|US gas shortages in 70s|
This is more of a demagogic measure that does not address the real problems of low generalized productivity, protectionism, mis-guided public sector investments, unreal regulations (such as the mandatory salaries paid to teachers, nurses and doctors) and the fact that we in Honduras are still a mixed economy.
In Honduras we have quasi-feudal and mercantilism markets co-existing with some somewhat competitive markets...made worse in some instances by government attempts at "liberalizing" or "privatizing" markets. So-called unions leaders and some "experts" in economics, blame the "neo-liberal" reforms as the culprit for our current economic troubles. This story is much more nuanced than that...only people with an agenda can continue pushing such simplistic story.
|©2005-2010 Douglas Smith|
So, Why is Congress doing the price control thing? because it looks good, but fully knowing it does not work. That my dear reader, is at the essence of our problems, more demagogic government actions that take us back years and which do not address the real issues. That is the issue....