You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Reply #31: Its a basic rule of economics [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
creeksneakers2 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-01-09 06:34 AM
Response to Reply #18
31. Its a basic rule of economics
that price caps cause at least some shortages, unless the price cap is higher than any price being asked. If I set the price of milk at $6 a gallon, all those people who pay over $6 a gallon for milk, like those in super expensive geographical areas, will go without milk.

If the price caps were taken off rice, the Venezuelan plants would go back to full operational capacity. Taking over the factories is just one more step down the road to Mugabe economics.
Printer Friendly | Permalink |  | Top
  -Chavez Seizes Venezuelan Rice Plants IndianaGreen  Feb-28-09 11:38 PM   #0 
  - Holy dictatorship!  liberalmuse   Feb-28-09 11:45 PM   #1 
  - "This government is here to protect the people, not the bourgeoisie or the rich."  IndianaGreen   Mar-01-09 12:01 AM   #3 
  - Yeah I'm sure seizing the means of production is on Obama's to-do list.  Lost in CT   Mar-01-09 12:17 AM   #6 
  - Nationalizing the energy sector should be top priority  IndianaGreen   Mar-01-09 12:26 AM   #7 
     - But I don't think the Saudis will tolerate the thought of Uncle Sam owning their land, right?  Doctor Cynic   Mar-01-09 01:52 AM   #17 
     - Uncle Sam gets oil from Canada and Mexico mostly. and of course, from Hugo Co  ohio2007   Mar-01-09 06:57 AM   #37 
     - Nationalize the health insurance industry too.  Chemical Bill   Mar-02-09 09:32 AM   #144 
  - It doesn't sound like a good prescription  creeksneakers2   Mar-01-09 06:26 AM   #30 
  - Precisely. I can't even begin to imagine why inflation is 31%.  originalpckelly   Mar-01-09 10:00 AM   #65 
     - just lower the price of rice by 32%....problem solved...everybody wins  ohio2007   Mar-01-09 10:34 AM   #81 
     - According to the OP, the rice plant was working at 50% capacity.  Wilms   Mar-01-09 10:43 AM   #84 
     - They built their economy on the astronomical price of oil.  TheWraith   Mar-01-09 12:13 PM   #102 
  - I've always enjoyed sentences like that.  Igel   Mar-01-09 02:30 PM   #118 
  - A rice industry that cuts production to jack up prices in times of recession/depression  McCamy Taylor   Mar-01-09 01:07 AM   #11 
  - The food today is poisoned GMO shit  Grinchie   Mar-01-09 03:27 AM   #22 
  - Sounds like American oil corps and their shutting down of refineries,  acmavm   Mar-01-09 07:30 AM   #42 
  - EXACTLY!  fascisthunter   Mar-01-09 08:58 AM   #51 
  - self-delete  fascisthunter   Mar-01-09 08:59 AM   #52 
  - In US terms, the banks that refuse to refinance loans to people in trouble  IndianaGreen   Mar-01-09 12:32 PM   #108 
     - Yes, and not used nearly often enough.  mbperrin   Mar-01-09 12:34 PM   #109 
     - let me know where you plan on shooting the first capitalist  backwoodsbob   Mar-01-09 01:05 PM   #114 
        - When we Reds take over after capitalism collapses  IndianaGreen   Mar-01-09 01:15 PM   #116 
        - LOL, keyboard revolutionaries  anigbrowl   Mar-02-09 04:27 PM   #149 
        - Well, my grandfather was beat to death by some employees of the  mbperrin   Mar-02-09 02:43 PM   #147 
  - He sure did, but with all the Coup attempts and all  Grinchie   Mar-01-09 03:25 AM   #21 
  - did you read the story?  acsmith   Mar-01-09 05:11 AM   #29 
  - The Hugo Haters don't read stories. Like Pavlov's dogs, they hear/read the name "Chavez" and get...  Mika   Mar-01-09 03:35 PM   #123 
  - Promises that he made good on.  bitchkitty   Mar-01-09 06:56 AM   #36 
  - Hope  lsewpershad   Mar-01-09 03:25 PM   #122 
  - Good for him! The Rice Cos. hoard it and/or sell it on the black market  leftstreet   Feb-28-09 11:47 PM   #2 
  - Sounds like the milk farmer cartels smuggling their products over the border  ohio2007   Mar-01-09 07:16 AM   #39 
