Thursday, November 14, 2013

Merry Christmas and Happy Extractive Institutions!

Surprise! Christmas came early. Or at least it did this year when Venezuela's President Nicolas Maduro declared November 10th Christmas.

Extractive state control of aluminum, iron, and bauxite factories have ultimately caused Venezuela's economy to struggle with an annual inflation greater than 45% and a government shortage of foreign currency. The country is visibly suffering, and in order to boost his popularity prior to the December 8th elections, Maduro has declared that all workers would receive 2/3 of their bonuses and pensions on November 10th. And he created a new cabinet post called the Deputy Minister of Supreme Happiness. Will the Christmas spirit be enough to boost his popularity despite the damage his extractive economy has wrought?

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