Your confusing issues, there is no takeover of price even if it happens it's a rare case
Price ceiling and price floor it's very common in any economy
You are the one who is confusing issues.
Is there no takeover of price? Or is there a takeover of price, but a rare one?
If there is a rare one, what forbids that rare case to be a precursor of a more general version?
After all, we have seen a trend of ovrereaches from this governmnent. This is not an isolated incident, it is part of a trend.
In a free market economy, or even a mixed economy, the government does not set price ceilings. Prices ceilingsare set by the economic forces of demand and supply.
The government sets the business framework by fiscal and monetary policies, taxation, industry regulation etc. Never a price ceiling.
A price ceiling is just about the laziest and most uninspiring action a government could impose in a free economy/ mixed economy type of setting.
It is by definition, a fingerprint of the command economy.
The Venezuelans are rejecting a command economy in a parliamentary election today. People spend up to a day out of the week just to stand in lines for common products such as flour and toilet paper. Because the government sets prices for these products, the prices are not within the elasticity of the forces of supply and demand, as a result, this creates scarcity and smuggling into Colombia where the market sets the price.
Venezuela is the world's number one country when it comes to oil reserves. Most people talk about Saudi Aarabia having a large amount of oil reserves. But Saudi Arabia comes second to Venezuela. Venezuela has 297.6 billion barrels in reserves by 2013 figures. Saudi Arabia had 267.91 by late 2012. But still, Venezuelans, about 31 million of them, much less than Tanzanians, are going through a time much like what we had in the early 1980s as far as queing for common everyday items. All because of socialist price control.
For some of us who actually lived through the early 80s, went through the lines to get flour, sugar and rice from NMC through CCM shops, we do not want to see a slippery slope that will lead us there again.
Cc
Nyani Ngabu