Chavez Hastens Venezuelan Descent Into Pure Totalitarianism
I’m not sure how you could call this anything else:
Venezuelan President Hugo Chavez said that businesses have no reason to raise prices following the devaluation of the bolivar and that the government will seize any entity that boosts its prices.
Chavez said he’ll create an anti-speculation committee to monitor prices after private businesses said that prices would double and consumers rushed to buy household appliances and televisions. The government is the only authority able to dictate price increases, he said.
“The bourgeois are already talking about how all prices are going to double and they’re closing their businesses to raise prices,” Chavez said in comments on state television during his weekly “Alo Presidente” program. “People, don’t let them rob you, denounce it, and I’m capable of taking over that business.”
Not only is he “capable” of taking the business over, but he’s turning out the army to monitor all of this. And he’s promised to “transfer the ownership” of any business raising prices “to the workers”. We’ve all seen how well those sorts of takeovers have worked out in the past.
To review, he’s devalued the bolivar which had been fixed at 2.15 to the U.S. dollar since 2005, to 4.3 to the dollar. He then declared that businesses – which own stock under the old currency value and which will have to restock using the devalued currency – must keep their prices at the old price and let consumers buy that stock with the devalued currency or lose their business. A unilateral decision on his part and the refusal, again unilaterally, to allow those who own the goods they’re selling to react to his decision.
Where I come from, that’s called totalitarianism.