Monopolies and government

Monopolies are condemned by all. It has been shown in economic theory that bring losses to the equation being of society, but antitrust law can solve the problems of the Venezuelan economy?

The biggest problem is having monopoly control of prices outside of market mechanisms and the possible control of the supply of a certain good. Now, at Home supply shortages, inflation and currency devaluation are not caused by existing monopolies.

In fact, monopolies and oligopolies, which have still managed to survive the present socialist government regulation, are those who have sought more efficient access to goods and services for the Venezuelan.

On the other hand, the monopolist is the country's largest state. Leaving for a moment the economy, the state has a monopoly on justice, suspected violence, penalties and entry and exit of the borders and jurisdiction.

Now, in the field of economy, the state has a monopoly on monetary policy and fiscal policy. Due to these political and economic powers the state has expropriated companies formed to provide new goods and services, establishing itself as the largest employer in the country.

The Venezuelan state has the ability to control monopolies without passing a new law. Thanks to a prolific National Assembly Following an enabling law, we find that in the Venezuelan legal system already exist Procompetencia figures, and the decree Indepabis rank and force of law cost and fair prices.

It is important to remember that control the allocation of costs and prices, the state could create an impact on monopoly activities, as the power to set a price that affect consumer would not fall only on the producer, but in the public administration. On the other hand, has the specific mission Procompetencia control of monopolies and oligopolies, with no mention of the control that the production sector suffers from Indepabis.

Additionally, it should be mentioned transaction costs and economic factors that would suit a poorly defined new legal reality and changing due to the vagueness of the terms. Since the text of this law, which in itself is unnecessary due to the current legal structure violations pose to property and economic freedom.

The text is no longer the concept of free competition, a concept that is essential to a market economy. Rather, the objective is used to prevent, correct, delete, prohibit and punish monopolies, oligopolies and practices of a similar nature, which is quite indeterminate.