They Asked For Equality – They Got Misery

Socialist Venezuela is a complete disaster. The people voted themselves a share of the wealth. They are now getting the misery.

[Venezuela’s] economy shrinks 10 percent one year, an additional 6 percent the next, and inflation explodes to 720 percent. It’s no wonder, then, that markets expect Venezuela to default on its debt in the very near future. The country is basically bankrupt.

That’s not an easy thing to do when you have the largest oil reserves in the world, but Venezuela has managed it. How? Well, a combination of bad luck and worse policies.

“Throughout history, poverty is the normal condition of man. Advances which permit this norm to be exceeded — here and there, now and then — are the work of an extremely small minority, frequently despised, often condemned, and almost always opposed by all right-thinking people. Whenever this tiny minority is kept from creating, or (as sometimes happens) is driven out of a society, the people then slip back into abject poverty. This is known as ‘bad luck.’” Robert Heinlein

“Concentration of wealth is a natural result of concentration of ability, and recurs in history. The rate of concentration varies (other factors being equal) with the economic freedom permitted by morals and the law… democracy, allowing the most liberty, accelerates it. — Will and Ariel Durant

The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.- Winston Churchill


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22 responses to “They Asked For Equality – They Got Misery”

  1. captain*arizona Avatar
    captain*arizona

    the drop in oil prices might have something to do with it. also columbia next door ameriKKKa’s client states economy is based on cocain and american handouts. honduras el salvador guatamala are exporting their children here only nicuragua who reagan and his drug dealing contra’s were not able to defeat keep their children. columbia has american goods but the people have no money to buy. while the people of venzuela have money but american good are mysteriously unavailable.

  2. Man Mountain Molehill Avatar
    Man Mountain Molehill

    These suckolist economies always suffer from bad luck, bad harvests, wreckers sabotaging the latest 5 year plan, bad whatever. Wonder why that is?
    (how many times did we sell cheap wheat to the Soviets, 3, more?)
    Meanwhile, the latest inflation rate from Venezuela is 400%. This is hyperinflation territory, watch for the the inflation rate to rise exponentially as the government tries to print new money faster than it devalues. See “Money Mischief” by Milton Friedman to see this in action in multiple historical cases, good graphs make the exponential nature clear. Think of it this way, the rate of increase of currency has to continuously have a faster slop than the rate of devaluation to keep ahead, this is consistent with a function which is its own derivative, an exponential. fun to watch happen to somebody else, not so fun to live through.
    Friedman also says that these hyperinflations always lead to economic and political collapse followed by a revolution and/or dictatorship. Lots more historical examples beyond the usual Weimar/Hitler one.

  3. CapitalistRoader Avatar
    CapitalistRoader

    Cap’n, as I recall Danny Ortega won his first election ’84 but lost in ’90, ’96, and ’01. The main grudge the Nicas had against Danny was his seizure of private land worth millions and even billions of dollars. But the Good Communist didn’t turn over this property to The People. No. Instead he turned it over to his good buddies in the FSLN. Oh, and he took a big chunk for himself.

    As a result Danny currently has a net worth of $50 million. But that’s peanuts. Hugo Chavez had a net worth of a billion bucks when that old Commie kicked the bucket. Which is right about where old Fidel clocks in.. Weird, huh? All these commies pledging to be The Peoples’ Savior stashing away the big bucks.

    At least old Bernie is a true Man of the People. He was a pretty much a bum until he landed that sweet gummint job when he was 40-years-old. But even then Bernie couldn’t manage his money. The only assets his has is his pension when from he was mayor of Burlington. But one has to balance that against his $65 grand in credit card debt.

    Yeah, he’s a financial genius, that Bernie.

  4. captain*arizona Avatar
    captain*arizona

    molehill, road kill that doesn’t explain why the capitalist drug dealers in columbia guatamala honduras and el salvador. they tried fried mans austrian crap in iraq after bushithead took it over and you see how well that worked out!

  5. Man Mountain Molehill Avatar
    Man Mountain Molehill

    Absent the drug war how much is heroin worth i a free market.I’m guessing a few dollars an ounce, it’s not hard to make. If you want to rip the guts out of these drug lords legalize; their whole profit base goes away.

  6. Frank Avatar
    Frank

    M.Simon:
    Almost 5 years ago you posted a piece here called The Old Order Is Breaking Down in answer to a question from me. It received wide circulation including a link from Glenn Reynolds.
    http://classicalvalues.com/2011/02/the_old_order_i/

    Care to update that? It seems to me we are on the edge in this country now, with Trumpism being the latest sign of an impending break down.

