7thriv

Alex Tabarrock over at Marginal Revolution links to a study that tracks the effects of anti-Chavez political activity can have on one's employment (or lack thereof) in Venezuela: Chavez and the Power of the State

What the authors find is shocking, albeit not surprising. Before the recall election, petition signatories and non-signatories look alike. After the election, the employment and wages of signatories drop considerably, about a 10% drop in wages relative to non-signatories. Survey evidence conducted by the authors is consistent with retaliation by Chavez supporters especially in the form of job losses in the public sector. The authors estimate that the retaliation was so widespread, many workers were pushed into informal employment, that the Venezuelan economy was significantly damaged.

OK so it's just what you'd expect, but it's nice to see someone produce a contemporaneous economic study showing the practical effects of a thuggish left-wing government at work. For all their concern for the "People," a lot of progressive governance is dedicated towards this sort of institutionalized political revenge. When the state can give you everything, they can take it all away...

The "political activity" that led to all this misery was the simple act of signing a petition to force a referendum on Hugo's government. He won (obviously), but that clearly was not enought.