  - What could possibly go wrong?  Doctor Cynic   Mar-01-09 12:11 AM   #4 
  - There's no telling.  ronnie624   Mar-01-09 12:46 AM   #8 
  - And get replaced with...what?  Doctor Cynic   Mar-01-09 01:17 AM   #13 
  - I don't believe you are as much in the know as you pretend.  ronnie624   Mar-01-09 01:37 AM   #14 
  - I don't know who's ignorant here...  Doctor Cynic   Mar-01-09 01:51 AM   #16 
  - "price controls do not work...  ronnie624   Mar-01-09 02:10 AM   #18 
  - Ask Richard Nixon...  Doctor Cynic   Mar-01-09 02:44 AM   #19 
  - Its a basic rule of economics  creeksneakers2   Mar-01-09 06:34 AM   #31 
  - You and the other poster seem to be simply reciting truisms.  ronnie624   Mar-01-09 10:48 AM   #88 
     - Nationalization  creeksneakers2   Mar-01-09 11:42 AM   #98 
        - If food companies are smuggling food out of the country,  ronnie624   Mar-01-09 12:23 PM   #104 
           - Some of these people still contend Chile developed a superior economy,  Judi Lynn   Mar-01-09 12:31 PM   #107 
              - I thought about that as well.  ronnie624   Mar-01-09 12:43 PM   #111 
  - You a fan of Richard Nixon?  WriteDown   Mar-01-09 09:55 AM   #59 
     - Hugo ignores the advice of LBJ advisor's  ohio2007   Mar-01-09 10:44 AM   #85 
        - Your subject line literally made me laugh out loud.  WriteDown   Mar-01-09 10:54 AM   #89 
        - That's Bloomberg's perspective.  ronnie624   Mar-01-09 11:27 AM   #97 
        - So what is your perspective ? You don't find a Johnson era advisor's formula "up to date" with the  ohio2007   Mar-01-09 03:12 PM   #120 
           - Um, yeah. Alrighty then, ohio2007.  ronnie624   Mar-01-09 11:12 PM   #127 
              - A tour-de-force exhibition of the debater's art n/t  Psephos   Mar-02-09 12:17 AM   #131 
                 - I suppose I'll just have to take your word on the matter. n/t  ronnie624   Mar-02-09 12:54 AM   #136 
        - Bloomberg--right. Why not ask Venezuelans about their "misery"?  Peace Patriot   Mar-02-09 12:27 AM   #132 
  - Doctor Cynic sound like Ben Bernanke trying to divert the message to someone else.  Grinchie   Mar-01-09 03:36 AM   #24 
  - I'm diverting the message?  Doctor Cynic   Mar-01-09 04:25 AM   #25 
     - And what laws of economics would that be.  zeemike   Mar-01-09 04:48 AM   #27 
        - Not if inflation causes the price of production  creeksneakers2   Mar-01-09 06:39 AM   #32 
           - And just what is it that causes inflation.  zeemike   Mar-01-09 07:14 AM   #38 
              - Can't be the price of oil But Hugo was counting on a $200 bbl surge to the revenue pile  ohio2007   Mar-01-09 08:11 AM   #44 
                 - Somehow I doubt that  zeemike   Mar-01-09 08:19 AM   #47 
                    - So who controls the oil price and why did "they" burst the bubble?  ohio2007   Mar-01-09 10:03 AM   # 
                       - An interesting comparison.  zeemike   Mar-01-09 10:31 AM   #80 
                       - Chavez put price controls on food BUT did not control the prices on items farmers need to produce  ohio2007   Mar-01-09 11:08 AM   #93 
                          - I think the sources you quote are telling  zeemike   Mar-01-09 01:41 PM   #117 
                             - These "laws of economics"  ronnie624   Mar-02-09 12:37 AM   #133 
                                - All valid points that I had not thought to make  zeemike   Mar-02-09 04:02 AM   #141 
                       - With your first article as 'evidence',  ronnie624   Mar-02-09 11:49 AM   #145 
  - "...collectivizing agriculture ends rather poorly." You know what kind of agriculture  Peace Patriot   Mar-01-09 11:49 PM   #128 
  - Hoarding food until there is a crisis, then increasing prices has been a recurrent practise  Judi Lynn   Mar-01-09 06:45 AM   #33 
  - From your article:  ronnie624   Mar-01-09 09:29 AM   #55 
