Friday, October 18

Venezuela approaching economic crisis. But it can't happen here, because...

"Foreign Policy" magazine predicts that Venezuela is about to crash.  Their socialist government has ruined pretty much every aspect of the nation's economy.
Inflation is soaring, and basic staples are increasingly harder to find. Electricity blackouts are frequent, and crime presents an enormous problem for citizens and companies crazy enough to do business there.
The problem for Venezuelans is that their government has no clue as to what to do. …
Venezuela’s persistently high inflation has several root causes. Because of repeated elections and populist tendencies, the government continues to spend much more than it earns via taxes. Since it has few options to finance its deficit, it has been forced to devalue the currency twice this year, and this means producers – who mostly rely on imports to supply the market – are forced to pass this on to consumers.
Taming inflation would require the government to order their finances, but the administration seems reluctant to do so. For example, according to government sources, giving away gasoline for (practically) nothing costs Venezuelan taxpayers $24 billion in direct subsidies and lost revenues. This amount represents roughly a quarter of all spending included in the 2013 budget. But regardless of how dire the situation is, the government refuses to consider decreasing subsidies because it is fearful of a public backlash.
Let's see here:  Government continues to spend much more than it takes in.  Check.  Huge and costly subsidies to "the poor."  Check.  Government refuses to cut these subsidies because it wants to stay popular.  Check.

Gosh, this sounds SO familiar.  Where have we seen these things before?

But don't worry, citizen:  Other socialist regimes may go thru rough patches but nothing similar can happen here in the U.S.  Barack's regime can continue to spend 30 percent more than it takes in forever, with no adverse consequences, because Obama.

See, deficits are only bad when a Republican is president.  With Obama in charge, the normal rules of economics simply don't apply.  It's sorta like "laws"--they apply to Republicans but not to Democrat presidents, who can simply "waive" them and carry on as if nothing was amiss.

If you don't believe there's a double-standard about deficits, look at the NY Times or WaPo:  They were all over G.W. Bush about a deficit of $400 billion, but have no problem at all with King Barack running a deficit three times larger.  Because Obama.

Ah, socialism!  Is there nothing it can't do?  And now, with the gummint running health insurance--and forcing you to buy it or have any tax refund seized by the IRS--everything will be even better!

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