Wednesday, January 7, 2015

Price and Currency Controls Result in Venezuela's McDonald's Running Out of French Fries

Hold the pickle, hold the lettuce, hold the fries?

Venezuela's more than 100 McDonald's franchises have run out of potatoes and have stopped serving fries.

 "It's because of the situation here; it's a total debacle," said Maria Guerreiro, who huffed out of a Caracas McDonald's with her family when she found out they were serving only fries made of yuca, which is also known as cassava. Her daughter won't eat the super-starchy root, she said, and they'd come for the sole purpose of treating the two-year-old to a Happy Meal, reports AP.

BUT, get a load of this via AP:
While McDonald's may be the ultimate symbol of U.S. capitalism, the socialist government seems acutely aware that Venezuelans relish their Happy Meals. A state-sponsored news website posted a story this week assuring the situation "has nothing at all to do" with government policy.

Of course, as any first year econ student familiar with supply and demand curves will tell you, it is ONLY because of government price control policies that shortages occur.  Without controls, markets clear, including French fry markets.

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