Monday, November 11, 2013

Long run vs. short run

President Maduro is trying to win re-election so he seized the biggest electronics store and held a "sale."

In the short run, people get cheap stuff and they are happy.  But in the long run, he has reduced the incentive of retail outlets to serve people. 

This summer, I warned him about these kinds of policies, and I even sent him an autographed copy of my textbook.

Someone please get him to read chapter two. 


  1. You might increase the chances of him reading some of the chapters if you give him a copy in Spanish. As a world leader, I'm sure he speaks English, but it is probably more difficult for him to read than Spanish.

  2. When reading this article, my first thought is, "Who would willingly buy a plasma TV these days when other, better technology is available?" I guess it doesn't matter to those who are getting it for a deep discount.

    My second thought revolves around the idea that these people are getting it at a discount which is being subsidized by the actual produces in Venezuela who then have to increase the prices of common goods which people can no longer afford. But at least they have their discounted TV to distract them of their hunger pains.

    Lastly this returns me to one of my favorite Simson's episodes when Homer decides to sell grease for a living, cooks down bacon and gets 65 cents for his efforts:

    Homer: "You see, son, we can make money selling grease."
    Bart: "Yeah but that's only 65 cents and the bacon cost 25 bucks."
    Homer: "Big deal. Your mother bought the bacon."
    Bart: "But she gets her money from you."
    Homer: "And I get my money from grease, so it all works out."