Thursday, January 21, 2010

Maybe He Missed "That 70s Show"

If you're old enough, you remember the one where a U.S. President imposed price controls to tame inflation and it didn't work. Anyway, Venezuelan President Chavez devalued the currency and then closed a large retailer because prices were raised.

Somebody doesn't understand one of the purposes of the price mechanism is to ration goods. Also doesn't seem to understand that prices send signals to producers and consumers. (HT to Dr. Mark for the lead.)

I see "Kelso" playing the role of the Venezuelan President. I welcome your thoughts.

No comments: