June 2nd, 2016 became quite a tense day in Caracas, Venezuela. Many people were waiting for their turn to buy food, but they were not served. This provoked much tension that ended up in a protest. They tried to march to the Miraflores Presidential Palace near the Fuerzas Armadas Avenue, to demand a solution for the food supply shortage, but the only answer they received was plain repression from the National Guard.
Events like this could —and will— happen again in the country. On the one hand, price controls drown any entrepreneurial activity, since they prevent entrepreneurs from even recovering the resources invested in the manufacturing of price-regulated goods. On the other hand, foreign exchange controls make it much more difficult to obtain the raw materials needed for production. Also, in general, there are few guarantees for private property rights, which transform Venezuela into an inhospitable environment for investment.