tag:blogger.com,1999:blog-1752771132348583018.post3880492019137426833..comments2024-03-29T00:50:36.331-05:00Comments on Managerial Econ: Apologies to the Venezuelan BishopsLuke Froebhttp://www.blogger.com/profile/06832270922187297624noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1752771132348583018.post-69577922519079408882015-02-03T14:49:54.252-06:002015-02-03T14:49:54.252-06:00The challenges in Venezuela are the result of a go...The challenges in Venezuela are the result of a government project to seize control of access to food. According to the Economist, “the real source of trouble, private-sector economists agree, is price and exchange controls imposed by the government, along with nationalizations of food processing and farmland.” While the president continues to promise economic measures to alleviate the crisis, Catholic bishops “laid the blame for the crisis squarely on the "totalitarian and centralist system.”<br /><br />Investor's Business Daily notes that “the system… has failed wherever it's been tried and created growing poverty among large sectors of the population, particularly among those with the fewest economic resources.” And that “thanks to socialism, the country is falling apart. This week, UBS investment bank estimated that Venezuela had an 80% likelihood of default this year.”<br />It seems to me that Venezuela’s bishops have procured their own copy of the new edition of Managerial Economics. Why hasn’t the Venezuelan president read his yet? Bankrupting a country cannot be good for one’s political career. <br /><br />References:<br />- Empty shelves and rhetoric; Venezuela. (2015, Jan 24). The Economist, 414, 30.<br />- Venezuela's socialism is falling apart. (2015, Jan 20). Investor's Business DailyAnonymoushttps://www.blogger.com/profile/17790010074668019184noreply@blogger.com