Simple answer

Those leftist governments of Latin America. Now that times are getting harder, will they be able to continue to be leftist?

Now, the financial crisis will press them to prove they can manage and run similar policies when the cash isn\’t flowing into their pockets. Venezuela will get less for petrol, Brazil, Argentina and Uruguay won\’t receive as much from soy and other agricultural exports and Chile could have trouble if copper prices and demand falls.

In the end, the crisis could serve to separate those governments that are committed to change from those who have either jumped onto the progressive bandwagon only for the ride or are so shallow that they will crumble when the first strong winds start blowing against them. Those who continue to treat the fight against inequality as the cornerstone of their policies will probably be called the true Latin American left.

Given that Argentina has already nationalised private pension plans in an attempt to pay the foreign debt, I think we can safely say that no, those who have been following these alternative economic policies won\’t be able to continue to do so.

As the man once said, heterodox economics seems to have higher costs than non-heterodox economics.

3 thoughts on “Simple answer”

  1. Argentina will find a way to screw up the economy. That is certain. Labels such as “left”, “right”, “progressive”, “fruitcake”, and “mushroom” have little relevance.

  2. According to friends of mine in the real estate business, there is still strong demand here in Costa Rica for property, both commercial and residential. You need a machete to fight your way through the throngs in the shopping malls. It may all come horribly unglued, but thus far there’s little sign of it. The average Tico is four or five times wealthier than the average Nicaraguan.

    Oh, but the silly Costa Ricans forgot to elect a Marxist.

  3. According to Richard Gott at The Guardian, Venezuela and the others are doing marvellously well, and all it takes is one more heave and the running dogs of Washington will be vanquished!

    One more heave, I tell you.

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