell's agreement to accept a life sentence without appeal in lieu of the death penalty, some "new" allegations of unbelievable cruelty to born alive infants from abortion--including stabbing a baby in the soft spot on her head, stabbing a baby through his torso--even twisting off a baby's head. The doctor in question is allegedly Douglas Karpen.
Your Kids Can Be Kidnapped by Statists
Over Victimless Crimes
I personally don't approve of marijuana; I think it's a bad thing to do to one's body. (But then I also don't like body piercings, tattoos, and unnatural hair colors...)
Thugs Standing Around:
Saving the World From Eyeglass Repair Kits
And economists. Although wouldn't you love to hear an officer say just once, "Paul Krugman, you have the right to remain silent..."?
Political Abuse of Power by the IRS
Political Humor
An original:
- Swaziland has a law against witches flying higher than 150 meters on their broomsticks. (Believe me, you don't want to be pulled over by local official warlocks riding those new cruiser broomsticks.) That's one of the great things about living in the US--Nancy Pelosi can cruise at 30,000 ft., and you can even fly your Kansas home over the rainbow.
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| Courtesy of Gary Varvel and Townhall |
Bruce Springsteen & the E-Street Band, "Glory Days"
