Customers line up to enter a state-run Bicentenario supermarket in Caracas, Venezuela. (Jorge Silva/Reuters)
Washington Post: The only question now is whether Venezuela's government or economy will completely collapse first.
The key word there is "completely." Both are well into their death throes. Indeed, Venezuela's ruling party just lost congressional elections that gave the opposition a veto-proof majority, and it's hard to see that getting any better for them any time soon — or ever. Incumbents, after all, don't tend to do too well when, according to the International Monetary Fund, their economy shrinks 10 percent one year, an additional 6 percent the next, and inflation explodes to 720 percent. It's no wonder, then, that markets expect Venezuela to default on its debt in the very near future. The country is basically bankrupt.
That's not an easy thing to do when you have the largest oil reserves in the world, but Venezuela has managed it. How? Well, a combination of bad luck and worse policies. The first step was when Hugo Chávez's socialist government started spending more money on the poor, with everything from two-cent gasoline to free housing. Now, there's nothing wrong with that — in fact, it's a good idea in general — but only as long as you actually, well, have the money to spend. And by 2005 or so, Venezuela didn't.
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WNU Editor: A textbook example on the pitfalls of Socialism. In my case .... lived under it for far too long .... glad to be away from it. In the case of Venezuela .... I pity the poor and the elderly .... they are going to suffer even more in the months and years to come.
4 comments:
This Is Your Brain On Drugs
This is you country on socialism.
See the difference?
Hugo Chávez's socialist government started spending more money on the poor, with everything from two-cent gasoline to free housing. Now, there's nothing wrong with that — in fact, it's a good idea in general — but only as long as you actually, well, have the money to spend. - WaPo
The Lord helps those who help themselves.
OK that is not int the bible, but the point is yes you can help the poor, but at some point they have to fly right and do for themselves.
But but why people does not like socialism its nothing wrong waiting in the line 4/8 hours to get a roll of toilet paper.
At my age, I can't wait in line that long without something bad happening. Picture the IBS scene from Ladykillers.
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