self-proclaimed 'president' of Mexico, proposes price fix

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#1 self-proclaimed 'president' of Mexico, proposes price fix

Post by frigidmagi »

Herald Tribune
MEXICO CITY: Andres Manuel Lopez Obrador, Mexico's self-proclaimed "legitimate president," on Wednesday proposed a law to lower the cost of goods and services.

The action comes two days after he declared himself president and it gives some indication of how Lopez Obrador, who lost to conservative Felipe Calderon by a razor-thin margin on July 2, plans to operate his parallel government, which has no legal standing. Calderon will be sworn in Dec. 1.

Under Lopez Obrador's proposal, a commission charged with monitoring prices could order companies to lower the cost of goods and services if they are at least 10 percent more expensive than corresponding items in the United States, Canada and Central America.

Some analysts have suggested that Lopez Obrador, who claims Calderon won by fraud and has refused to accept the results, could be a positive influence if he used his clout to push for changes in Congress, where his coalition has the second-largest bloc of seats.

His supporters have pledged to prevent Calderon from taking office and to badger him throughout his term with protests and other acts of civil resistance. Calderon, a member of President Vicente Fox's conservative National Action Party, defeated Lopez Obrador by less than 1 percentage point.

Last month, congressmen aligned with Lopez Obrador presented a legislative agenda calling for universal health care, job creation and anti-poverty plans. Calderon has embraced similar proposals, partly to attract support from Lopez Obrador's followers.

The commission proposed by Lopez Obrador also could order authorities to allow the importation of alternative products.

"In this poor country, we pay more than rich nations for services and with worse results," Lopez Obrador said in announcing his initiative. "This is unacceptable...

"If this law is approved and excessive prices are corrected in cement, telephone service, electricity, bank credit, it will improve incomes for Mexican families, especially the most needy, and the incomes of the middle class as well."

Lopez Obrador's office released a chart showing the cost per minute for cellular telephone use in Mexico is nearly US$.24 compared to only US.06 in the United States. It said kilowatt hours of residential electricity cost more than US$19 (€15) in Mexico, compared to less than US$9 (€7) in the U.S.

Lopez Obrador also said he will receive a monthly salary of 50,000 pesos (about US$4,500; €3,500) for his post as "legitimate president," or about US$54,000 (€42,000) a year. He said the money would come from donations to a special bank account.

President Fox, who leaves office on Dec. 1 after a six-year term, received a salary of about US$238,000 (€184,700) last year.
While it is shameful that they pay more for less, this suggested law isn't addressing the root causes of the inequality. Speicially the lack of infersturcture and the overflow of corruption that make it harder to provide those services in the first place. Price fixing never works, it didn't work for Diocletian, the Roman Emperor who tried to stave off Rome's economic downturn with it. It didn't work for the Soviet Block and it won't work for Mexico, if it's Congress is stupid enough to listen to a man so obessessed with his own standing and power that he refuses to accept an election that passed muster with European and UN observers.

Frankly I've said repeatly nothing good will come of him and it's looking more and more like I'm right.

Speaking of people nothing good comes from, kill Al Sadr.
"it takes two sides to end a war but only one to start one. And those who do not have swords may still die upon them." Tolken
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