Venezuelan leader Nicolas Maduro with Cristina Fernandez |
One of the very few nations in the Western Hemisphere that
rivals Argentina in mismanaging its economy is Venezuela.
The latest economic results show Venezuela's inflation
accelerating to recent highs - while declining in most other
countries.
Source: GS |
A more troubling economic trend however, often endemic in
socialist regimes, is scarcity of products. In an attempt to
control prices, such economies eliminate incentives for
production. And many products that people in more open
economies usually take for granted are simply not always
available on Venezuela's "official" markets. Shortages in
items from chicken to toilet paper are prevalent - often
even in stores for the wealthier customers. Those who spent
any time in the old USSR will clearly see the similarities.
The nation's "scarcity index" hit a new record recently.
To add to this nation's problems, repeated blackouts across
the country remind citizens that being one of the largest
energy exporters doesn't help with electricity at home when
the economy is so mismanaged. Welcome to Venezuela...
Source: GS |
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