Strange statements from Minister Giordani. First he admits drastically, that the capitalism system works because of individual incentives. Yes, capitalism simply works, but then he seems to go on to say that his problem with it is the fact that individual profit is what motivates people, not the “common” good”
He got the most important part about basic Economics right: “People respond to incentives”. Cost and benefits determine how we behave, no communal thinking, no matter how human or generous we may be.
But then Chavez’ ignorant economic guru, who never studied economics, cites studies from last century “on”, which probably means that he only read the old ones, because nowhere in modern economic theory, Marxist or Capitalist, is oligopolic pricing and speculation associated with inflation. Least of all, for the state to participate in the markets like the Chavez Government is doing.
Inflation is just a monetary phenomenon, Venezuela and Giordani’s policies are proof of that, but Giordani has not had time to study that chapter apparently (or learn it from experience). And he never will, between screwing up Venezuela’s economy and writing his books, who nobody reads, he has no time to study.
The Devil's Excrement 