Friday, June 13, 2014

The World Economy - Brazil

A few years back the buzz in the business world was all about Brazil. That is not the case today. As the world focuses on Brazil for the World Cup, I wonder what happened to this high performer over the last few years? GDP growth has stalled and inflation is up over 10%. Why is it that so many South American countries have such inflation problems? Is it because they can't help but start printing money every chance they get? I also wonder if socialism is the problem? The more that government gets involved in the private sector, the worse things get. The only countries who have made socialism work are Germany and the Scandinavian countries. Why is that? Every other country has eventually run out of money and either borrowed to much or started printing too much money to pay for all the promises that were made. I think Margaret Thatcher was right when she said that the problem with socialism is that eventually you run out of other peoples money.

What do you think?