“All right boys and girls, recess is over. Settle down. Settle down, now. Jason, put the Frisbee under your seat or it is mine. Everybody settle down and start acting like 6th grade young men and young ladies.”
“Now, we have been studying economics so I am going to ask a few questions. Raise your hand if you know the answer.”
“What is the result of the government printing money at a rate faster than the growth of the economy? Yes, Kelly… That’s right; inflation. Very good.”
“What is the result of inflation? Okay Aiden, tell us. Very good, prices go up. That is correct.”
“Liam, you have a question? Why doesn’t the government just order stores to keep prices the same? Good question. Sometimes governments do that. Does anybody know what the result of governments ordering that prices not be increased while inflation is occuring?”
“Whoa! So many hands at once. Okay, Chloe, tell us what happens. That’s right, Chloe. If, during a period of inflation, prices are capped, the result will be shortages.”
“I think everyone here has a very good understanding of basic, 6th grade economics and will do fine on the test.”
Sadly, the people running Argentina don’t have the same grasp of economics as this class of 12 year olds.
BUENOS AIRES–A day after reporting the highest inflation in over a decade, Argentina’s government fined several retail chains, including France’sCarrefour SA and U.S.-based Wal-Mart Stores Inc., for failing to stock certain price- capped products.
Commerce Secretary Augusto Costa said, in a presentation to reporters, the government fined Carrefour about $ 167,000 and Wal-Mart around $77,500. The companies were allegedly found to have an incomplete stock of certain products that they agreed to sell at capped prices. Changomas, also owned by Wal-Mart, was fined about $41,000. Other local retail firms were also fined.
The fines also come a week after political activists allied with the government plastered this capital city with poster-size photos of retail executives accusing them of fueling inflation by raising prices.
The posters featured portraits of executives from the local units of Wal-Mart, Carrefour and other companies. ” These are the people who steal your salary,” the posters said. “They raised the price of everything to take your money.”
On Friday, Mr. Kicillof defended the government from critics while placing blame for inflation on businesses. “The government doesn’t raise prices,” Mr. Kicillof said. “Some businesses may occasionally be justified in raising prices, but in most cases there can be no justification for this,” he said.
Mr. Kicillof criticized economists who say that high public spending is causing prices to rise. “They say that public spending is very high and that it’s inflationary,” he said. “Gentlemen, why don’t you take your masks off and say where exactly you think the government should cut spending.”
Argentina is a basket case and it is still better run than Venezuela. Both, however, are employing the logic of the Obamanation.