Did Chavez reduce poverty with hyperinflation and unemployment?

Authors:
José Alberto López Rafaschieri and Luis Alberto López Rafaschieri
www.morochos.net

On last Sunday, President Hugo Chavez said his government has reduced poverty by half and that within 10 years there will be no poor in Venezuela. But considering inflation and employment, two of the most important indicators for measuring poverty in a country, we realize that the president's statement is wrong.

During the 10 years of Chavez government, inflation has remained on average above 20% annually. It means that every five years of Chavismo the cost of living has risen by 100%. Reality that every day generates more misery, and makes it harder for the Venezuelan poor to improve their status.

Parallel to the above, the anti-private sector policy of the regime has led to the closure of thousands of Venezuelan companies due to lack of clear legal conditions, arbitrary expropriation and government tax terrorism. In that sense, this anti-business plan of Chavez has helped create more poverty because it have reduced employment opportunities for employers and employees.

Therefore, the failure of Chavismo to control inflation, in addition to the government's guideline against corporations-employment, are facts inconsistent with the statement made by Chavez of having reduced poverty in ten years.

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