Venezuela sends in troops to force electronics chain to charge 'fair' prices, looting ensues

[Cali_Democrat]

CARACAS, Venezuela — In his fight against the economic "war" that he says the political opposition, in collusion with the United States, is waging against Venezuela, President Nicolas Maduro ordered the military occupation of a chain of electronics stores over the weekend, forcing the company to charge "fair" prices.

The order against Daka, which is basically Venezuela's Best Buy, sparked chaos at the store's five outlets.

Thousands lined up outside the chain's stores hoping to buy cut-price plasma televisions or appliances such as fridges, washing machines and sewing machines.

Pictures shared on social media as well as local newspaper reports said that one store in the country's central city of Valencia faced looting. Some critics suggested that the entire operation was a form of looting organized by the government, just in time for municipal elections in December.

http://worldnews.nbcnews.com/_news/2013/11/11/21399541-venezuela-sends-in-troops-to-force-electronics-chain-to-charge-fair-prices

[Throd]

1. Why doesn't Maduro open his own store, charge less for products, and drive Daka out of business?

[HooptieWagon]

2. In the past, pre- Chavez....

Venezuela had really high import duties. Something like 40%. I don't know if that is still the case, but if so that would be a major factor in high prices of consumer goods.

[hack89]

3. Inflation and a shortage of dollars are the reason for high prices

They are discovering that the basic rules of capitalism still apply to them.

[HooptieWagon]

4. Their own money policy was a reason for dollar shortage.

On a personel level (ignoring oil business), the govt limited how much money Venezuelans could take when travelling abroad. Thus, Venezuelans were unlikely to bring dollars home, or to bank there. A Venezuelan friend of mine used to conduct small-scale sports clinics when he visited the US, in order to help cover his expenses. He usually came out a bit ahead. I suggested and aided him in setting up a bank account in the US to deposit his excess funds in. By the time he moved to the US permanently he had enough money saved to make it a smooth transition. If Venezuelan banking situation and currency laws had been better, he would have simply saved his money there.