Economic chaos in Venezuela... ANC repeals its week old law

[GatoGordo]

ANC eliminates 30% profit limit
05 Dec 2017, 07:20

The National Constituent Assembly eliminated on Monday the profit limit of 30% established in the Fair Prices Act for all links in the production chain, and it was announced that the Executive will decide the new margin of profitability

According to El Universal review , the constituent Oscar Schemel said that the reform, discussed by the Economic Commission, proposes an increase in the percentage of profit that producers and merchants can now perceive. However, the figure is unknown at this time.

Article 9 of the Agreed Price Law, also promoted by the ANC, establishes the following: "The prices thus agreed allow profits to be the product of a combination of productivity, production volumes and distribution, plus the commercial margin of each unit of product or service ".

For its part, the Sundde has conducted several enforcement operations to force stores to sell what they call "fair prices". This has been done in several states of the country.

http://www.noticierodigital.com/forum/viewtopic.php?t=88518

update: The ANC set an arbitrary maximum price on about 50 items with its "Fair Prices Act". Foods and consumer goods. What could go wrong?

SUNDDE decided to send in its secret shoppers to various stores, to check for compliance. If a store was out of compliance, a SUNDDE representative showed up to "reduce" prices to the correct amount. The stock was gone within minutes.

The result was predictable. Suddenly, there was no more chicken to be had at any price. Ham. Cooking oil. Bread. Corn flour. You name it. Every item on the "prohibited list" was no longer on the shelves. Because merchants were not going to restock items they were losing money on.

Let no good deed go unpunished...

[GatoGordo]

1. Shoe shops bankrupt for not being able to replenish inventory

Posted by laverdaddevargas Date: December 06, 2017

María Elena Moreno

[e-mail]

Among the number of shoppers who run over to bring the shoes at half price, the owners wonder how they will replenish merchandise and the response is almost immediate: they will not. They explain that the high levels of inflation, added to these "arbitrary" price drops, ended up taking them to an imminent bankruptcy.

More unemployment and closure of business is what the merchants face, who say that what is collected in these sales is not even enough to repair the damage caused, ranging from theft of goods to damage to the infrastructure.

"Since Saturday I present a depressive picture and already on Monday afternoon I had to sit down to cry to be able to drain. I did not know how to respond to the employees, who asked desperately what would happen to their work. What do I tell the trustworthy staff that has raffled these difficult years with us that we will have to liquidate them, "says one owner, who preferred anonymity.

Most of the premises intervened will have to lower the sanctuary definitively, because the high prices to the major prevent buying new merchandise and in addition latent the risk of the Sundde repeating these measures. "We are not the cause of this devaluation, much less of inflation. They should invest the same energy in restraining the root of the problem. This is food for today and hunger for tomorrow, "adds another trader.

-snip-

http://laverdaddevargas.com/24/zapaterias-la-quiebra-no-poder-reponer-inventario/2017/12/06/

Let no good Chavista deed go unpunished. They were warned that this was going to happen, and lo and behold...

[GatoGordo]

2. Merchants bankrupted in ONE DAY. The Law of Unintended Consequences

"I'm going to close and I'm going back to Lebanon", a controlled merchant in Sabana Grande
DECEMBER 5, 2017 Author: JORGE FLORES RIOFRIO

(translated from Spanish)

Empty shelves and several naked mannequins were left in the store of the Lebanese merchant Mohamed Hussein, located on the boulevard of Sabana Grande , in Caracas, after prosecutors from the National Superintendency for the Defense of Socio-Economic Rights (Sundde) forced him to sell all the merchandise with a 50% discount .

"After this I will definitely close and return to Lebanon ," said the merchant who, after closing the establishment he has run for ten years, will leave five people unemployed . However, that will be your plan once you finish selling what little remains in local.

"Why will I open it again? Why is the merchandise taken away from me ? "Hussein asked himself. "I came to Venezuela in 2002 to work; Now, I was left without my livelihood. "

On Saturday, December 2, officials of the Sundde supervised several sales of clothing and shoes in this well-known commercial zone of the capital city and ordered the owners to sell all the merchandise with discounts of up to 50%.

http://efectococuyo.com/economia/voy-a-cerrar-y-me-regreso-al-libano-comerciante-fiscalizado-en-sabana-grande

No more merchandise. No more jobs. No more tax revenue. What could be the downside?

I'm not so sure that the Chavistas didn't know this would happen. They certainly didn't care. But thats the way it is with these guys. Symbolism over substance.