Filed under: Bureaucracy, Crime, Economy, History, News the Media Doesn't Want You to Hear, Progressives, Socialism | Tags: Former President-for-Life Hugo Chavez, Senator Bernie Sanders, The Collapse of Venezuela
( A food line in San Cristobal, Venezuela)
Bernie Sanders is out in the hustings talking about banning fracking, the new way of producing oil and natural gas that has brought down the cost to consumers so dramatically. In Venezuela, the price of oil, Venezuela’s only significant export, has plummeted which means that government income will probably be down by around 40 percent this year. A disaster for this socialist paradise.
The government’s massive borrowing—a legacy of the days when oil prices were far higher, is blamed, but specifically, the lingering death of a beautiful country can be blamed directly on socialism. You will notice that the reporting on the decline and death throes of Venezuela seldom contains any mention of socialism. It is undoubtedly not on the list of approved talking points. They’re having trouble repaying their foreign debt. On top of that there has been a drought, which has meant trouble for the country’s hydropower generation, which in turn has meant that power is only available part of the time. It’s back to candles if you have any.
The Manhattan Contrarian has been checking left-wing websites: the Huffington Post has a post titled “Why Venezuela is on the Verge of Actual Collapse” on May 20. Five reasons are given: 1. Murder—lots of murder; 2. Low oil prices—not always a good thing; 3. Plummeting economy; 4, Scarcity of essential goods; 5. Widespread corruption.
I particularly like reasons 3 and 4. The economy is collapsing because the economy is collapsing! Why hadn’t we figured that our on our own?
Socialism is unmentioned, though anybody with any knowledge of history has a long list of collapsing economies due to Socialism. It’s what economies that turn to socialism do. I guess you can’t run around badmouthing socialist systems when your presidential candidates seem to think it’s the answer to something or other.
It is, of course, the answer to government control of everyone. Every Progressive has dreams of becoming Ceasar Chavez, or Fidel Castro, or Pol Pot — becoming fabulously rich and being in charge of everything.
Zero Hedge talked to Fernando Aquirre who recorded the hyperinflation in Argentina in 2001, and has followed the story of other collapsing economies.
The greatest points to keep in mind is overwhelming corruption. People get lost on what exactly went wrong in Argentina, in Venezuela, or what’s happening right now in Brazil. What they all have in common is that the people in charge had no real interest in doing things right; they really didn’t care about destroying the country. They just cared about filling their pockets as much as possible.
Think of Venezuela this way: you have a country where water is more expensive than gasoline. What sense does that make? I mean, you had Hugo Chavez walking down the street pointing with his finger saying “Nationalize this. Nationalize that”. And when he was saying “nationalize”, he was saying “Steal this“. He didn’t have any great plans or political grandeur going on in his mind. He just wanted to steal as much as he could.I know for a fact that they’re slaughtering one another in the streets right now in Venezuela. For at least three years it’s been a case of out-of-control crime and corruption over there. It’s not getting better any time soon unless something changes on a deeper level.
It’s not just that there’s no toilet paper. There’s no medicine, and those dependent on medicines are dying. The middle class person who still has a good job would need two years of wages to pay for a single plane ticket out. Aguirre said that if he was in Venezuela right now he would leave on foot, any way he could. And we have college students who think socialism is a great idea, and ‘feel the bern’ for Bernie.
Here’s economist Thomas Sowell with “Socialism for the Uninformed”
And law professor Glenn Reynolds: “Don’t Be a Sucker for Socialism“
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