10 sats \ 6 replies \ @Undisciplined 7 May \ parent \ on: What is it like to live in Venezuela currently? Current economy econ
Price ceilings create shortages. Bitcoin miners were just one of the more convenient groups to scapegoat for the inevitable result of bad policy.
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A price ceiling means that it's illegal to sell electricity above a certain price. Even the most resource rich places, still have a limited energy supply.
When the price is held down artificially, energy intensive activities will expand to take advantage of the lower prices.
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At any given moment there's a finite amount of power being generated from hydro plants, even if they were to produce energy indefinitely.
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There's no such thing as "what they need". At any given price there's a quantity that will be economical to use (demand) and an amount that will be economical to produce (supply).
When prices are artificially suppressed demand > supply, which means there's a shortage.
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