Persisting in some economic "policies" that only result in inflation and shortages is not just a coincidence. Some people close to Nicolás Maduro are benefiting from the price freeze
The economic measures announced by Nicolás Maduro on Thursday night are only aimed at favoring the different mafia organizations controlling various "business" being conducted in Venezuela. One of them are food importers and the other the so-called "bachaqueros," or resellers of foodstuff and other consumer staples at higher prices than those regulated by the Government or previously sold by retailers. Both of them were conceived under the "socialism of the 21st century."
Controlling prices is the same recipe they have been using for years without any positive results, because Venezuela’s "socialist" inflation is the highest in the world. It stood at 33.7% in August of this year alone, according to data collected by the Finance Committee of the Parliament (aka National Assembly).
Price controls have resulted in shortages. Such shortages are due to the fact that domestic producers have decided to go out of business for not being cost-effective. Those still in business are struggling to survive trying to meet domestic demand, since they cannot make new investments. This increases the dependency on imports of what the country needs, while shortages is the best way to foster "bachaqueo" activities.
At first we thought that Maduro took such measures because of his ideological formation, but now we are convinced that he did to favor the mafias that are helping him cling to power and who profit from this kind of business. That is the explanation in light of the evidence that his economic "policies" only result in shortages and inflation. Persisting in this error is no coincidence.