Hugo Chavez, Inflation Hawk

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"Hugo Chavez, Inflation Hawk"

File-Hugo_Chavez_photo_cut_27-06-2008

Now this sounds like a country with a bona fide inflation problem:

Hugo Chávez, Venezuela’s president, on Sunday threatened to deploy troops and expropriate businesses that increase their prices following a steep devaluation of the currency on Friday.

“I want the national guard on the streets with the people to fight against speculation,” said Mr Chávez during his weekly television show, Alo Presidente.

“Go ahead and speculate if you want, but we will take your business away and give it to the workers, to the people,” he said, stating there was no reason for businesses to raise prices.

I’m going to go way out on a limb and say this probably won’t work. Questions of democratic legitimacy aside, the Chavez experience reminds us that aspirations toward social justice will ultimately go unfulfilled absent a backdrop of workable economic policies in a big picture sense.

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