Venezuelan Military Seizes Major Retail Chain
Robert Wenzel
Now this is a final collapse type phase. You have high price inflation, followed by price controls which make the economy worse, followed be even more government interventions that cause even more distortions and suffocations of the economy.
USA Today reports:
Thousands of Venezuelans lined up outside the country's equivalent of Best Buy, a chain of electronics stores known as Daka, hoping for a bargain after the socialist government forced the company to charge customers "fair" prices.
President Nicolás Maduro ordered a military "occupation" of the company's five stores as he continues the government's crackdown on an "economic war" it says is being waged against the country[...]
Members of Venezuela's National Guard, some of whom carried assault rifles, kept order at the stores as bargain hunters rushed to get inside.[...]
"I have no love for this government," said Gabriela Campo, 33, a businesswoman, hoping to take home a cut-price television and fridge. "They're doing this for nothing but political reasons, in time for December's elections."
Maduro faces municipal elections on Dec. 8. His popularity has dropped significantly in recent months, with shortages of basic items such as chicken, milk and toilet paper as well as soaring inflation, at 54.3% over the past 12 months[...]
The president, who took over from Hugo Chávez in April 2013, appeared on state television Friday calling for the "occupation" of the chain, which employs some 500 staff.
"This is for the good of the nation," Maduro said. "Leave nothing on the shelves, nothing in the warehouses … Let nothing remain in stock!"
Of course, who is going to produce goods and restock shelves, when goods are being forced at gun point to be given away below cost?
Link:
http://www.economicpolicyjournal.com/2013/11/venezuelan-military-seizes-major-retail.html
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