Can you explain what went wrong with the Venezuelan economy?

I have been at an economics conference today which brings the following to mind. I tend to hang out among economists who want to see the end of the basic “neo-classical synthesis” approach to the way we teach economics, which is something I dearly wish for myself. But unlike the others, I find the combination of Keynesian macro and marginal micro so poisonous to clear economic thought that my aim is to see economics move back towards the theoretical approach of the great classical economists who you can find from the publication of John Stuart Mill’s Principles of Political Economy in 1848 through to Henry Clay’s Economics in 1916.

But for those I’ve been dealing with, today’s mainstream isn’t radically left wing enough and are continuously looking to replace what we have with some kind of far-left monstrosity.

I have therefore begun to ask the question, what is there in the way you would teach economics that would assist the government of Venezuela to understand what has gone wrong in their economy? You know, they have no answer. They don’t even try to explain what great insights they have or would offer. We are in dangerous times in so many ways, and this loss of economic understanding about what makes an economy work is not anywhere near the bottom of our list of problems.

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