Chavez blames bourgeoisie for weak bolivar and high inflation

[myp]

President Hugo Chavez of Venezuela blamed "bourgeoisie" speculators for the country's economic problems- namely high inflation caused by a weak bolivar (Venezuelan currency.) The socialist leader's accusations are in stark contrast with Wall St., which blames Chavez's own nationalistic and anti-market policies.

Personally I think Chavez really has no idea what he is doing and once more is just trying to find a scapegoat for his failed policies. Venezuela is an example of why nationalizing major industries and trying to rid of the rich through government policy does not work. It does not help the poor or the rich.

More on that here: http://www.reuters.com/article/idUSN0916337920100509?type=marketsNews

Thoughts?

 

[David]

President Hugo Chavez of Venezuela blamed "bourgeoisie" speculators for the country's economic problems- namely high inflation caused by a weak bolivar (Venezuelan currency.) The socialist leader's accusations are in stark contrast with Wall St., which blames Chavez's own nationalistic and anti-market policies.

Personally I think Chavez really has no idea what he is doing and once more is just trying to find a scapegoat for his failed policies. Venezuela is an example of why nationalizing major industries and trying to rid of the rich through government policy does not work. It does not help the poor[/B] or the rich.

More on that here: http://www.reuters.com/article/idUSN0916337920100509?type=marketsNews

Thoughts?

I think the poor that aren't starving anymore would disagree. Chavez has the right idea, he just sucks at economics and micro-manages too much.

 

[myp]

I think the poor that aren't starving anymore would disagree. Chavez has the right idea, he just sucks at economics and micro-manages too much.

Although I have not read too much into the situation, I am pretty sure the poor aren't much better off (if not worse off due to the inflation.) I remember reading a bit about it recently in a study that showed that the poor really hadn't gained much from all this. Economically it makes sense at price controls tend to hurt the poor just as much as the rich.

And either way, the long run outlook is horrible for both the poor and the rich if these policies continue and inflation continues to run the way it does. In my opinion this is not helping anyone other than Chavez's self-created ego.

 

[David]

Although I have not read too much into the situation, I am pretty sure the poor aren't much better off (if not worse off due to the inflation.) I remember reading a bit about it recently in a study that showed that the poor really hadn't gained much from all this. Economically it makes sense at price controls tend to hurt the poor just as much as the rich.

And either way, the long run outlook is horrible for both the poor and the rich if these policies continue and inflation continues to run the way it does. In my opinion this is not helping anyone other than Chavez's self-created ego.

As I said, he did the right thing but did it wrong. Cuba has used similar strategies and is doing fine (if the embargo ended, I could see them becoming the new Japan). Venezuela on the other hand will fail but due to being lead by an idiot, not a failure of socialism.

 

[myp]

As I said, he did the right thing but did it wrong. Cuba has used similar strategies and is doing fine (if the embargo ended, I could see them becoming the new Japan). Venezuela on the other hand will fail but due to being lead by an idiot, not a failure of socialism.

I don't see Cuba as a great example either though, even without the embargo. Of course it is hard to tell in that case because the United States was very interlinked with Cuba before the embargo, but the country, especially Havana was booming before Castro took over. From a freedom perspective, it has certainly gotten worse as has Venezuela.

 

[David]

I don't see Cuba as a great example either though, even without the embargo. Of course it is hard to tell in that case because the United States was very interlinked with Cuba before the embargo, but the country, especially Havana was booming before Castro took over. From a freedom perspective, it has certainly gotten worse as has Venezuela.

Cuba has a higher literacy rate then the US (up from just 3% when Fidel [who was elected I might add] took over), has an average life expectancy just 2 years lower then the US, has 1 of the fastest growing GDPs in the world, controls a major oil field, sits on top of 1 of the most important trade routs in the world and has a booming tourism economy. End the embargo and the economically repressive effect it has will lift allowing Cuba to take full advantage of the above facts. It'll also help the US. An example: Mobile, AL is Havana's sister city. Restoring that trade route/cultural connection would go a long way toward bringing AL up from being a 3rd World ----hole.