Quote:
Originally Posted by tjinaz
In a country awash in oil revenues what do you smuggle?
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You smuggle whatever makes you money.
By artifically restricting the prices of food, Chavez created a huge demand -- so large, that supply could not keep up. Under normal circumstances, the high demand and low supply would create a high price to curb the demand. However, under circumstances where the market has been artificially restricted, it won't take long before a black market emerges where the price reflects the natural supply and demand curves and suppliers (or smugglers) can sell their wares at an enormous profit.