Friday, January 9, 2015

Oh Boy, Argentina Faces Tampon Shortage



A shortage of tampons in Argentina has turned demand for one of the most personal hygiene products into an economic debate about what has emptied store shelves of the product, The Guardian reports.

 Miguel Ponce, head of the Chamber of Importers, correctly blames government regulations.

In general, he said, authorities have been slow to issue import permits for several products. And some companies have had trouble getting access to foreign currency, he said.

In recent months, Argentina has tightened its already strict control of foreign currencies in an attempt to curb inflation and capital flight. The government hopes that, by restricting currency exchanges, it will protect reserves at home needed to pay off its debts. That has often made it hard for importers to get the funds they need to buy products abroad.

Whenever there are shortages, you know that government restrictions and prices controls are in effect. Free markets supply markets and clear.

In April, Argentina added more than 100 consumer products to a price control program that now numbers more than 360 products.

8 comments:

  1. It's those greedy capitalists that are causing this shortage, or something...

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  2. Isn't the president of Argentina is a woman? So ask her where she's getting hers unless she no longer needs them.

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  3. "Whenever there are shortages, you know that government restrictions and prices controls are in effect. Free markets supply markets and clear."

    This implies that the only cause of shortages is government intervention which is not true.

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  4. No it doesn't imply that, it outright says that. Shortages do not exist without government intervention. Free markets clear.

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  5. @ Mike and Mr. Wenzel- there might be intentional shortages created by a company, such as if Apple only releases a certain number of new Iphones or something similar (without raising the price), to try to trump up more consumer interest. But 99% of the time, I think it is clear to look to the government.

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  6. Time for Cherokee Hair Tampons!

    http://en.wikipedia.org/wiki/Cherokee_Hair_Tampons

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