The economic turmoil in Venezuela has received increasing
international media attention over the past few months. In September, the toilet paper shortage (which followed food shortages and
electricity blackouts) resulted in the “temporary occupation” of the Paper
Manufacturing Company, as armed troops were sent to ensure the “fair
distribution” of available stocks. Similar action occurred a few days ago
against electronics stores: President Nicolás Maduro accused
electronics vendors of price-gouging, and jailed them with the warning that
“this is just the start of what I’m going to do to protect the Venezuelan
people.”
Earlier this month, in another attempt to ensure
“happiness for all people,” Maduro began to hand out Christmas bonuses, in preparation for the coming elections in
December. But political campaigning is not the only reason for the government’s
open-handedness. The annual inflation rate in Venezuela has been rapidly rising
in recent months, and has now reached a staggering 54 percent (not accounting
for possible under-estimations). Although not yet officially in hyperinflation,
monetary expansion is pushing Venezuela toward the brink…… seeds of disaster are sown from the
beginning of government intervention in the market, although “the first stage
of the inflationary process may last for many years.” But the final stages of
economic collapse occur far more quickly....... the difference between the U.S.
and other Western economies and Venezuela is merely one of degree, not of kind..…To Read More……
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