Shock horror: Cuban Government Admits Chicken Shortage in Small Businesses Due to Price Controls

[El Presidente]

https://www.cubaheadlines.com/articles/287034

Cuban Government Admits Chicken Shortage in Small Businesses Due to Price Controls

Saturday, August 17, 2024 by Ethan Navarro

Just over a month after the implementation of Resolution 225, which sets a cap on the prices of basic products, the  Cuban government has acknowledged difficulties in small and medium-sized enterprises (SMEs), where the availability of chicken has significantly decreased.

 

he measure, designed to contain inflation and alleviate the economic burden on the population, has led to a shortage of the product in some markets, affecting both consumers and merchants in Santiago de  Cuba, according to the state-run newspaper Sierra Maestra.

The Ministry of Finance and Prices (MFP) had announced that the resolution aimed to temporarily reduce the prices of six high-demand products—chicken parts, oil, powdered milk, pasta, and sausages—in an attempt to curb inflation and protect the citizens' purchasing power.

However, now chicken has vanished from the sales points in the aforementioned province, the regime has admitted.

Yanet Aniuska Vichot González, coordinator of Programs and Objectives for Economic Affairs in Santiago de Cuba, explained that although no business has been closed in the province, the crackdown on price cap violations is a daily battle and is carried out with the intensity required by the circumstances.

The government has also acknowledged that the violations of the resolution have mainly occurred in the sale of chicken and milk, which have accumulated the majority of incidents.

Several merchants and SME owners have explained that the lack of price differentiation according to product varieties has led them to withdraw certain items from the market. They have also requested more support in importing and transporting goods to comply with the new price regulations without affecting product availability.

[BigGuns]

Hold on….my English is a little fuzzy, but is this article suggesting that government-controlled pricing on consumer goods led to supply issues with said goods? 😱

[BrightonCorgi]

22 hours ago, BigGuns said:

Hold on….my English is a little fuzzy, but is this article suggesting that government-controlled pricing on consumer goods led to supply issues with said goods? 😱

That cannot be. We are on the verge of implementing price controls in the US come next year. No way could that lead shortages.

22 hours ago, BigGuns said:

Hold on….my English is a little fuzzy, but is this article suggesting that government-controlled pricing on consumer goods led to supply issues with said goods? 😱

National rent control is what's really needed, right! Investors will be sure to develop new projects and maintain their existing properties!

[Jimmy2]

Price controls on anything is destructive in a Democratic society and people will always suffer. You need Competition between Businesses that will always lower prices. Also price controls will shut down private businesses as there will be no profit and wages for the workers will not be sustainable .  

This article is a perfect example of price controls and how it affects the economy and the people. People better wake up before it comes to a country near you maybe soon in the future.

Price Controls = Destructive on every level.  

[El Presidente]

8 hours ago, Jimmy2 said:

Price controls on anything is destructive in a Democratic society and people will always suffer. You need Competition between Businesses that will always lower prices. Also price controls will shut down private businesses as there will be no profit and wages for the workers will not be sustainable .  

This article is a perfect example of price controls and how it affects the economy and the people. People better wake up before it comes to a country near you maybe soon in the future.

Price Controls = Destructive on every level.   

Unless of course you have the curse of capitalism which is a monopoly/oligopoly in any one industry/sector creating a cartel environment. 

In such cases, it is the responsibility of govt to force the break up of such monopolies/oligopolies in order to foster competition. 

The chink in capitalisms armour is that the end game is monopoly. 

[SirVantes]

7 hours ago, El Presidente said:

Unless of course you have the curse of capitalism which is a monopoly/oligopoly in any one industry/sector creating a cartel environment. 

In such cases, it is the responsibility of govt to force the break up of such monopolies/oligopolies in order to foster competition. 

The chink in capitalisms armour is that the end game is monopoly. 

Wait, you mean in human affairs, and especially in public poilcy, there are no simple iron-clad rules? And that good judgment and moderation (in the multiple senses of that word) is the key? But that goes against everything the internet tells me!

[ha_banos]

8 hours ago, Jimmy2 said:

Price controls on anything is destructive in a Democratic society and people will always suffer. You need Competition between Businesses that will always lower prices. Also price controls will shut down private businesses as there will be no profit and wages for the workers will not be sustainable .  

This article is a perfect example of price controls and how it affects the economy and the people. People better wake up before it comes to a country near you maybe soon in the future.

Price Controls = Destructive on every level.  

Are you kidding! Look at cigar prices in Spain, Germany, France! They are great compared to our free economy here in the UK! You know nothing John Snow!

[Li Bai]

Common sense and decency should be the norm. I agree in a perfect World there should be no price controls but in the World we live in, there has to be.

I'm a bit off topic there but I see so many low or middle/low-income people here with the last iPhone and Airpods, they'd rather take a loan than keep their 1 year old phone 😩

Do any of you know how much it costs Apple to produce their last iPhone? How did we come to this? In terms of business it's amazing but in terms of human decency it's appalling, imo 🤔

[BrightonCorgi]

11 hours ago, Li Bai said:

I'm a bit off topic there but I see so many low or middle/low-income people here with the last iPhone and Airpods, they'd rather take a loan than keep their 1 year old phone 😩

Do any of you know how much it costs Apple to produce their last iPhone? How did we come to this? In terms of business it's amazing but in terms of human decency it's appalling, imo 🤔

I'm still on iPhone 12. 😞 When I buy a phone, I try to get at least 3 years out of it. Apple Care replaced the phone once as part of its life cycle.

[SCgarman]

11 hours ago, Li Bai said:

Common sense and decency should be the norm. I agree in a perfect World there should be no price controls but in the World we live in, there has to be.

I'm a bit off topic there but I see so many low or middle/low-income people here with the last iPhone and Airpods, they'd rather take a loan than keep their 1 year old phone 😩

Do any of you know how much it costs Apple to produce their last iPhone? How did we come to this? In terms of business it's amazing but in terms of human decency it's appalling, imo 🤔

Some of us don't give Apple a penny of our money, because we have ethical standards. I use Samsung. Made in South Korea, not child slave labor in the PRC.

[Shakey]

On 8/20/2024 at 6:49 AM, SCgarman said:

Some of us don't give Apple a penny of our money, because we have ethical standards. I use Samsung. Made in South Korea, not child slave labor in the PRC.

Having worked in that industry, I can absolutely guarantee that Sammy subcontractors have the same supply chain issues as Apple. "Final assembly in Korea" does not mean you have a clean supply chain. 

[SCgarman]

4 hours ago, Shakey said:

Having worked in that industry, I can absolutely guarantee that Sammy subcontractors have the same supply chain issues as Apple. "Final assembly in Korea" does not mean you have a clean supply chain. 

Well if it is just a "placebo effect" I'll still take it. I despise Apple, their CEO and their corporate "way". I'm free to spend my coin where I wish. I live in a free market economy...for now.