by: the Common Constitutionalist
Last Saturday (the 9th) USA Today, or as Jay Severin calls it, Mcpaper, posted an article on the effective nationalization or government takeover of what they described as Venezuela’s equivalent to Best Buy. The chain stores name is “Daka” and has five stores located in Venezuela.
USA Today reported that the president of Venezuela, Nicholas Hussein Maduro (just kidding. I added the Hussein) ordered a military “occupation” of the stores and commanded that the company charge its customers “fair” prices.
Evidently shoppers rejoiced at the news. One customer looking for a plasma TV said, “It’s going to be so cheap”. She waited seven hours outside the Caracas store. I don’t think she was asked if she had adequate electricity to run her new TV, what with constant rolling blackouts thanks to Hugo Chavez’s nationalization of energy production and distribution.
Many believe this is just a political stunt designed to boost Maduro’s sagging poll numbers running up to their December 8 election.
As happens with such regimes that take over whole industries, shortages soon follow as it has in Venezuela. Shortages of basics such as toilet paper and milk, coupled with an inflation rate of over 54%.
USA Today reports that their currency is expected to be devalued soon after the election, which will probably then lead to hyperinflation. This will lead to much higher prices and further shortages.
Okay, so it’s Venezuela. So what? It’s not like those types of things could ever happen in America; where the government effectively sets selling prices for private companies, right? Wrongo! In fact, as is often the case, it has happened in America and history could very well repeat itself.