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Consumption is not investment, so exporting is not the same as being "dependant on foreign capital," Yeah they are going to make up that 43% overtime, as the economy grows.
Read the article, they arn't forcing people to take loans, they are forcing banks to offer loans, and low interest ... it's financial regulation to make sure it services the poorest in the country ... I think that is actually extremely good policy that would be good here in the US. It applies to state banks and chartered private banks (all banks are state chartered and insured, so no **** the state has a right to regulate) ... I love that, Chavez regulates the bank to make sure they offer low interest credit for low income housing and you claim "HE'S FORCING PEOPLE TO GO IN DEBT." Common now.
That isn't what I said, I said many countries ... like the US have excess capacity as a problem, i.e. tons of capital and no market, the fact that the opposite is the problem in Venezuela is a good thing, because it has plenty of space to grow.
I was responding to you talking about manufacturing capacity growth, not shortages, don't mix arguments.
Compare the balance of trade to before Chavez .... it's gotten BETTER.
Venezuela GDP Probably Grew 4 Percent in 2011 on Higher Federal Spending - Bloomberg
Non oil GDP up 4.3%, manufacturing up 3.5%, construction up 3.4%.
Better is better.
Perhaps I need to show you the chart again about where their economic growth is completely dependent on oil revenue? Cut out 43% of it, and their economy implodes. Pretty simple concept there.
Forced is forced, they are forcing investment and their investment rates are still pathetic.
You wouldn't see shortages if it has no market. Besides, that only applies if the rate of growth in capacity is too high, not if it is too low. "plenty of room to grow" really translates to "bad manufacturing policy under Chavez and therefore vastly underperforming leading to widespread shortage." It's pretty obvious that you aren't understanding your own argument.
I'll make my point again so you stop misunderstanding my argument. They have been growing, but that growth is average for the region, manufacturing growth is weak, their currency is overvalued, their investment rate is low, and any decline in oil revenue leads to a proportional contraction.