Centerfield

Hugo Goes to Economics Camp

Coffee shortage brews trouble in Venezuela

National Guard troops have so far seized about 330 tons of coffee stored by wholesalers in Yaguara and Guacara, near the capital of Caracas, and more raids were planned, said Gen. Marcos Rojas Figueroa of the National Guard.

"That coffee is going to be sold ... at the established price," he said.

Poor Hugo, slapped by the invisible hand. Good luck getting people to keep producing things when they can't sell them for more than the cost of production.

Bakeries and cafes continue to serve coffee at the regulated prices, while decaffeinated, instant and other types excluded from the price controls remain readily available. But packaged coffee has slowly been disappearing from retail outlets.

Chavez dismissed concerns about a shortage, saying he could simply make a law requiring people to drink more plentiful instant coffee instead.

OK, I made up that last sentence. But I do expect this story to have sequel, and while it may run as a comedy in America, it probably won't in Venezuela.