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Socialism Destroys Venezuelan Economy

Socialism Destroys  Venezuelan Economy

Harold Pease, Ph. D

Hugo Chavez proclaimed December 6, 1998, when he was elected president of Venezuela, “Venezuela’s resurrection is under way and nothing and nobody can stop it.”  At the time Venezuela had one of the best economies and highest per capita incomes in Latin America.  The lure of socialism, where the government controls and distributes most everything, overwhelmed the country.

Twenty years later three million have fled from Chavez’s “new and improved” socialism and his people are starving.  Public latrines are overflowing with urine, escalators do not work, public water systems and street lighting are not reliable and citizens eat from the public refuge.  The average citizen has lost 20 pounds in the last several months.  Today nearly 90% live in poverty and hyperinflation is nearing a million percent.  The once oil-rich country now has the appearance of being war-torn.  Socialism destroyed Venezuela.

The lure of socialism, something for nothing, first necessitates villainization of those who have.  Those who produce become the “public enemy” class.  Once this is accomplished the public, whose numbers are always the majority and poor, support the asset confiscation of those who have and produce—this usually by confiscatory taxes or outright governmental takeover. 

The prosperity class is the group that risks capital loss to fund experimentation that produces businesses that results in jobs for the masses.  When has a poor man created employment for others?  Yes they are profit motivated which sometimes makes the investor more prosperous.  That is the carrot that elevates society.  But should they miscalculate they are the most hurt.  When government makes prosperity unlikely through confiscatory taxes they quit investing.  Government is inefficient by its nature.  There exists no individual penalty for their mistakes once they are in power.  Socialism destroys the creative investment class.

Chavez was right “nothing and nobody can stop it.”  Once the productive class is destroyed it is all down hill.  Fuera Maduro, the new president, could only offer more of the same socialist remedies that have never worked where socialism has been intrenched.

Beware of politicians who wish to do “good” with someone else’s money.  They are abundant in both major political parties but have overwhelmed the Democratic Party, more especially the freshman class led by Alexandria Ocasio-Cortez, and will destroy liberty for us too.  Here is why.

Under socialism vote power favors those who want things for free: food, welfare, housing, healthcare—even free college, as they in time become the majority.  This process is accelerated, and corrupted, when politicians link government gift giving with being elected.  This has happened in America too.

As the poor, as a class, always tend to favor government intervention and thus financial favors from government to their benefit, and since all government money comes from the middle and upper classes through ever increasing taxes, (presently 47% of the adult population pay no federal income tax and a good share of these make up the non-productive class) they eventually destroy the productive base of society as government takes over more of the economy by confiscation or regulation.  The overriding principle is, the more socialism the higher the taxes and burden on the producing class.

Those who feed off the labor of others need to know what they are doing to a country by pushing for the “freebies.”  An unknown author nailed the problem when he wrote.  

“The folks who are getting the free stuff don’t like the folks who are paying for the free stuff, because the folks who are paying for the free stuff can no longer afford to pay for both the free stuff and their own stuff.  And the folks who are paying for the free stuff want the free stuff to stop.

“And the folks who are getting the free stuff want even more free stuff on top of the free stuff they are already getting.  Now, the people who are forcing the people who pay for the free stuff have told the people who are RECEIVING the free stuff that the people who are PAYING for the free stuff are being mean, prejudiced, and racist.

“So, the people who are GETTING the free stuff have been convinced they need to hate the people who are paying for the free stuff by the people who are forcing some people to pay for their free stuff and giving them the free stuff in the first place.

“We have let the free stuff giving go on for so long that there are now more people getting free stuff than paying for the free stuff.”

Ultimately voters learn that they can purchase members of Congress who will take from those who have and give it to them.  Legalized plunder.  As those who have are disincentivized to invest further, the poor class grows as does their cry for even more from those who have, thus the managerial and funding class are extinguished.  The middle class is now seen as those who have and are next to be extinguished by the increasing strength of the poor class until all remaining are poor.  This is Venenzuala now and the United States too soon if it does not change direction.

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