This is just price gouging reflecting greed & corruption among merchants (imitating the behavior of RD Gov, Police & DNCD). That is, take advantage whenever you can ... and steal everything else!

The merchants have never reduced prices for goods they bought for resale when the pesos was a RD$60 to the US dollar. They never reduced prices to reflect the recovery of the RD$. Secondarily, with the DR-CAFTA there was a big opportunity to make extraordinary profits as tarrifs were removed and merchants could have and "should have" passed savings onto Dominican households BUT AGAIN failed to do so. Now, we have a de-flation environment where commodity prices are falling for all sorts of raw materials. The merchants still are taking advantage of poor Dominicans as if the RD$ was at 60, there was no DR-CAFTA and the price of raw materials (i.e. oil was at $147). There has been some modest declines in the price of gass but this is the only rare exception because ALL commodities are dow

(cont)
Again, the RD Gov is lying to the people by stating "we are doing all we can to control prices". All these cats, are in bed together while Prez LF & RD Gov get kickbacks to remain silent and adopt the Fannin strategy of "DO NOTHING"! Prez LF stated recently, that the RD tourism was sound and immune to economic downturns... Like then and even now in the above article the RD Gov is lying!

The best thing the RD Gov can do is to improve infrasture, clean water, national rail, nuclear energy, good roads to ports to more efficiently move goods to/from the RD. Enforce the DR-CAFTA you already have on the books to put the cheapest products on the shelves for consumers no matter where they are produced in the Americas...while moving RD exports to port faster & cheaper to sell to the outside world. Also, give incentives to the Wal-Marts, Home Depots to open new stores in the RD thus you will not have to enforce price controls because the old merchants will be run out of business!

This works "Also, give incentives to the Wal-Marts, Home Depots to open new stores in the RD thus you will not have to enforce price controls because the old merchants will be run out of business!" and they deserve to be

JD,

There is an important portion of the equation being left out. Having worked in numerous Latin American countries one of the biggest factors that effect the retail pricing structure, especially in the DR is customs duties. The other portion that I still do not get after all of these years is this;

I import chickens for my grocery stores and my end price is calculated like this;
Purchase $0.60 per pound
Shipping $0.20 per pound
Customs $0.10 per pound
Transport $0.10 per pound ( port to warehouse)
Subtotal $1.00 per pound
Burden at 45% = $0.53 ( employee mandated benefits from the govt.)
Subtotal $1.53
Profit at 10%=$0.17

Resale $1.70 per pound

Now a guy down the street who raises his own chickens and sells them from his Colmodo, sells them for the same price yet he incurrs none of the expenses that I do. A guy down the street wants to sell them for $1.50 and the other guys goes ballistic and tell him he must raise his price to $1.70 to be fair. Fair to who?

OH MY GOD!

How dare they?

Who said that Merchants had a right to a profit?

Don't they know they exist just to sell products at a low price without any markup?

A lot of people complain about the price of goods in the DR and other LA countries, but the same mandated benefits (vacation time, sickness, Utilidades, Utilidades Escolar, time worked etc., etc, have to be placed on the price of goods sold. In Venezuela for example, Chavez gave everyone a 35% increase to the minimum wage and now the cost of food products alone have gone up over 54% this calender year alone. Imagine what would happen to prices in the DR if the wages go up 50% like the unions want.

if the wages went up by 50% in the DR, all hell would break loose. the additional money in circulation would drive up the price of everything, unless there was a corresponding increase in productivity, which is not feasible. the people without jobs would starve to death.

Texasshoe you raise some valid concerns as does Dreadlocks. TS, in looking at your list of add-on tariffs my question is was this before or after DR-CAFTA? If this was after, DR-CAFTA then my 2nd question is then what the hell was the passage of the free trade agreement for?

The spirit of this law was to open up markets with minimum add-on costs so that the countries in the Americas could buy, sell and trade goods more efficiently and the best prices and products would get to the customers at the best prices via competition. Clearly, there is collusion among merchants in the RD which is why it pissed me off to read the BIG LIE that the minister of Industry & Commerce was doing everything possible to control prices (when in reality the reverse is true).

