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Venezuela should take a similar route. Didn't they learn from Britain as to what happens when you splurge your oil revenues in your own country.
by ashconnor 16y ago
Venezuela should take a similar route. Didn't they learn from Britain as to what happens when you splurge your oil revenues in your own country.
- varjag 16y ago"They"? You mean "he". It's the difference between Venezuela and Norway, and also the reason why it won't happen.
- arethuza 16y agoThat "splurge" was done by Margaret Thatcher's government in the 80s - which basically used the massive oil revenues to support the conversion of the UK from a dysfunctional socialistic state dominated by relations between large (often nationalized) industries and what was essentially an economy dominated by free enterprise with socialist support services. Although I hated her in the 80s I have to admit that Thatcher, along with Reagan, actually got quite a lot right.
- ashconnor 16y agoWhether or not you think privatisation was a good thing. Spending huge oil revenues domestically caused massive inflation.
- arethuza 16y agoI'm not sure that there is much correlation between the two - the really bad years for inflation were '73 to '83 and oil revenues didn't really take off until '82 or so: http://www.marketoracle.co.uk/Article4884.html http://www.marketoracle.co.uk/Article4884.html http://safalra.com/other/historical-uk-inflation-price-conversion/ http://safalra.com/other/historical-uk-inflation-price-conve... I'm obviously not an economist, so you could well be right!