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Article Artículo

Latin America and the Caribbean

Venezuela

World

Venezuela: Who You Gonna Believe, the New York Times or Your Lying Eyes?

Today’s report from the New York Times trashes the government for “combative tactics” and “cracking down” on protesters, but if you watch the accompanying video, all you see are protesters attacking police, and the police – without venturing forward, defending themselves with water cannon and tear gas.

One can criticize the decision of the government to block the march from going to hostile territory, but given the continuous presence of violent elements among the protestors, and that Venezuela is a country with a very high homicide rate and many armed civilians, it could have been the prudent thing to do. The government also believes, with some justification, that these protests seek to provoke violence in order to de-legitimize the government. Their stated goal is to overthrow the democratically elected government, and given that the vast majority of the country is against the protests, this really is their only chance of getting anywhere. And the government also knows that the media (both national private and international) will generally blame them for any violence.

In the United States, and especially here in Washington DC, you have to get a permit for marches like this, and they are often denied or re-routed; and if you try to defy this the police will generally beat you and throw you in jail. And these are actually peaceful protests here.

As for the violence so far associated with the protests since they started on Feburary 12, the statistics show that more people have died at the hands of protesters than security forces:

Of the 29 people killed (full details here),

-- 3 appear to be protesters allegedly killed by security forces; 1 other was killed by security forces but it's not clear if he was a protester.

-- 5 appear to be protesters allegedly killed by civilians (the opposition always alleges that these civilians are somehow taking orders from the government, but there has not been any evidence linking the government to any killings by armed civilians; and in a country where there are on average more than 65 homicides per day, it is most likely that these armed civilians are acting on their own).

-- 11 civilians appear to have died at the hands of protestors: four of them shot, and the rest killed by various barricades or other obstructions (e.g. motorcyclist beheaded by wire allegedly strung by protesters).

CEPR / March 16, 2014

Article Artículo

Brazil

Latin America and the Caribbean

Venezuela

World

Lula Sends Letter of Support to Maduro

Lula da Silva, the former president of Brazil, released a statement in support of Venezuelan president Nicolás Maduro on the occasion of the one year anniversary of the death of Hugo Chávez. In the letter, Lula discusses Chávez’s legacy in the region, saying that he fought for “a more just and sovereign Latin America,” and expresses his confidence in Maduro as a leader who is defending the principles of Venezuelan democracy. Of course, Lula’s message comes at a time when tensions are high in Venezuela as segments of the opposition wrestle for power after having lost two major elections in 2013.

Below is a translation, you can read the original in Spanish here.

Luiz Inácio Lula da Silva

Ex President of the Federative Republic of Brazil to His Excellency

President Nicolás Maduro Moros

Sao Paulo, 5 March 2014

To my friend President Nicolás Maduro:

I am writing to you on this sad date for the Bolivarian Republic of Venezuela to offer my vows of respect and sorrow over the death, one year ago, of the unforgettable and beloved friend, Hugo Chávez Frías.

CEPR and / March 15, 2014

Article Artículo

California and Texas: How Many Jobs Were Created on Bill Gates’ Estate?

If it’s not immediately apparent how the rate of job creation on Bill Gates’ estate is relevant to the pace of job growth in California and Texas then you have to think about the issues more carefully. In recent weeks, many proponents of low taxes have been touting the faster pace of job growth in low tax Texas compared with high tax California as proof of the economic superiority of the low tax model.

There is little doubt that Texas has seen faster job growth in recent decades. Since the business cycle peak in 1981 employment has grown by 56.0 percent in California, compared to 77.9 percent in Texas. If our only measure of economic success is job creation, there is no doubt that Texas wins the prize, but it is a bit more complicated.

First there is the issue of oil, which is important but by no means the only factor explaining differences in growth. By using 1981 as a base year, we are comparing a near peak oil price with another period of high prices. But Texas’ growth pattern does look a bit like an OPEC country. If we take the low oil price year of 2000 as the end point, California wins the job growth prize 48.6 percent to 47.1 percent. So clearly the price of oil (and gas) plays a big part in the economic performance of Texas.

However there is another very important factor in the story, building restrictions. In general, California imposes relatively tight restrictions on building, whereas regulations in Texas are considerably more lax. The result is that, relative to the size of its population, much more housing has been built in Texas over the last three decades than in California. And this has meant that housing is considerably cheaper in Texas than in California.

