What’s happening in Venezuela?

Reuters:

Maduro said a stricter wave of inspections for suspected price-gouging would begin on Saturday in an aggressive pre-election “economic offensive” aimed at taming the highest inflation in the Americas. “We’re not joking, we’re defending the rights of the majority, their economic freedom,” Maduro said on Friday, alleging price irregularities were found in nearly 99 percent of 1,705 businesses inspected so far this month. Maduro, who has staked his presidency on preserving the legacy of late socialist leader Hugo Chavez, launched a theatrical – and often televised – wave of inspections this month to force companies to reduce prices. He says “capitalist parasites” are trying to wreck Venezuela’s economy and force him from office…

The leader of Venezuela’s main business group Fedecamaras, Jorge Roig, said this week the government’s erroneous economic policies and excessive controls risk setting up the nation for a dire 2014 of shortages and stagnation. Wall Street analysts expect growth of 1 percent to 1.5 percent this year. The government has backed off its official target of 6 percent, but has not provided a new figure. Roig accused policymakers of “improvisation” in the face of growing economic distortions and insisted that businesses nationalized in the Chavez era were operating at half capacity, while only 2 percent of expropriated land was productive. “Mr. Jorge Roig, you have just declared economic war on the country,” Maduro retorted on Friday, using the same combative tone and accusations against private enterprise common during Chavez’s 14-year rule

What tin pot dictators would do everywhere if they could — and there are apparently enough stupid people to let it happen. All is well. HT: PL

One Response to “What’s happening in Venezuela?”

  1. feeblemind Says:

    Look for similar rhetoric from Washington when our inflation shifts into overdrive. It is always the fault of the greedy private sector. It is never the fault of government printing money.

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