
The capital has been demonized to such an extent that by mentioning the word "capitalism", seemed to speak of something bad, tragic or devastating, unlike socialism, it feels a little more protective and friendly.
Well, no I can certainly say that he has settled in somewhat the problem of poverty is specifically capitalism. The capital, money, knowledge has been revolutionized and has gotten into the market of poverty to go laying the foundations of a better future and a better quality of life. Contrary to the State quite often intervened with terrible and devastating events that a people impoverished. Clear are examples: military and democratic governments of Alan Garcia, with its interventionist policy in 1985.
be understood that the engine of a market economy is not the state. Who produce goods and services is the market and many times the state wants to do what he does the latter. It happened in the Garcia government, turning the state into an agent or consumer spenders, to the point that they no longer had assets in the market to buy. This type of populist policies, are very good and effective in the short term but ultimately hurt and much damage especially to the men and women with fewer resources. Having an excessive expenditure by the Government, which runs out of money in its coffers, begins to make money without a productive back. And when offered more money to the resident, it will have much in their hands, but have no products to buy. That's why salary increases are not as well regarded as a good state policy. Rather if we do that, you have to flirt with the market. That is why inflation is the percentage change in prices are important to consider it. Our country and by 2008 had an accumulated inflation of 6% in contrast to Venezuela, which was 30%. We must understand these terms then when inflation, our real income decreases. That is what we found before with a certain amount of money at a price (P0) now I can not buy at a price (P1 with inflation), with the same income level. Therefore, I become poorer.
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