WHY? WHY? WHY?
That is what your humble correspondent wants to shout at the computer screen while watching this BBC Mundo report presented by Daniel Pardo in Venezuela. Pardo actually has a good idea, namely to see how long it takes to buy eight basic home products (yes, including toilet paper) while waiting on the notoriously long lines in that country. Unfortunately he does not inform us "why" the situation is so dire even though the S-word providing the answer is proclaimed on wall posters all over that oil-rich but impovershed nation. Therefore Pardo is this week's winner of the John Chancellor Avoidance of the Economic Obvious award.
Okay, Pardo mentions that the prices are regulated by the state which is "partly" the reason why they are so scarce. And what is the economic system that has caused these prices to be regulated? Pardo does not say. After hours of standing on lines, Pardo tells us at 2:45 that:
Critics say the cause of shortages is price controls which makes reselling too profitable and producing, well, the worst business ever. But the government says scarcity is part of an economic war which hides, smuggles important products to supply the country. To tackle this the government is trying to control shoppers. The last measure was in selling fingerprint scanners in supermarkets.
Pardo ends up the day buying only three products while not mentioning the S-word that dare not speak its name. However, a hint as to the real reason for Venezuela's failed economy is below his story at the link that says, "Venezuela arrests two more retail executives."
Although Pardo shies from providing the real reason for the economic failure, Juan Carlos Hildalgo of the Cato Institute boldly spells it out:
Venezuela was once South America’s richest country, taking in immigrants from all over the world. For many years, it was also a remarkable democracy in a region where most nations were ruled by military dictatorships. Today, socialism has turned Venezuela into an authoritarian basket case that thousands try to escape every year. With millions of Venezuelans no longer willing to put up with deteriorating living conditions, and a government willing to take whatever means necessary to hold on to power, it looks like the worst is yet to come.
Pardo promised us that tomorrow he will begin his search again for the rest of the basic goods which would take all of about 5 minutes to purchase in either America or Venezuela's fellow oil rich states such as Kuwait or Saudi Arabia. It will be interesting to see if Pardo mentions you-know-what in his next report. However, if he does, I hope he doesn't expect me to shake his hand to congratulate him since I see he still hasn't purchased any papel de tush.
