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- cross-posted to:
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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.
“But when the commodities boom ended, prices slumped and gas production dwindled. Now, Bolivia spends an estimated $56 million a week to import most of its gasoline and diesel from Argentina, Paraguay and Russia. Economy Minister Montenegro on Tuesday pledged that the government would continue providing fuel subsidies that critics say it can’t afford.”
We should be putting taxes on fuel, not subsidies. This is insanity.