Thursday, February 08, 2007

Chavez Has a Problem

Chavez is trying to help the poor, or so he says, and in the process the poor of Venezuela are worse off than ever before thanks to his generous help. Such is the sad and ever repeating story of Socialism and quasi-Socialist ideas.

In order to make food available to the poor, Mr. Chavez put price controls on food but failed to consider a very important fact. It costs more to produce the food and take it to market than the growers are allowed to sell it for, hence they lose money on every sale. (It costs $2.41 to produce and transport a pound of beef which cannot be legally sold for more than $1.82 per pound.)

As a result the producing aren 't producing and what is produced is sold on the black market. This is similar to the economic disaster that Jimmy Carter created when he tried to eliminate poverty by artificially raising wages through minimum wage increases and only succeeded in creating massive inflation and a major recession. (No wonder those two peas in a pod like each other so much.) When will people learn that government control of the economy results in economic disaster ? Perhaps they never will.

Importing more food isn't going to improve the situation much unless the government of Venezuela accepts a loss on every sale because they are not going to be able to get food from other countries as cheaply as they can produce it themselves. Eventually Chavez is either going to have to adjust prices or remove the controls altogher ( which would probably be the smart thing to do. )

Chavez condemns the hoarders and gougers, but simple reality is people will not work to produce when their work results in a loss of income instead of a gain.

Mr. Chavez. Your " reforms " will end quickly if the people of Venezeula are hungry all the time. You 're destroying your own revolution.

Hmmm . . .

Maybe that 's a good thing. It 's just too bad that people have to starve to satisfy the ego of a Marxist maniac.

Those who want the government to contol our medical industry also needs to consider this. Cheap or free medicine is useless if it isn't there.


Blogger dons_mind said...

purty slick - - works as advertised!

ps - you're right about chavez....

10:28 AM  
Blogger Little Miss Chatterbox said...

Great post!! This is the same story with socialism/communism every time. I just wish the socialists/liberals would get this through their thick skulls so people wouldn't have to suffer through their experiments that we know don't work.

1:51 PM  
Blogger ABFreedom said...

Man .... That guy is a real psycho ... price controls never work, as they damage either downstream or upstream.

Wow ... Big font ... probablly because I'm not on a M$ system... but it looks good...

9:35 PM  
Blogger Gayle said...

Shoprat, I think you need to inform ABF of your font and how it works.

Hillary is just as bad. She wants to levy taxes on Exxon, which will end up raising the prices for us. Why is it that such morons always seem to get into power? Basic math seems to be beyond them!

9:50 PM  
Blogger Crazy Politico said...

Good job on the font.

As for Chavez, it won't take long before the peasants get tired of his "reforms" that are making him rich, and them hungry.

11:11 PM  
Blogger Lone Pony said...

Comments are acting strange again. :(

11:33 AM  
Blogger Lone Pony said...

Chavez is an arrogant idiot. He doesn't realize how dull a bulb he is.

I'm actually glad to see this in the news. Maybe his people will smarten up. Maybe some of our liberals will see what's going on and do the same.

Cool font Shoprat.

11:34 AM  
Blogger ABFreedom said...

Gayle - I'm on completely different system, and had seen the font sample before. My system won't read these fonts, which is not really a problem, as it just defaults to something else.

1:19 PM  

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