Command economy fails in Venezuela

AP/Houston Chronicle:

Chavez cracks down on rice producers

El Loco has ordered troops to force rice processing at prices that do not produce a profit. This is one of the problems with the command economy. The market will not always obey the command. Obama would be wise to watch this failure of liberal fascism.

The BBC reports the troops have been sent to the processing plants.

Venezuelan President Hugo Chavez has ordered the army to take control of all rice processing plants in the country.

Mr Chavez accused some firms of overcharging by refusing to produce rice at prices set by the government.

He warned that some companies could be nationalised if they tried to interfere with supplies of the grain.

Mr Chavez - who has nationalised large swathes of Venezuela's economy - did not say how long the government intervention would last.

Major rice processors in the country include the US-owned giant Cargill and Venezuela's main food company, Polar.

Last year, Venezuela seized control of plants and offices belonging to Mexican cement giant Cemex.

...

This is what you get with control freak governments. The freedom to chose is lost by both buyers and sellers.

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