  7. Simon Avatar

    Frank,

    Thanks for the reminder. You are correct. This year looks like a settlement year. Much of the excess will be revalued. Something we didn’t do in 2008.

  8. captain*arizona Avatar
    captain*arizona

    as usual you can’t answer why capitalist columbia guatamala el salvador honduras are doing worse the venzuela nicuragua. for your theory on venzuela to work you must ignore all the capitalist countries in the region doing worse.

  9. Man Mountain Molehill Avatar
    Man Mountain Molehill

    Great example. All of Latin America is a shithole.

    I would never be so gauche as to suggest that this state of affairs has anything to do with Latin America being full of Latinos. Never that. It’s something else entirely, probably Moon Martians from outer space corrupting their precious bodily essence or something…

    Thought experiment:
    Overnight swap the entire population of the US and Mexico, leaving the infrastructure in place. In 10 years which nation will be a rundown, collapsing but brightly colored slum, and which has a thriving, world-class economy?

  10. CapitalistRoader Avatar
    CapitalistRoader

    MMM, having traveled to a few Central and South American countries, I would hardly describe them as shitholes. The Nicas in particular are decent, hardworking people and Nicaragua is a pretty nice place. Nicas voted idiot commie Danny Ortega out of office when it was clear that he was a run-of-the-mill corrupt commie. But, like the US Sanders/Trump populist idiocy, a new generation came along and they are young and stupid so they voted Danny back in. Free shit, et al. Plus Catholicism. It seems to me that Catholics are used to and yearn for a strong “big man” leader, like the Pope, whereas Protestants are used to distributed leadership like the US’s constitutional republic. But I could well be full of crap.

  11. Man Mountain Molehill Avatar
    Man Mountain Molehill

    The history of Latino America is revolution followed by insane dictator followed by revolution followed by civil war followed by social and economic collapse followed by yet another dictator, with an occasional election here and there for seasoning. Some places and times have been not so bad, but it’s never stable.

    Chile is the best counter example, democratically elected government, GDP per capita $23,000 (almost European), growing economy. Ever notice it’s only “right wing” dictators who relinquish power voluntarily? (Pinochet, Lee Kuan Yew, Chiang Kai Shek, Park Chung-hee, Franco)

    Back in the 80s I worked with a Venezuelan engineer. He was proud that Venezuela had been a democracy since the 50s. Since then Hugo Chavez led an unsuccessful coup, spent time in jail, then ran for president and won, twice, under suspicious vote counting, and finally accomplished his main goal, complete destruction of the economy. The feel good story of the century, poor boy overcome vast obstacles, finally rises and succeeds in his Calling, the complete subjugation and degradation of an entire nation. 4 thumbs up, – Popskull and Egret

    The problem with suckolism isn’t just that you run out of other people’s money, it’s that you are ruled by idiots like craptain zonetard.

  12. CapitalistRoader Avatar
    CapitalistRoader

    MMM, Commie Danny Ortega did relinquish power after the 1990 election. Chiang Kai-shek died as a dictator…he never relinquished power.

    But these are exceptions. Hugo died in power and now his chosen successor Maduro is fighting like hell to maintain his dictatorship. Fidel relinquished power to his brother, fer Christ’s sake. And then you have the pudgy, baby faced, sadistic Kim Jong-un.

    The far-left and far-right love these strong men. My pet theory is that they have daddy issues, hence the popularity of Bernie and The Donald.

  13. captain*arizona Avatar
    captain*arizona

    speaking of crap, rafael crud the canadian sociopath is now threatening republiscum voters with mailer if they don’t vote for slimo they will be put on his “list” to be sent…

  14. Gringo Avatar
    Gringo

    arizon
    the drop in oil prices might have something to do with it.

    Yes, the drop in oil prices is a factor, but the growth in Venezuela’s economy was lagging behind others before the price of oil dropped. In 2013, the export price for Venezuelan oil was around $100/BBL, so any problems with Venezuela’s economy in 2013 couldn’t be blamed on the low price of oil. Chavez was elected in 1998- a year when Venezuela sold its oil at around $10/BBL- and took office in early 1999. 1998 data will show what Chavez inherited. How did Venezuela’s economy perform compared to other countries?

    GDP per capita, PPP (constant 2011 international $)% increase 1998-2013

    Latin America & Caribbean (developing only) 32%
    Colombia 44%
    Venezuela 15%

    Even with an oil bonanza, the economy of Chavista Venezuela didn’t perform well compared to other countries.

    Chavismo trumpets great accomplishments for the people. Let’s give a cursory look at health care, which Chavmismo informs us has been greatly improved with the Misiones and the Cuban doctors.

