Thursday, June 26, 2008

"The government attacks, chases and punishes successful businesses"

Nelson Maldonado turned one year as chairman of the Council for Trade and Services (Consecomercio) and renewed the spirit of the organization to ensure respect for ownership and free initiative, and now, 'with a greater emphasis, to pursue the survival of the private sector.' Many standards, laws, guidelines and regulations have been targeted by the government at the domestic capital, 'destroying the country's producing capacity, and it has been the major hoarder and inflation generating factor.' Incoming Minister of Finance Alí Rodríguez announced that the government would reduce inflation by a moderate attack on demand and a greater emphasis on improving production. What do you reckon? It is a clever initiative, in line with the remarks of a socialist democrat such as Brazilian President Luiz Inácio Lula da Silva. He said he had troubles with inflation, particularly of food; that they had tried whatever possible solution and had failed; the only successful one had been increasing production. The head of state pointed to unbalanced supply and demand as the main inflation generating factor. Brazilians did not follow Mexico's suit, that is, freezing 150 commodities, or Argentina, that is, levying exports. The only way that has born fruit for Brazil has been increasing production. I give a great hand to the opinion of Alí Rodríguez. Some other ignorant government spokespersons argue that inflation is the result of speculation and stockpiling.



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