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People, forget about the gas being cheap on Venezuela even still after this arise. That country is with serious problems for years. For instance, citizens need
by edpichler 11y ago
People, forget about the gas being cheap on Venezuela even still after this arise.
That country is with serious problems for years. For instance, citizens need to be on slow and humiliating lines to buy food, that is limited by government. Recently, government also said that the prices of milk increased because people are drinking it too much.
- MCRed 11y agoFor those olde enough to remember, this is very much what things were like in the USSR. I remember not 10 years ago a liberal friend of mine (With a Masters in economics!) supporting Chavez and complaining about Obama not supporting Venezuela. This is not a liberal paradise.
- edpichler 11y agoAre you following the tidings and the changes happening fast on Argentina? It's amazing.
- ativzzz 11y agoDo you have a link to an article?
- edpichler 11y agoI have this text, that could give you an idea, but just in Portuguese, sorry: - http://bit.ly/macript http://bit.ly/macript and - https://twitter.com/bradpickler/status/700363764261130241 https://twitter.com/bradpickler/status/700363764261130241
- GFK_of_xmaspast 11y ago> Recently, government also said that the prices of milk increased because people are drinking it too much. Isn't that literally how supply-and-demand is supposed to work.
- ancap 11y agoNot exactly. In this case it is the government which is mandating the prices. While market prices would naturally rise due to increased demand, the statement "because people are drinking it too much" does not necessarily denote increased demand. Market prices are one of the most essential aspects of a healthy economy. It is the lack of market prices which right off the bat dooms any form of socialism to failure. Any time you see large scale, perpetual shortages of any kind you can know there is some form of price fixing or market manipulation going on by the government.
- beambot 11y agoYou covered demand... But what about supply? You can have perpetual shortages on the supply side that keep prices up. The entire luxury goods market relies on this, as an example. I'm afraid I'm not confident in your analysis; seems to oversimplified.
- ancap 11y ago>You can have perpetual shortages on the supply side that keep prices up. The entire luxury goods market relies on this, as an example. You'll have to go into more depth on your example. I'm not sure to what you're referring. >But what about supply? Reread the second paragraph in my comment. Generally, when the term "shortages" is used, it refers to supply. As for the "perpetual shortages on the supply side that keep prices up", I'm not sure you are using the term "shortage" as it is understood in economics. Just because something is not available at a price I prefer does not connote a shortage (as defined in economics). Otherwise the fact that I cannot buy a Lotus car for $10k would mean there is a shortage. However, if the government introduced price controls on Lotus cars so they could only be sold for $10k, you would definitely have a shortage because more people would want them (demand) at that price point but no one would be willing to sell them (supply).
- phonon 11y agoLook up Artificial Scarcity.