this post was submitted on 28 Nov 2024
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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.

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[–] Paragone 2 points 4 weeks ago (1 children)

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] 1 points 4 weeks 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.