Economics/Class Relations

Why Did Venezuela’s Economy Fail? Socialism or Sabotage?

Thomas Sowell says socialism.

By Thomas Sowell

Investors.Com

Opposition protesters shout out "Maduro" during a demonstration demanding the government pursue a referendum to recall President Nicolas Maduro, in Caracas, Venezuela. Americans enamored with the soft-focus socialism espoused by Bernie Sanders are deluded into thinking socialism works. It has never worked anywhere, as Venezuela tragically illustrates. (AP)

Opposition protesters shout out “Maduro” during a demonstration demanding the government pursue a referendum to recall President Nicolas Maduro, in Caracas, Venezuela. Americans enamored with the soft-focus socialism espoused by Bernie Sanders are deluded into thinking socialism works. It has never worked anywhere, as Venezuela tragically illustrates. (AP)

Socialism sounds great. It has always sounded great. And it will probably always continue to sound great. It is only when you go beyond rhetoric, and start looking at hard facts, that socialism turns out to be a big disappointment, if not a disaster.

While throngs of young people are cheering loudly for avowed socialist Bernie Sanders, socialism has turned oil-rich Venezuela into a place where there are shortages of everything from toilet paper to beer, where electricity keeps shutting down, and where there are long lines of people hoping to get food and complaining that they cannot feed their families.

With national income going down, and prices going up under triple-digit inflation in Venezuela, these complaints are by no means frivolous. But it is doubtful if the young people cheering for Bernie Sanders have even heard of such things, whether in Venezuela or in other countries around the world that have turned their economies over to politicians and bureaucrats to run.

The anti-capitalist policies in Venezuela have worked so well that the number of companies in Venezuela is now a fraction of what it once was. That should certainly reduce capitalist “exploitation,” shouldn’t it?

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1 reply »

  1. soft socialism does not require government to run the economy. It promotes using government resources to benefit the people. This is in place in several European countries. It does not have to run the entire economy

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