Tuesday, August 10, 2010

Venezuela: good news and bad

Inequality is down, says Duncan Green via. Roving Bandit. In a Latin American context, that is a very difficult feat and undoubtedly a good thing ... right?

Well, it all depends on whether we're talking about the poor getting richer or the rich getting poorer: A new study shows that "voters who were identified as Chávez opponents experienced a 5 percent drop in earnings and a 1.3 percentage point drop in employment rates after the voter list was released."

If those opponents are richer than average, that will reduce inequality without accomplishing much of anything good. If they are poorer than average, then inequality has gotten smaller despite one factor working against it.

I hate it when I doubt undoubtedly good things.

No comments:

Post a Comment