Does anybody remember this from a couple months ago? Venezuela's economy was imploding, and Maduro, the socialist president, declared that more socialism (and jailing the "exploiters") would solve their problems?Nicholas Maduro said:For those that underestimate me, I say I’m a socialist and I know what I’m doing.
How's that working out lately?
Ah, the de facto military junta theory of economics, because the leaders of an organization that demands what it wants supplied, and jails those who fail to comply, knows all about economics. Sadly predictable, but certainly no condemnation of socialism, right?Venezuelan President Nicolas Maduro is turning to an army brigadier general to run the economy, two months after using troops to control prices and slow the world’s fastest inflation.
Rodolfo Marco Torres was named finance minister yesterday, replacing Nelson Merentes, whose attempts to improve relations with businessmen failed to prevent inflation doubling to 56 percent during his nine months in office. Merentes will return to head the country’s central bank, Maduro said in a state of the nation address to congress.
Active or retired officers now control a quarter of Maduro’s cabinet as he looks to shore up their support after the death of former President Hugo Chavez, according to Rocio San Miguel, president of Caracas-based security research organization Citizens’ Control. Their increasing role indicates greater state involvement in the economy and prompted bonds to fall to a six-week low today.
So how's he gonna fix it?
Yeah, that oughta do it.The government will impose a maximum 30 percent profit margin across all industries via a presidential decree today, and the country will work to reform its currency distribution system this year, Maduro said. The official exchange rate of 6.3 bolivars per dollar will remain, he said, even as the black market rate tumbles to 74.
This is what happens when you decouple the economy from the pricing system through government meddling, as we've now known for at least seventy years.