Citizens are NOT paying the true costs for goods and services. As in the chicken example if one merchant lowers his price to $1.50 but then gets pressured by other merchants to participate in collusion.

(con't)
In the end, because citizens have fix and limited amount of cash. Basic economics tells us they buy less given artificially higher prices. Thus, there as prices rise vs fixed & limited wages the people are forced to buy less and make hard choices... On the macro-level, as people buy less you snowball into a contractionary environment (or recession). This recession along with the price increase of merchants (rise in price meaning Inflation) leads to what we call STAGFLATION. And now, today lets factor in the cash/capital crisis and there is a receipe for things to really get F@#$-up fast. Fortunately, we have de-flation with lower oil and commodity prices in the US (but these lower prices are not the case for the RD).

This is why sound RD leadership is so very critical. The reality now is that the masses of poor are dis-advantaged further at the expense of the Lionel elite. I expect more deterioration & subsequent social unrest (i.e. for lack of clean water protests)

(Sarcasm ALERT) I love the entrepreneurial spirit of the Dominican "Funcionarios": Always in the lookout for ways to make money off the back of their countrymen...

Ah, you sons of w*&^res. There is a warm place in hell with your names on it!!!!

These people are very stupid. UK when economy was developing had price controls and this was policed. DR needs list of prices to be centrally issued and displayed by every vendor.
This way vendors who sell to 100 customers / hour make profit, others not.
Strong economies such as Vietnam, China etc. have price controls.
Anyone can see this.
When I was growing up in the UK both the price of flour and bread were controlled. This was good as the country needed many houses, schools etc. and this system ensured this sector was efficient releasing labour for other sectors.,
Of possible interest to those with economics education is the non-price competion this system created.
Children ,me included, queued up to get free rolls in the morning. I guess the baker figured if he was generous to children then families would give him loyal support and keep his production up. His fixed costs were fuel for ovens, premises etc.
S.
S.

abc200,
Whowouldathunkit,
Karl Heinrich Marx & Vladimir Ilyich Ulyanov were onto something :-)))

No!, those dudes were crazy, enterprise is necessary. When I worked in E. Germany you had to queue three times for everything. Bread included. First to pay, second to collect receipt, third to collect bread. But prices were not related to the idea of 'fair price. Good governments use price mechanisms and price controls to maximise welfare - but make the rules clear and continuous ( ( e.g. no sudden changes) to encourage the best entepreneurs.
S.

england in the 50s a real paradise ration books unions bad food and bad teeth what a moron

taxesshoe

"A guy down the street wants to sell them for $1.50 and the other guys goes ballistic and tell him he must raise his price to $1.70 to be fair. Fair to who?"

that's capitalism , he doesn't have to be fair ... you know that

......

The only reason most Dominicans eat is because right about now. Dominicans in the United States and outside DR are supporting them. I have been to many people’s houses, a lot of them have the same thing going on sending cooking oil, rice, beans to DR and on top of that they have to send money. The cops are under paid they president and everyone down is corrupted. The United States doesn’t care because we are just a bunch of Monkeys to them.

Honestly, I feel that a lot of people like AnthonyC, GC, Taxes shoe and countless others would like to keep DR what it is now a tourist trap with stupid people a corrupt government and cheap whores.
When will they learn, a train to now where, hotels owned by none Dominicans just like the sugar fields. I government that blatantly steals, lies and buys elections.
When will we learn?
And when I say we I mean my people, not the non- Dominicans here on this web site but those that live on the island they don’t want to see us achieve. So they send the U.S. military and CIA to kill our bravest and wisest. Those that had courage and those that truly lived the words
Dios Patria, Libertad

"Written by: chillaxin201
Honestly, I feel that a lot of people like AnthonyC, GC, Taxes shoe and countless others would like to keep DR what it is now a tourist trap with stupid people a corrupt government and cheap whores.

Chillidog,

You don't know me. You just hate me because I represent a threat. A man who believes in Personal Responsibility.
Your hatred causes you to make false assumptions to justify your failures.

Since the 1980's I have warned anyone who would listen that Tourism is a terrible industry to base you nation's economy on.
I have also stopped most of the business I do with the DR because of the corruption. Both private and public. What few transactions I still do with the DR takes place in the US.
As for the Cheap whores........Sonny, I do nothing cheap.

