In a message dated 3/17/2006 7:05:58 P.M. Eastern Standard Time,
[EMAIL PROTECTED] writes:
Yes -- Chavez, or rather the Venezuelans, MUST think ahead to the
future, when oil prices are going to fall and the "free ride" provided
by oil scarcity rents will disappear
Comment: The oil prices are going to fall? Why? Is the "magic" of the market
going to alter the deep geology of the fields and produce more oil so that
scarcity is eliminated? And China, India, Brazil's growth (and the ROW) is
going to come to a halt?
It is also asserted by :
Julio:> It may be my temperament, but I tend to stress the exact opposite:
The horrible thing about these oil rents is that they lead people to
complacency by creating the impression that waste is affordable."
Comment:This very condescending reasoning. It assumes that oil revenues when
invested in physical and social infrastructure are being "wasted". Julio and
you should show proof of this before making this accusation.
Then it is added by Julio with your agreement:
>If the economy is not becoming more efficient (productive) at the pace of
those leading the world market (actually, faster when you're trying to catch
up), then it's effectively losing ground." Comment:
No kidding! Speaking of tautologies! And a hare will always beat a
turtle,Zeno not withstanding"
Then,J Devine remarks:
"But in context, I was discussing the likely small impact of not having
economists on Chavez's team." Comment:
Well. if he is going to receive advices like the ones quoted above, then not
having economists is to his benefit. But, more seriously, this again a
strong assumption. Of course Venezuela has a team of very capable economists
all
schooled in the Structural economics of Ecla. No need for neo-classical
economics or expertise in the FROP theory or the transformation problem, or
thank
god!
Cristobal Senior-Ruiz
