Blog
Venezuela – fingerprinting as a rationing device.
26th August 2014
Venezuela’s socialist government took a different approach, implementing price controls to lower prices. Standard economic theory would predict that this would lead to shortages, which is exactly what has happened. A link to the food shortage problem can be found here.
As the article says, the blame for the shortages is placed on those panic buying and hoarding food (and the CIA also get their fair share of blame as well). Therefore the response is to introduce a system of biometric food rationing where information will be kept on each individuals purchases and prevent them from buying too much.
Something needs to be done – Venezuela is currently top of the “Misery Index” – a combination of inflation rate and unemployment rate. However, it seems unlikely that they will resort to some orthodox economic theory and let price act as a rationing (and signaling) function.
More information on the new system can be found here.
You might also like
Information failure in the NHS
23rd January 2014

Scarcity and Abundance
25th September 2013

Health Economics: Prescriptions Triple in 15 Years
2nd April 2011
Pricing in Venezuela - Fair price versus the capitalist price!
9th November 2010

NHS needs extra cash as funding crisis grows
25th October 2014
Price Mechanism (Revision Presentation)
Teaching PowerPoints
The Problem of Scarcity
Study Notes
Scarcity and Choices
Study Notes