Price controls cause Clorox to abandon Venezuela
Clorox (NYSE:CLX), the maker of household products such as Pine Sol and Glad, announced the shutdown of its Venezuela division and is looking to sell the assets of discontinued operations.Venezuela has tried to repeal the law of supply and demand with its rigid price controls which means they will have fewer products to sell and people will be standing in line for what is still available. They are a classic example along with Cuba of the failure of socialism. It is too bad the climate marchers in New York can't go there and see first hand how the policies they want will not work.
Shares of the company were up 5.9% in the stock market today.
Clorox Venezuela said it had been selling products at a loss because of almost three years of the government-mandated price freeze on two-thirds of its products and triple-digit inflation that pushed up input expenses.