Meet the World’s Worst Economic Policies

On the one hand, “something new” is always a good idea, but all those worst economic ideas that are being applied all over the globe can make any ship go down sooner or later.

Obama Era: the Workforce of the Public Sector Must Be Cut

While almost every small government conservative considers Barak Obama a real savior of the public sector jobs, the reality is actually next to opposite. According to the latest investigations, during the recovery the public workforce has gone down to the 600 000 level – the activities that have never been experienced before. The gap in the area of public sector jobs (the difference between the actual situation within the public sector employment and how the things would go if it had grown together with the growth of the population) is almost 1.5 million. Public spending cut will bring unprecedented consequences that will result in tons of missing paychecks.

Venezuela: Disastrous Foreign Currency Control

Chávez’s government imposed the foreign currency control, fearing that the instability of Venezuela may cause a significant capital flight. Besides, its members also wanted to control the movement of people. From the time, the citizens have had to approach the government leaders to get dollars, or, as an alternative, exchange them in the so-called “parallel market”. The currency price within the “parallel market” is free to rise and fall depending on the market forces. These actions have led to the situation, when the foreign currency – US dollar – has two prices that are absolutely different. The official or legal price is the lower one, while the second price or the parallel one shows the actual value of the currency. Venezuela absurd policies led to the truly disastrous results for the country’s economy. Who knows, maybe the cancer that has struck the national leader, will bring some kind of relief to the country?

Worst Performing Economy: Macau Wins

If you consider Ukraine or Greece’s economies leave a lot to be desired, the world gambling oasis – Chinese Macau – is in the worse shape than those countries ever been into. By means of his anti-corruption campaign, president Xi Jinping has hammered the VIP gaming in the region.  The campaign organized by the president has caused a real plunge in the gaming revenue. The latter slumped 39% in April 2015 that is an 11th straight turn down.

Ukraine: the Worst Is Yet to Come

Although the country can boast of having rich mineral and farmland resources, and it could easily get the status of a leading economy within the EU, the reality is pretty gloomy.  The per-capita GDP position is set far behind such countries as Bulgaria and Serbia. Who’s the one to blame? Poor corporate governance, corruption, as well as weak contract law enforcement by courts.

To cut the long story, economic profession is a unique opportunity to upgrade the economy level of the country. However, for some political leaders it is a chance to produce and apply some zombie ideas that will lead the country directly into crisis.

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