    From 1998 to 2013, Venezuela’s Life Expectancy went from 8th in Latin America to 11th. Looks like the Misiones and the Cuban doctors didn’t perform as advertised.

    World Bank Development Indicators.

  15. CapitalistRoader Avatar
    CapitalistRoader

    Wonderful things happen when you kick out the kommies.

  16. Man Mountain Molehill Avatar
    Man Mountain Molehill

    Venezuelan GDP is -4% for 2015. That’s “growth” the same way the choco ration has been increased from 12 grams to 8.

    Ghod nose if the norks even have an economy.

    OK, my bad, Cash My Check died in office, but the ROC has a thriving democracy now.

  17. Man Mountain Molehill Avatar
    Man Mountain Molehill

    Interesting that in Chinese “tong” can mean a criminal gang or a political party. I don’t know if that’s a cynical reflection of reality or a historical leftover, like the old proverb: win and you’re the emperor, lose and you’re a bandit.

    Kick out the Kommies, and Kick out the Jams.

  18. Man Mountain Molehill Avatar
    Man Mountain Molehill

    Sometimes strongmen do good. Think Pisistratus or Solon. We are in a hole that con’t be dug out of, $16 trillion debt and rising, Black Lies Matter, out of control government etc. And the constitution doesn’t provide for a corrective.

  19. captain*arizona Avatar
    captain*arizona

    gringo how much of columbia 44% is selling dope to americans??? what about guatamala honduras el salvdor growth rate from drugs and selling off their children.

  20. Man Mountain Molehill Avatar
    Man Mountain Molehill

    Legalize drugs. Bring a billion dollar industry into daylight, let Columbia compete with el Salvador on the quality of their Peruvian Marching Powder. (they call heem ‘el Nariz de Vacio’ The vacuuming one…Even Juan Valdez needs a bump… We put the coke in your cola…Have a line and a smile…)

    Remember how much more fun life was in the 80s? Riiiight.

  21. Gringo Avatar
    Gringo

    gringo how much of columbia 44% is selling dope to americans???

    Cocaine production hasn’t disappeared in Colombia, but the trend has been down, not up. Cocaine production appears to be down in recent years compared to the late 1990s. Under Uribe, the government gained ground against the FARC. As the FARC was doing a lot of the cocaine production and trafficing, that reduced cocaine production. Colombia is safer currently than Venezuela, which is a reverse from what it used to be.
    From a link at Wiki:US: Peru overtakes Colombia as top cocaine producer.

    “Potential production of pure cocaine in Colombia is down to 195 metric tons (in 2011) from 700 metric tons in 2001, the lowest production potential level since 1994 and the first time since 1995 that Colombia is producing less cocaine than either Peru or Bolivia,” Kerlikowske said in a speech at the Center for Strategic and International Studies.

    From 1998 to 2014, Manufacturing, value added (constant 2005 US$) is up 40% in Colombia, compared to 37% for Latin America.

    Fuel exports- mostly oil but also some coal- increased from $3.3 billion in 1998 to $41 billion in 2013. [current dollars]. Like Venezuela, Colombia has been and will be affected by the fall in the price of oil. Unlike Venezuela, Colombia’s economy has been managed reasonably well, so it will weather the oil drop better.

    This shows that Colombia’s increase in income from 1998 to 2013 was based- or nearly all based- on legal activity.

    World Bank:
    Fuel exports (% of merchandise exports)
    Merchandise exports (current US$)

    Same link as my above comment

    https://en.wikipedia.org/wiki/Coca_production_in_Colombia

  22. Gringo Avatar
    Gringo

    arizona
    as usual you can’t answer why capitalist columbia guatamala el salvador honduras are doing worse the venzuela nicuragua.

    Colombia versus Venezuela. For the last century or so, the answer has been rather simple: OIL. However, recall the statistics I previously cited:
    GDP per capita, PPP (constant 2011 international $)% increase 1998-2013
    Colombia 44%
    Venezuela 15%

    Venezuela has had the third lowest income growth per capita in Latin America from 1998-2013.

    Country Name 2013 vs 1998
    Panama 95
    Peru 76
    Dominican Republic 62
    Costa Rica 54
    Chile 48
    Colombia 44
    Uruguay 43
    Nicaragua 41
    Bolivia 37
    Brazil 36
    Ecuador 33
    Latin America & Caribbean (developing only) 32
    Honduras 32
    El Salvador 27
    Paraguay 25
    Guatemala 18
    Venezuela, RB 15
    Mexico 14
    Haiti -6

    In general, the freer the economy, the higher the growth in per capita income in constant dollars [PPP].