     - People are even smuggling gasoline, as well as food, to Colombia for big profits:  Judi Lynn   Mar-01-09 09:46 AM   #57 
  - Reference to food hoarding in a speech given in England in 2006:  Judi Lynn   Mar-01-09 10:56 AM   #90 
  - There is a worldwide 50% overproduction of food  Grinchie   Mar-01-09 03:29 AM   #23 
  - but they also say peak population is the result of food shortages  ohio2007   Mar-01-09 07:23 AM   #41 
  - You're an executive of a Venezuelan rice company?  harmonicon   Mar-01-09 10:05 AM   #71 
     - Well, at least regulation.  Igel   Mar-01-09 02:59 PM   #119 
  - The Rice Wreckers of Venezuela fear Chavez!  AngryAmish   Mar-01-09 08:21 AM   #48 
  - "What could possibly go wrong?"...CIA ?  Swagman   Mar-01-09 02:54 AM   #20 
  - Venezuela grows rice????  Lost in CT   Mar-01-09 12:14 AM   #5 
  - Actually, they have partners in central and south america that do  ohio2007   Mar-01-09 08:24 AM   #49 
  - Sounds reasonable to me.  Proletariatprincess   Mar-01-09 01:02 AM   #9 
  - So Venezuela goes from rice farmerS to rice farmeR  Dreamer Tatum   Mar-01-09 01:05 AM   #10 
  - Don't be so unsure -  bitchkitty   Mar-01-09 07:54 AM   #43 
  - UN Food & Agricultural Org. "Says Venezuela Prepared for World Food Crisis"  Judi Lynn   Mar-01-09 10:20 AM   #77 
  - Oddly, that's an issue that the article seems to skirt.  Igel   Mar-01-09 03:15 PM   #121 
  - I'm confused  davidinalameda   Mar-01-09 01:08 AM   #12 
  - If the plant was operating at 50% capacity, seems the company is obliged to bring more workers back  ohio2007   Mar-01-09 08:17 AM   #46 
  - Love of the state!  tonycinla   Mar-01-09 10:47 AM   #86 
  - deleted  ronnie624   Mar-01-09 01:45 AM   #15 
  - Sweet.  Eryemil   Mar-01-09 04:33 AM   #26 
  - Don't worry they have back up plans I am sure.  zeemike   Mar-01-09 04:54 AM   #28 
  - It's those damned "white" rice farmers cabals at it again  ohio2007   Mar-01-09 06:46 AM   #34 
  - Holy humanitarian!  bitchkitty   Mar-01-09 06:50 AM   #35 
  - Last year the Venezuelan military caught food producers smuggling their merchandise  Judi Lynn   Mar-01-09 07:17 AM   #40 
     - I want to see revolution, not violent but Bolivarian  bitchkitty   Mar-01-09 01:11 PM   #115 
  - All food production should be nationalized; everywhere.  ileus   Mar-01-09 08:13 AM   #45 
  - Yeah that is a recipe for success....  Lost in CT   Mar-01-09 09:56 AM   #60 
  - I'm sure family farmers would be happy with that.  WriteDown   Mar-01-09 09:57 AM   #61 
  - I know, it worked so well for the Soviet Union.  originalpckelly   Mar-01-09 10:03 AM   #67 
  - We need Chavez to run America for a decade or so...  antimatter98   Mar-01-09 08:56 AM   #50 
  - He already has....  WriteDown   Mar-01-09 09:57 AM   #63 
  - No thanks  creeksneakers2   Mar-01-09 10:03 AM   #68 
  - How high are you? 31% inflation is something that cripples an economy...  originalpckelly   Mar-01-09 10:04 AM   #70 
     - Populist "economics" leads to inflation.  Odin2005   Mar-01-09 11:08 AM   #94 
     - if you knew their economic history  iamthebandfanman   Mar-01-09 11:57 PM   #129 
  - What a Humanitarian. Putting People before the Profits of the Wealthy  fascisthunter   Mar-01-09 09:00 AM   #53 
  - Reminds me of a child....  WriteDown   Mar-01-09 10:00 AM   #64 
  - Smart answer...  originalpckelly   Mar-01-09 10:01 AM   #66 
     - Market fundamentalism as bad as anything the religionists have to offer.  JackRiddler   Mar-01-09 12:20 PM   #103 
        - No, the underlying physics is the same.  originalpckelly   Mar-01-09 12:30 PM   #106 
           - Feudal economy existed for longer than capitalism so far...  JackRiddler   Mar-01-09 12:34 PM   #110 
              - Very true, and that's why the others ultimately failed.  originalpckelly   Mar-02-09 12:30 PM   #146 
  - I Love Irritating Fascists  fascisthunter   Mar-01-09 11:06 AM   #92 
