Bolivia engages in pernicious high consumption and public spending that leads us nowhere!

El Diario reports:

Economist observed high consumption and public spending

Screen Shot 2015-11-26 at 8.12.14 AMFor economist José Gabriel, in an article entitled “Errors in the Ministry of Economy,” published in a newspaper of Cochabamba, he said that the model is based on the incentive to aggregate demand (consumption), mainly driven by strong public expenditure, both investment and consumption, and that it is possible to hold, thanks to the extraordinary increase in income from gas exports.

He recalled that 2005, was paid just over $1 dollar per million BTU’s exports, while in 2014, was paid almost $9, and in both cases the same method was used to determine the price.

“Now, even when it is clear that the cycle of high prices is over, the Government continues to promote a system based on public expenditure growth, which has been reflected in strong debt that is being planned to acquire, and although this can cause serious imbalances in fiscal accounts, it is not the main problem,” he said.

Keynes would be upset to see how this demagogue government uses public spending. State-owned enterprises failures, higher levels of governmental corruption, luxury items for the use of the president will never bring growth to a nation.

If we add higher smuggling and narcotrafficking efforts, and see how anarchy is undermining civility in Bolivia, we must conclude to get rid off this caudillo once and for all, let’s say NO to his damn re-re-re-re election!

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