Across what was once South America’s second-largest producer of natural gas, everyone is searching for fuel.

Summary

Bolivia faces an economic collapse due to a fuel shortage, foreign currency reserves depletion, and rising inflation.

The crisis has led to protests, food shortages, and a decline in the government’s popularity.

The government’s denial of the problems and its handling of the situation have further exacerbated the situation.

  • @ParagoneEnglish
    2•10 days ago

    Your insight that taxes need to be corrected gradually is right.

    Technically, each economy would have its own powerlaws for correcting taxes, regulations, etc, so in 1 economy it would be something like…

    The current tax on this is a%, the all-future-costs-included tax, which makes the creators-of-those-costs pay them up-front, is b%,

    so this year we’re changing the tax from a% to (( 5 * a ) + ( 1 * b )) / 6

    or something like that…

    Always tending towards the correct rate…

    That rendition would give 6y for reaching equilibrium.

    The more-agile the economy, the quicker it could calibrate to truth…

    The political reality, however, won’t permit that, will it?

    _ /\ _

    • @[email protected]English
      1•10 days ago

      Maybe? I readily admit that voters generally don’t think very far ahead and this stuff isn’t an easy sell, but every once in a while a leader does manage to successfully make the argument that we should accept some amount of short term pain in exchange for a greater benefit in the long term.