     - Gotta be employees doing their job. Real people wouldn't assume  Judi Lynn   Mar-01-09 11:49 AM   #99 
        - They Stay on Message and Never Concede to any facts you offer  fascisthunter   Mar-01-09 11:53 AM   #100 
        - I assume progressives  creeksneakers2   Mar-01-09 12:45 PM   #112 
           - Oh? & how long did it take for the people to be impoverished even worse than before?  JackRiddler   Mar-02-09 04:05 PM   #148 
  - He's price-fixing to help the people. Stop twisting his words. (you know  bluesmail   Mar-01-09 09:26 AM   #54 
  - rice production at gun point, yeah that's what we need n/t  Bacchus39   Mar-01-09 09:36 AM   #56 
  - mmmmmmmmmmmmm, rice  Sultana   Mar-01-09 09:54 AM   #58 
  - Why is inflation rising in Venezuela? Inflation doesn't just rise all by itself.  originalpckelly   Mar-01-09 09:57 AM   #62 
  - Well, that's what you get with price controls...  MellowDem   Mar-01-09 10:04 AM   #69 
  - Brilliant. You should have taken the time to inform yourself on Venezuelan history.  Judi Lynn   Mar-01-09 10:11 AM   #73 
     - Do you mean the food hoarding started in '99 or Chavez's Presidency?  originalpckelly   Mar-01-09 10:15 AM   #75 
        - It has been going on long BEFORE he was inaugurated in 1999. n/t  Judi Lynn   Mar-01-09 10:38 AM   #83 
  - (Hugo:) Venezuela land seizures will continue ( how many years removed is this article ? 15 yrs ? )  ohio2007   Mar-01-09 10:10 AM   #72 
  - This article has no relevance. And Chavez is not Mugabe. That is ridiculous.  Peace Patriot   Mar-02-09 01:32 AM   #138 
  - why aren't the rice producers working at full capacity?  paulk   Mar-01-09 10:12 AM   #74 
  - What's ironic here, is that he has railed against globalism...  originalpckelly   Mar-01-09 10:18 AM   #76 
     - You should give the benefit of your views to the U.N.  Judi Lynn   Mar-01-09 10:21 AM   #78 
     - They may grow enough, but that only serves to prove my point.  originalpckelly   Mar-01-09 10:37 AM   #82 
     - Hugo is showing himself to be the typical populist idiot who can't run an economy properly. n/t.  Odin2005   Mar-01-09 11:10 AM   #95 
        - Chavez has overseen an economy with a nearly 10% growth rate over five years,  Peace Patriot   Mar-02-09 01:13 AM   #137 
  - Venezuelan industries hoard food to panic the market  RedCloud   Mar-01-09 10:29 AM   #79 
  - Thank you so much for your post. I went to check on the date for Tienanmen Square's massacre,  Judi Lynn   Mar-01-09 10:47 AM   #87 
     - You're most welcome Judi Lynn  RedCloud   Mar-02-09 09:14 AM   #143 
  - Gee, price controls, what did he expect?  Odin2005   Mar-01-09 11:00 AM   #91 
  - See Malaise's comment in the G.D. thread on this subject:  Judi Lynn   Mar-01-09 11:25 AM   #96 
  - Whole lot of stupid in this thread  DS1   Mar-01-09 12:02 PM   #101 
  - Inflation in Venezuela has been lower under Chavez than in the previous 20 years.  JackRiddler   Mar-01-09 12:27 PM   #105 
  - Thanks for your post. Was quick to save it to files for future reference, absolutely.  Judi Lynn   Mar-01-09 12:45 PM   #113 
  - Thanks for the chart, JackRiddler! It won't shut the know-nothings's up, because...  Peace Patriot   Mar-02-09 02:22 AM   #140 
  - Good.  Zhade   Mar-01-09 07:31 PM   #124 
  - since our wall street casinos....  unkachuck   Mar-01-09 08:16 PM   #125 
  - So much ignorance in this thread.  PM Martin   Mar-01-09 09:53 PM   #126 
  - ...  Moochy   Mar-02-09 12:44 AM   #135 
  - Those who post scattergun thread criticism without being specific,...  clixtox   Mar-02-09 01:42 AM   #139 
     - Ain't it the truth  zeemike   Mar-02-09 05:30 AM   #142 
  - U.N. Food and Ag Group says Venezuela Prepared for World Food Crisis  Peace Patriot   Mar-02-09 12:05 AM   #130 
  - Venezuela Solid Despite Global Crisis, Says Finance Minister  Peace Patriot   Mar-02-09 12:44 AM   #134 

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC