Officially, they won’t, but in practice, yes:
From real estate to cars to even some cheaper goods like health-care products, an increasing number of vendors demand dollars—or its black market equivalent in bolivars, now about 350, several times the official rate. That prices out most Venezuelans, who can’t get greenbacks because of complex currency controls the government uses to prevent capital flight.
Those controls have helped exacerbate class divisions between those who hold only bolivars and those with access to dollars, undermining Mr. Chávez’s so-called Bolivarian Revolution, the social movement embraced by his successor, President Nicolás Maduro, which aims to equitably distribute wealth.
Steve Hanke saw it coming.
Worthless bolivar, replaced by hard currency, ought to not surprise anyone, or, as Capt. Louie said, “I’m shocked, shocked, there’s gambling going on in here.”
I wonder what became of my former friend, the liberal, who told me that Chávez had improved the economy. She’ll blame Maduro for not getting Communism straight, unlike Hugo.
Additionally, just because you have dollars doesn’t mean you can get necessities.
For example, buying car tires: A contrast between a command economy, and a consumer-oriented economy.
At the command economy: Where gasoline is almost free, but two months go by and you can’t get tires for your car.
Gustavo Hernandez Acevedo describes Chavismo on wheels,
In early April, a close relative of mine was looking everywhere for new tires. He hasn’t found anything yet.
. . .
The root of the problem is (as expected) the fall in domestic production and the lack of currency to either reactivate local factories or bring enough imports to satisfy demand. Representatives of three major tire brands have met with government representatives, but they didn’t get any specifics about when they will get the resources to keep working.
But another factor is affecting the vehicle tire market: Proveeduria (Procurement)
What’s that?
It’s a state-led initiative thought up the central government back in 2013 to directly provide spare parts and tires to public and cargo transportation drivers, under the control of the Transportation Ministry. At the beginning, those State procurement stores got their tires from illegal units that were seized by the authorities.
But in March of this year, Land Transportation Minister Haiman El Troudi published an administrative order in which tiremakers are forced to sell 20% of production to proveedurias in order to keep public transportation up and running.
At the consumer-oriented economy: Tires replaced, car serviced, in less than three hours.
The other day I needed tires. I drove to the local service station, talked to the gentleman at the desk, and dropped off my car.
About an hour later, they called me back, we discussed price and what was needed.
Two hours later, the car was ready, I went, paid, and happily drove off.
According to this official website of the Venezuelan government (link in Spanish), the Tower of David has been evacuated and its squatters placed in government housing. The structure will be used as an Emergency Coordination Center – hopefully after a great deal of refurbishing.
Previous reports mentioned that the Bank of China would be using “La Torre de David” as its South American HQ.
