Venezuela Shows There’s No Shortcut to Economic Growth

by G.P. Manish

Venezuela has become the latest developing country to fall for the illusion that socialism delivers genuine and sustainable economic growth. It has had to learn the hard way that while socialism may boost GDP growth in the short run, in the long run it never fails to leave economic destruction in its wake.

Yet, it wasn’t too long ago that eminent mainstream economist Joseph Stiglitz spoke approvingly of the “very impressive growth” enjoyed by the country. This is somewhat reminiscent of another Nobel laureate, Paul Samuelson, who heaped praise on the impressive GDP growth in the Soviet economy in his popular textbook, predicting it would eventually overtake the United States.

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