Market failures continued, part II

This government continues to erroneously intervene in the markets. The past is full of negative examples regarding controlled production or controlled prices.

This time the government aims at controlling the production of alcohol instead of sugar, in the past 60% of the sugar cane production was sufficient to handle the national market. Price control and importing sugar came remain as the options this government may exert, despite the inflation generated and a continued uncontrolled smuggling outside our borders.

Given the sugar production expectations, government has the intention to force lowering the prices for sodas and milk derivates.

I believe it is important that the government intervenes when needed, repeat, only when needed. Market failures can be managed here and elsewhere. So far, uncertainty and mixed signals do only harm in production and commerce.

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