Venezuela Economic Default Ensues
What Destroyed Venezuela?
A very common misconception about what the cause for Venezuela's destruction is oil prices. This is so far from the truth we would need the warp drive on the star ship Discovery to get there. The truth, it was socialism, it's always socialism and governments. The downfall of Venezuela had nothing to do with the price of oil, it's the only OPEC country that has fallen into default, depression, and hyperinflation. Apart from the fact that Venezuela has the largest reserves of crude oil in the world, the state-owned oil company has started importing oil. You obviously see the problem here right? As the cash cow for the state, the company was plundered for all it's cash to pay for state subsidies and social programs. This saw the sate owned company, PdVSA go from being one of the most profitable companies in the world, to where it has had to borrow more than 43 billion US dollars. Hyperinflation under the regime of president Maduro , has exceeded more than 2000% and a 80% shortage in basic goods, food being one of those.
"For those who aspire to live in a high cost, high tax, big government place, our nation and the world offers plenty of options. Vermont, Canada and Venezuela all offer you the opportunity to live in the socialist, big government paradise you long for." - Marco Rubio
The advocates of socialism would like to blame the global falling price of oil as the cause to all of Venezuela's problems. Which is pretty much like arguing with a 5 year old about where money comes from, and that it does not grow on trees. Even the most basic economics would explain that you can't spend more than you earn. Why were they spending more than they were earning? Yes, because socialism. When you tax the highest earners, as well as private corporations to death, they eventually leave or close down. When people are given money by the government, they eventually stop woking, factories close down, companies close, why do they need to work when everything is free. More importantly why would people who work be incentivised to work for only 10%-30% of their salary? These basic principals seem to be oblivious to those in favour of socialism.
The lesson of this new example of socialist failure is because it is a system based on lies, that ignores the most basic principles of the economy and destroys even the richest countries. There is no justice or morality in stealing from one person to give to another, both end up poorer or dead.
"Socialism states that you owe me something simply because I exist. Capitalism, by contrast, results in a sort of reality-forced altruism: I may not want to help you, I may dislike you, but if I don't give you a product or service you want, I will starve. Voluntary exchange is more moral than forced redistribution." - Ben Shapiro
Thanks for popping in, hope you liked the post. Please leave me your thoughts and or opinions in the comments below, have a beautiful day.
Proudly powered by ADSactly - click this image above to join our discord server - you are ADSactly
✯ ✯ ✯
I don't think this is accurate. Look at European socialism and you might find some successful examples. Take Finland, it has highest standard of living in the world. Finland has one of the world’s best education systems, with no tuition fees and also giving free meals to their students. The literacy rate in Finland is 100 percent. Several other examples exist; China has lifted more people out of poverty some 200 million. That is more then anytime in history using a socialist government.
Venezuela has had terrible corruption and awful management of their resources. I think you need to look further back to Chavez and his revolution. During Bush junior's presidency Chavez nationalized oil and took the factories from the "evil" foreigners. That immediately caused a slowdown in oil production at the same time he began looting the nation's wealth. Chavez's daughter is now a billionaire, one of the richest in their country. They had a chance to use that wealth to modernize and create an economy not based on oil wealth. Chavez was arrested in the 80's after he failed in a previously attempted coop. That was the man whom helped Maduro come to power.
Maduro is a dictator and runs the government in an authoritarian manner. He annulled their countries congress! This is far from a normal functioning socialism.
Thanks for info.
Nice post.Thanks a lot for sharing this post.
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by MorkRock from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews/crimsonclad, and netuoso. The goal is to help Steemit grow by supporting Minnows and creating a social network. Please find us in the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
If you would like to delegate to the Minnow Support Project you can do so by clicking on the following links: 50SP, 100SP, 250SP, 500SP, 1000SP, 5000SP. Be sure to leave at least 50SP undelegated on your account.
It has failed everywhere and every time it has been tried. The Plymouth colony suffered through two years of communal government and the famine that it produced before abandoning it for free enterprise and prosperity. The Literati of early America tried it and failed. The hippies of the 1960s tried it and failed. So we don't need to look beyond our shores for examples. The only difference is all these experiments were abandoned BEFORE they deteriorated into tyranny.