JD,

Here is how CAFTA works it eliminates most not all;

If passed by the countries involved, tariffs on about 80 percent of US exports to the participating countries will be eliminated immediately and the rest will be phased out over the subsequent decade. As a result, DR-CAFTA does not require substantial reductions in US import duties with respect to the other countries, as the vast majority of goods produced in the participating countries already enter the US duty-free due to the US Government's Caribbean Basin Initiative.

With the addition of the Dominican Republic, the trade group's largest economy, the region covered by DR-CAFTA is the second-largest Latin American export market for US producers, behind only Mexico, buying US$15 billion of goods a year. Two-way trade amounts to about US$32 billion annually.


DR-CAFTA reduces tariffs, which are a form of tax. However, every nation in CAFTA remains free to set its overall tax level as it sees fit.

Chill,

"A guy down the street wants to sell them for $1.50 and the other guys goes ballistic and tell him he must raise his price to $1.70 to be fair. Fair to who?"

that's capitalism , he doesn't have to be fair ... you know that

This is meant as an example of how twisted the mentality is of a lot of latin cultures are. I have said before and will state it again. If the guy want to sell for $1.50 why does the other guy get Pi$$ed off and demand he raise his price to match his. Most latins can not stand to see someone sell more than them even if they end up making the same money. I am a firm beliver in what free markets can do with prices and usually the lower price is the result but to the latin mindset you MUST sell at the price everyone else is selling for or its NOT FAIR. So again I ask FAIR TO WHO?

taxes come on, you know very well that LIFE is not fair... we all know that

Chill,

"Honestly, I feel that a lot of people like AnthonyC, GC, Taxes shoe and countless others would like to keep DR what it is now a tourist trap with stupid people a corrupt government and cheap whores."

I had no input whatsoever in the way the DR has turned out, seems the citizens and government has done that all on their own. I have worked over 30 years in my profession and most of it has been spent in Central / South America and the Caribbean. When people think of Venezuela they think of Margarita Island, I dont like it for the same reasons you claim I endorse, too many hotels. Tourist traps suck the world over no matter where they are. The people who have made the DR the way it is are the ones you should have a beef with--wait...they are Dominicans.

Stupid people you claim- Lack of education and facilities from whom?
Corrupt government- I did not elect them but the uneducated masses you speak of did.
You should really read the posts first and comprehend them

Chill,

You are really missing my point, way off base

chill nappy time

You miss my point entirely. In order to control prices the government must set prices in a developing economy. It is their responsibility. Like China, Vietnam, elsewhere. This way producers, merchants etc. can make a 'fair' profit and be protected against speculators, etc.
In Europe, Germany for example Larger companies are required to have supervisory boards that consider the general interest ( consumers, employees, World impact etc. ). A much simpler and direct control is appropriate for developing countries. As indeed it was appropriate for Japan and Western nations when they were developing. The idea of setting fair prices is to ensure the buyers do not get gouged, and workers in that trade have a fair returm.
There are many examples in Western economies where price control is the norm. London taxis are allowed to and do charge a certain fare. You cannot go to a taxi rank and say 'who is the cheapest to your destination'?
S.

It is simple as in China - The government publishes a list of maximum prices. When no-one will produce at the maximum price it sets up a factory to produce at this price. For example in an area of high unemployment, using disabled workers etc. Sometimes an entepreneur can win the contract for production, with support. This is the way Japan worked in the 30's, Europe up to 1980.
S.

it is simple you are a simpleton and a bs thrower combined

Just try to spread the news that other economies such as China, Vietnam etc. find price controls essential. Producers can make a fair profit and the price of their inputs is controlled as well so they can make a good plan for the future.
S.