Just to take a couple of examples, according to the Department of Housing and Urban Development, the fair market rent for a two-bedroom apartment in Los Angeles County is $1,398 a month. In Harris County, which includes Houston, it’s just $926 a month. The fair market rent for a two-bedroom apartment in Santa Clara County, which includes San Jose, is $1,649 a month. It was just $894 in Dallas County in 2010, the most recent year available.

CEPR / March 13, 2014

Article Artículo

Latin America and the Caribbean

Venezuela

World

Venezuela: Who Are They and How Did They Die? [New]

Since February 23, CEPR has been keeping track of those who have died during the last month of protests in Venezuela. Below is the most recent available information on the location, causes and status of investigations into the deaths. This list will continue to be updated as more information becomes available. As of March 24, the list contains 37 individuals; however in some cases press reports indicate that the death was not directly associated with the protests. Never the less, as they have often been reported as such, they are included below.

There are deaths on both sides of the political spectrum. In some cases, members of Venezuelan security forces have been implicated and subsequently arrested for their involvement. Over 10 individuals have reportedly been killed by crashing into barricades, from wires strung across streets by protesters and in some cases from having been shot trying to remove barricades. Six members of the National Guard have been killed.

-         Bassil Alejandro Da Costa, an opposition demonstrator was shot, reportedly in the head, and killed in Caracas during the opposition protest that took place on February 12.

-         Juan Montoya, a pro-government community activist, was reportedly shot in both the head and chest and died. Montoya’s body was found a short distance from the body of Da Costa. On February 26, the Attorney General, Luisa Ortega Diaz, announced that 8 officers from SEBIN, the Venezuelan intelligence agency, had been arrested for their role in the killing of Da Costa and Montoya. As of March 11, 6 SEBIN officers remain in jail. President Maduro has also removed the head of SEBIN.

-         On February 12, Roberto Redman, another opposition demonstrator was also shot, reportedly in the head, and killed. The killing took place in a neighborhood in eastern Caracas. Witnesses attributed his death to armed civilians. There has been no update on the status of any investigation.

-         On February 18 José Ernesto Méndez, a 17-year-old student who was participating in a demonstration in the Sucre department, was hit by a truck and later died. The Attorney General stated that the driver of the truck has been apprehended and charged with homicide.

-         On the same day Genesis Carmona, a student and beauty queen was shot and killed in the state of Carabobo. Unconfirmed reports suggest that the she was shot from behind, potentially from within the group she was protesting with, though others contest that version of events. The government has pledged a full investigation. There have been no further updates on the status of the investigation.

-         On February 19, Julio Gonzalez, a member of the public ministry in Carabobo reportedly died after crashing his vehicle while attempting to avoid a roadblock put up by protesters.  

CEPR / March 12, 2014

Article Artículo

Economic Growth

Wall Street

A Budget that Would Make Our Economy #BetterOff

This morning, one of the largest caucuses in Congress, the Congressional Progressive Caucus, released the Better Off Budget. The headline numbers are impressive: 8.8 million jobs by 2017, and $4 trillion in deficit reduction over the next 10 years.

Budget experts and journalists have posted good summaries of the dozens of proposals in the Better Off Budget, such as investments in infrastructure and clean energy; the reversal of sequestration and other spending cuts; and funding for the long-term unemployed, rehiring of state employees, and public works and job training programs.

CEPR and / March 12, 2014

Article Artículo

Government

Workers

What Did CBO Really Say about the Minimum Wage?

Tomorrow morning (March 12), the Senate Health, Education, Labor & Pensions Committee will hold a hearing titled "From Poverty to Opportunity: How a Fair Minimum Wage Will Help Working Families Succeed." The witnesses will range from the Secretary to Labor, to a renowned economist, to a Catholic nun.

Douglas Elmendorf, director of the Congressional Budget Office, will also be testifying.  He'll likely be presenting the results of a recent CBO study on the effects of a minimum wage increase. That report generated a lot of media attention, mostly for its projection that a raise to $10.10 per hour would "reduce total employment by about 500,000 workers, or 0.3 percent."

CEPR and / March 11, 2014