3 ms·

I really don't think so. I will grant you that it looks like blah blah capitalist ideology versus blah blah socialist ideology with your usual helping of US ba

I really don't think so. I will grant you that it looks like blah blah capitalist ideology versus blah blah socialist ideology with your usual helping of US backyard imperialism and Latin American defiance thrown into the mix. I support wealth distribution in Venezuela. I feel for the people of Venezuela. At the same time I am forced to recognise that the ideals of the regime in Caracas are not translating into a robust economy even though I wish they were. If the level and rate of increase of inflation is as bad as it is being claimed then I really feel for the average person in Venezuela. I have never lived through times of rampant inflation and I hope I never will. I am not an economist but as far as I can tell the only way to generate inflation is buy cranking the printing presses. And I guess that is what is happening in Venezuela. Unless there is some kind of hidden outside pressure that would force the Central Bank to do this? Is that even possible? I thought it might be the case with Zimbabwe, an act of covert economic warfare by the West, but I know of no mechanism.

matthodan 11y ago
Another way to generate inflation is by increasing the velocity of money in an economy-- i.e. people spending money faster by borrowing more and saving less. Doing so increases the amount of money in the economy, but instead of the source being a printing press it is a bank balance sheet.
obrero 11y ago
> I am forced to recognise that the ideals of the regime in Caracas are not translating into a robust economy even though I wish they were. What about prior to 1999? The people running Venezuela had many decades and centuries to create a "robust economy" in Venezuela. I wasn't seeing constant US headlines about how Venezuelan leaders were mismanaging the economy in those times. Venezuela is being hurt by the same thing hurting every oil producing state - low oil prices. Those in Venezuela who wanted to create a "robust economy" had decades to do so. As soon as power falls from their hands, everything becomes a crisis, they suddenly notice Venezuela lacks a "robust economy". The PSUV has been continually reelected since 1999, they must be doing something right, the people of Venezuela keep putting them into power. Remembering the New York Times editorial page celebrating the coup d'etat against Chavez's elected government, by the head of the Venezuelan business council, who, surrounded by the heads of the military, abolished the parliament, I'm slightly skeptical of the concern of the owners of US media outlets for the economic well-being of the average Venezuelan.
- epx 11y ago
  Governments play a trump card: the known devil is better than the unknown one. Sunk cost, you know.
  - Kalium 11y ago
    It's not about sunk costs. It's about risk. The devil you know is a known risk that can be controlled for. The other might be better... but also might be much worse. It's an unknown.
- 1zq 11y ago
  What about prior to 1999? The people running Venezuela had many decades and centuries to create a "robust economy" in Venezuela. I wasn't seeing constant US headlines about how Venezuelan leaders were mismanaging the economy in those times. Venezuela is being hurt by the same thing hurting every oil producing state - low oil prices. Those in Venezuela who wanted to create a "robust economy" had decades to do so. As soon as power falls from their hands, everything becomes a crisis, they suddenly notice Venezuela lacks a "robust economy". So it's okay for the economy to be mismanaged now, because it was mismanaged before 1999, as long as the people doing the mismanagement are different? We shouldn't criticize the current leadership and wish for something new because the previous one was also bad? The people running Venezuela now have had over a decade in power with the highest oil windfall in its history, you'd expect things to be better or at least the same as before 1999, not far far worse, as they are now. The PSUV has been continually reelected since 1999, they must be doing something right, the people of Venezuela keep putting them into power. They must be doing something right to keep getting elected, which is not the same as doing something right to improve social conditions and the lives of Venezuelans for today and in the future. Remembering the New York Times editorial page celebrating the coup d'etat against Chavez's elected government, by the head of the Venezuelan business council, who, surrounded by the heads of the military, abolished the parliament, I'm slightly skeptical of the concern of the owners of US media outlets for the economic well-being of the average Venezuelan. The fact that US media outlets are not concerned about the well-being of the average Venezuelan does not mean that the rampant crime, sky-high murder rate, shortages, inflation, lack of disaster prevention in poor areas prone to flooding, government-promoted homophobia, government control of the media, gross environmental mismanagement, use of state funds to promote the ruling party, pervasive corruption, lack of medicines and medical supplies, etc. don't exist.

matthodan 11y ago

Another way to generate inflation is by increasing the velocity of money in an economy-- i.e. people spending money faster by borrowing more and saving less. Doing so increases the amount of money in the economy, but instead of the source being a printing press it is a bank balance sheet.

obrero 11y ago

> I am forced to recognise that the ideals of the regime in Caracas are not translating into a robust economy even though I wish they were. What about prior to 1999? The people running Venezuela had many decades and centuries to create a "robust economy" in Venezuela. I wasn't seeing constant US headlines about how Venezuelan leaders were mismanaging the economy in those times. Venezuela is being hurt by the same thing hurting every oil producing state - low oil prices. Those in Venezuela who wanted to create a "robust economy" had decades to do so. As soon as power falls from their hands, everything becomes a crisis, they suddenly notice Venezuela lacks a "robust economy". The PSUV has been continually reelected since 1999, they must be doing something right, the people of Venezuela keep putting them into power. Remembering the New York Times editorial page celebrating the coup d'etat against Chavez's elected government, by the head of the Venezuelan business council, who, surrounded by the heads of the military, abolished the parliament, I'm slightly skeptical of the concern of the owners of US media outlets for the economic well-being of the average Venezuelan.

epx 11y ago
Governments play a trump card: the known devil is better than the unknown one. Sunk cost, you know.
- Kalium 11y ago
  It's not about sunk costs. It's about risk. The devil you know is a known risk that can be controlled for. The other might be better... but also might be much worse. It's an unknown.
1zq 11y ago
What about prior to 1999? The people running Venezuela had many decades and centuries to create a "robust economy" in Venezuela. I wasn't seeing constant US headlines about how Venezuelan leaders were mismanaging the economy in those times. Venezuela is being hurt by the same thing hurting every oil producing state - low oil prices. Those in Venezuela who wanted to create a "robust economy" had decades to do so. As soon as power falls from their hands, everything becomes a crisis, they suddenly notice Venezuela lacks a "robust economy". So it's okay for the economy to be mismanaged now, because it was mismanaged before 1999, as long as the people doing the mismanagement are different? We shouldn't criticize the current leadership and wish for something new because the previous one was also bad? The people running Venezuela now have had over a decade in power with the highest oil windfall in its history, you'd expect things to be better or at least the same as before 1999, not far far worse, as they are now. The PSUV has been continually reelected since 1999, they must be doing something right, the people of Venezuela keep putting them into power. They must be doing something right to keep getting elected, which is not the same as doing something right to improve social conditions and the lives of Venezuelans for today and in the future. Remembering the New York Times editorial page celebrating the coup d'etat against Chavez's elected government, by the head of the Venezuelan business council, who, surrounded by the heads of the military, abolished the parliament, I'm slightly skeptical of the concern of the owners of US media outlets for the economic well-being of the average Venezuelan. The fact that US media outlets are not concerned about the well-being of the average Venezuelan does not mean that the rampant crime, sky-high murder rate, shortages, inflation, lack of disaster prevention in poor areas prone to flooding, government-promoted homophobia, government control of the media, gross environmental mismanagement, use of state funds to promote the ruling party, pervasive corruption, lack of medicines and medical supplies, etc. don't exist.