Life Under Socialism
Hat to Arnold Kling at EconLog
Ibsen Martinez writes about life in Chavez's Venezuela and follies of his policies.
Consider breakfast. My breakfast, to be exact. It's been months since I have had an oatmeal breakfast or a nice cup of espresso with a drop of milk because coffee and milk has literally vanished from supermarkets' shelves since last November. And that includes "Mercal", the government's supermarket network where the poor are supposed to buy food at subsidized low prices
The reason? Stiff price controls, of course, and fixed currency rates that have been going on for 5 years, too.
You gotta hand it to these tried and truly disastrous policies of top down control of market forces....especially in the name of the poor and needy....oh, the irony.
Well, we can always the official spin from the Chavez regime and call it:
"comprehensive, humanist, endogenous and socialist development of the nation."
How pretty....
(pause)
a
anyway,
What all this amounts to is what Martinez calls "petropolitics"....using oil revenues to finance heavy-handed redistribution schemes.
As Martinez so bluntly puts it:
The hard fact is that, no matter how "humanist" and "endogenous" a petrostate's welfare and social policies are conceived, oil just does not create jobs.
Indeed. Extraction industries...not just oil...are great for the extractors but do little to spur growth that raises living standards and aids in the creation of a dynamic job-generating economy.
Throw in the fact that the state is the business owner and you have a text book example of a corrupt and cronyism-laden outfit that is anything but "socialistic" in even the most generous use of the term.
Yes, Chavez's warmed-over socialism is unraveling. Good thing for him that a lot of those petro-dollars (the U.S. is his biggest customers and biggest boogeyman all at the same time) have gone into a strong military and police force. Recently, troops had to quell riots when looters were breaking into the local state supermarket to steal basics that were being sold above price control levels.
How surreal. Two wrongs don't a make a right...this example is no exception.
Sympathetic left-leaning journalists are having a hard time understanding what the problem could be....my, my they never do learn, do they?
- John's blog
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Comments :
Generally speaking,
I agree that the Western press' coverage of Venezuela has often been annoying fawning - but other Western sources come across as strangely vituperative. He's neither running a paradise nor a hell, but I definitely side with the people who think that Chavez-style government is not something we'd want here.
But as for the article you linked, this literally made me laugh out loud:
Oh my god what a privileged life this guy leads - I'm sure the hearts of starving children worldwide are breaking at the mention of his espresso drought. That he expects me to sympathize with this kind of privation obscures the fact that - and I otherwise agree - government control of resources that takes milk from the grocery shelves isn't "humanist policy", it's repression. So for much of this article, I'd agree with the point, just not the rhetoric per se.
But in some respects this guy's article is representative of what I called the "strangely vituperative" writing about Chavez that comes from the other side. I groaned when I read this:
Say that again? An isolated and bloodless example of looting in a small town is reminiscent of a what? How about, simply, that looting at a grocery store is a key example of how the centralization of resources is a failure, without trying to turn it into Bloody Evil Carnage Armageddon!
Saint, n. A dead sinner revised and edited. - Ambrose Bierce
I'll say this for Hugo
He annoys all the right people. I have a lot of suspicions about him, and wouldn't be a bit surprised if he turned out to be a total %$#%, but watching the oil cartels and CIA conspirators and Cato types wet themselves over the guy is quite gratifying.
Pezman's rants on Redstate crack me up. Apparently Hugo ran over Pezman's dog on the way down to the laboratory where he invented both AIDS and heroin from the rendered brains of infants.
I came. I saw. I posted.
Veni, Vidi, Bitchy.
Free market trumps price controls
I have no knowledge of nuts and bolts of Venezuelan marketplace, but in the countries I've been to that did have price controls the way it worked was that anything that was in short supply was being bought out and sold at the flea/produce market at a premium. If the government implemented policy of controlling flea/produce markets the trade in these items moved completely underground into the "black market".
A lot of people were supplementing their incomes by queuenig for hours to purchase things in quantities they didn't need to resell or barter them for other items that were in short supply.
Chavez obviously did not familiarize himself with even a basic text on the history of socialist economy in the Soviet Bloc. But then again he didn't just appear out of nowhere in a perfectly working country where everybody was happy, well fed and well paid. I also wonder how many people in a typical 3rd world country could even afford things like espresso or milk at real prices or have a refrigerator to store the milk once they buy it or even electric service to run it for that matter.
Disgruntled intellectuals, be they on the left, right or in the middle can, for all I care, go and Cheney themselves. Common people don't care about most of the things they'd send others to die for. As long as Chavez helps them put food on their families' tables they'd have his back. His next step will probably be setting up some target for public outrage - the "them" - speculators who are responsible for shortages, CIA or Chinese or who knows what...
Sic semper tyrannis
Isnt China and Vietnam still socialized
And a lot of European countries and Russia as well?
Why are you talking only of failed socialist countries under embargo from the West?
All I can do is smile
:)
sigh
Norway, Switzerland, Europe
You got stumped?
:)
Norway
http://en.wikipedia.org/wiki/Norway
:)
sigh
You gotta hand it to these
Yeh, they really piss me off. Damn libertarians!
"They called me mad, and I called them mad, and damn them, they outvoted me". Nathaniel Lee
wow.
Owo
Competition will always produce an uneven playing field when mans productive capabilities are owned privatley. Libertarianism is merely capitalism unrestricted. Is not the current method of human economy "top down"? Is not the current method of human economy capitalist?
"oh no", you say, "people's money decides what is made, how work is valued ect ect".
BULLSH*T. The owners of wealth and materials and the ones who ultimatley decide. Those "indicators" are exactly that, indicators. They don't dictate the actions of the desicion makers. When the goal is control or other person agendas, indicators, and therefore your "they get what they pay for ideology" is b****ks. Getting rid of govt will just accelerate your nightmare senario.
"They called me mad, and I called them mad, and damn them, they outvoted me". Nathaniel Lee
Trap set. Bait taken.
thanks.
Just ironic
You see top down structures as bad when you support such a system yourself
"They called me mad, and I called them mad, and damn them, they outvoted me". Nathaniel Lee