Socialism with price controls, state control of the media, and currency abasement still does not work. Venezuela's government has just arrested the biggest opposition leader. The currency is in a tail spin.
The bolivar fuerte (or “strong bolivar,” as Chávez had the currency renamed) weakened precipitously against the U.S. dollar, and dropped, on the black market, from roughly 8 to 1 (at Chávez’s death) to now 87 to 1. Maduro’s response? State intervention that has worsened matters, making it harder and harder for the private sector, on which Venezuelans rely for food, to operate.
But if you can smuggle in dollars then life there is very cheap.
Price controls are causing shortages and of course gutting the economy.
A cable news network in Venezuela, NTN24, has been taken off the air by the government because it covered anti-government protests.
Caracas is not the place to be. Read this whole story to get a sense of how much you would not want to live there.
In the serene private clubs of Caracas, there is no milk, and the hiss of the cappuccino machine has fallen silent. In the slums, the lights go out every few days, or the water stops running.
Okay Latin American commenters who think Venezuela shows the way to oppose Yankee imperialism, come out and defend Venezuela.
|Share |||By Randall Parker at 2014 February 18 09:20 PM|