From the left-leaning USA Today.
Thousands of Venezuelans lined up outside the country’s equivalent of Best Buy, a chain of electronics stores known as Daka, hoping for a bargain after the socialist government forced the company to charge customers “fair” prices.
President Nicolás Maduro ordered a military “occupation” of the company’s five stores as he continues the government’s crackdown on an “economic war” it says is being waged against the country, with the help of Washington.
Members of Venezuela’s National Guard, some of whom carried assault rifles, kept order at the stores as bargain hunters rushed to get inside.
[…]Images circulating online as well as reports by local media appeared to show one Daka store in the country’s central city of Valencia being looted.
“I have no love for this government,” said Gabriela Campo, 33, a businesswoman, hoping to take home a cut-price television and fridge. “They’re doing this for nothing but political reasons, in time for December’s elections.”
Maduro faces municipal elections on Dec. 8. His popularity has dropped significantly in recent months, with shortages of basic items such as chicken, milk and toilet paper as well as soaring inflation, at 54.3% over the past 12 months.
Economists are expecting a devaluation soon after the election, likely leading to even higher inflation.
This will surely encourage more businesses to come to Venezuela to create jobs, and compete with other businesses in order to lower prices and increase quality for consumers. Oh wait, no it won’t. It’s just going to causes businesses to scale back, expand in other countries, and go out of business entirely – taking jobs with them.
Earlier, Venezuela nationalized some oil drilling plants, as well:
Petroleos de Venezuela SA, the state oil company, seized about $1 million worth of equipment from Superior Energy Services Inc. (SPN:US), the Houston-based company said.
PDVSA expropriated two hydraulic units that were idled after the Caracas-based company missed payments, Greg Rosenstein, head of corporate development, said by phone from New Orleans. The units operated in eastern Venezuela’s Anzoategui state, Associated Press reported Nov. 1.
[…]Under President Hugo Chavez, who died of cancer in March, Venezuela initiated a nationalization process, seizing assets from companies including Exxon Mobil Corp. (XOM:US) and ConocoPhillips. (COP:US)
Schlumberger Ltd. (SLB:US), the world’s largest oil-services company, said in March it would reduce work in Venezuela because of mounting overdue payments from PDVSA. Schlumberger subsequently reached an agreement and announced on May 24 that it would provide a $1 billion rolling credit for a joint venture in Venezuela.
That will encourage oil companies to come to Venezuela and pay royalties to the government, and give jobs to more Venezuelans. Oh wait, no it won’t. It’s just going to cause companies to scale back their investments, expand in other countries, stop hiring, lay off more people, and pull out of Venezuela. I’m sorry but this is standard leftist economic policy.
Remember the last time that Venezuela seized privately-owned oil companies? They eventually had a nice explosion at the oil drilling facility, because the government doesn’t know how to run a business better than the people who created that business. You can see it today here, as Obama nationalizes the health care industry and tries to substitute his own web site. He thinks he knows how to create web sites. The man who has never run so much as a lemonade stand in his entire life, and is an authority on how to read a teleprompter and play golf. You do NOT put people like this is in charge of the economy.
The strange thing is that the economies of Chile embraced free market capitalism, free trade, private property, and the rule of law. Unlike Venezuela and Argentina, they are doing vastly better economically. Look at that chart, which I got from libertarian economist Dan Mitchell. You can’t refute that, because economics is real. No one can hide from the facts.
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