Free Money

Free money kills, or rather incapacitates. That is the core of Dambisa‘s argument, as she pointed out Africa got some cash, debt relief, lots of excess grain produced by subsidized western farmers for over 60+ years, and look where it got us. More people are hungry, homeless, in general leading a miserable life.

That is what Hugo Chavez, Venezuela’s US bashing, socialism loving explosive leader in part did. He gave away free money to his lower income supporters, thanks to the Capitalist system that afforded him to do so, at least for a while. Now the chickens have come home to roast; he has cut his 2009 budget by 18% or so to adjust for his $60 per barrel of oil based give away budget to about a more realistic $40 a barrel.

He probably financed good projects like roads, clinics and the likes, but doubt that adequate and sizable investments were made in education and other schemes that actually grow the economy and frees its dependency on it finite and volatile resource, oil.

Hugo would have served his country better by developing his people and making the right investments, rather than running around the world bashing America, giving away free cash to his cronies, peddling a bankrupt system, Socialism.

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