Just try to spread the news that other economies such as China, Vietnam etc. find price controls essential. Producers can make a fair profit and the price of their inputs is controlled as well so they can make a good plan for the future.
S.

you are pathetic posting this rubbish

it was a very interesting discussion here until the personal abuse came in again ..I do not believe it is necesary to always attack the writer in such a borish and bullying way ..it is very obvious that some writers here have good micro economic backgrounds and understanding and also understand much of the defects and the benefits of a an imperfect capitalist system.
The actual facts are undeniable...basic food items and simple clothing , the staples, have risen significently in the dominican republic over the past year . If the imputs have reduced , and I do not believe this until I see the detailed figures because electriciy , for one,has risen significently then th e problem is with the middle man because there are so many small outlets for basic food and clothing that all the merchants can not be having higher profit margins ...Probably the simple answer is that the imputs into production of the basics have not been reduced at all:

The reality is a few people control most imports and so control reslae price. If the cost to purchase goes down since they control the flow they do nto pass on the savings. Rememebr all the food stuff shipments that were delayed in customs until after they went bad. What abotu the smuggling rings. How much of the savings is passe don. None.

ricardolito " ..it is very obvious that some writers here have good micro economic backgrounds and understanding and also understand much of the defects and the benefits of a an imperfect capitalist system." not that idiot and you know it .....it is constant rubbish cut and paste socialist pollyana nonsense

In the case of an effecive monopoly or where there is collusion in price fixing in other non-socialist countries the government intervenes also. E.g in Bangladesh, I have a friend there, the government through the military runs fair price shops.
http://voanews.com/bangla/archive/2007-05/2007-05-26-voa3.cfm
The government also actively promotes alternatives to rice.
http://www.bangladeshnews.net/story/349447
Potatoes includes, by the way, sweet potatoes, yams, etc.
The army has a commerical side to run shops hotels. When there is a crisis you see the Army in the DR distributing the food parcels. It does not seem too difficult for them to run fair price shops when there is not a crisis.
Equally it is not difficult for the DR government to promote yams etc. that can farily easily be grown on spare ground here, allbeit inefficienty.
Nor does the idea of a task force to deal with the crisis seem inappropriate:
http://voanews.com/bangla/2008-12-05-voa2.cfm
S.

In the case of an effecive monopoly or where there is collusion in price fixing in other non-socialist countries the government intervenes also. E.g in Bangladesh, I have a friend there, the government through the military runs fair price shops.
http://voanews.com/bangla/archive/2007-05/2007-05-26-voa3.cfm
The government also actively promotes alternatives to rice.
http://www.bangladeshnews.net/story/349447
Potatoes includes, by the way, sweet potatoes, yams, etc.
The army has a commerical side to run shops hotels. When there is a crisis you see the Army in the DR distributing the food parcels. It does not seem too difficult for them to run fair price shops when there is not a crisis.
Equally it is not difficult for the DR government to promote yams etc. that can farily easily be grown on spare ground here, allbeit inefficienty.
Nor does the idea of a task force to deal with the crisis seem inappropriate:
http://voanews.com/bangla/2008-12-05-voa2.cfm

There is als the issue that the global 'free trade' economy leads to DR apparel businesses being undercut by other countries. Workers can earn as little as 12 US cents an hour.
http://www.bangladeshnews.net/story/438591
S.

In the UK Prince Charles, in response to hard times is promoting a revival of 'Dig for Victory'. Of course GC we all know that Prince Charles is an arch - communist!
http://www.redwhiteandgrewblog.co....conic-dig-for-victory-poster.html
There are even those in the UK, must be arch communists, who believe other countries such as US could follow this lead.
I would think it the start of revolution if when walking through the colonial zone there were a few tomato plants on balconies.
Now for some monkey business for GC.
Economic efficiency in the coconut business can be improved.
http://www.dailymail.co.uk/news/a....-coconuts-day-couple-bananas.html
S.

You can do your bit GC - in place of imported cake mix you can make carrot cake using local carrots.
With a slice of pineapple on top it tases good!
http://answers.yahoo.com/question/index?qid=20070415113557AAQ73Id
You avoid the price gouging importers of your Betty Crocker cake mix. If you can find a local source of carrots at a good price and install a solar oven you can bring down the price of cookies!
You do not need imported gas from other price gougers.
Makes mangu as well.
All for a 200 dollar investment!
I'm sure Prince Charles ( strong communist / socialist ) would approve!
Innovation in broken TV land!
You as a loyal Canadian should appreciate the leadership the Royal Family is offering.
S.