Venezuela Has Cheap Gas But No Cars

At the official exchange rate, Venezuelans pay 5 cents a gallon for premium gasoline while the real price is closer to one half penny a gallon. The dark purple country at the northern tip of South America (below), Venezuela has the…

Is the Price Right?

Let’s play an economic version of “The Price Is Right.” Is the price right for flood insurance? NY’s Senator Chuck Schumer wants the federal government to continue subsidies for flood insurance. As with all subsidies, federal aid has meant lower…

A Command Economy: Playing the Game

Queue is now a game. But not always. In Poland, during the 1970s, you might have taken an hour or two off from work, rotating with a brother or sister, to stand in line. Everyone could have been waiting for…

Income Redistribution: The Venezuelan Economy

The Venezuelan economy in 3 pictures: Observed during October, 2010, the sign shows that there is a price ceiling for Diana Oil. At 4,73 bolivars, the ceiling is 32% less than 7 bolivars, its “capitalist price.” As always, price ceilings lead…