/, Featured, Main/Have Americans learned nothing? As Venezuelans are throwing off the chains of socialism tyranny, Americans keep voting more Left-wing authoritarians into power
Have Americans learned nothing? As Venezuelans are throwing off the chains of socialism tyranny, Americans keep voting more Left-wing authoritarians into power

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The collapse of Venezuela would provide invaluable political and economic lessons for Americans if only our media would accurately report what has happened to the country once considered to be the Eden of South America.

For instance, this week the mainstream media (MSM) is reporting that the Trump administration no longer recognizes President Nicolas Maduro but rather an opposition leader, Juan Guaidó, as interim president. 

It’s also reporting that both Russia and China have ‘warned’ the U.S. not to interfere in Venezuela’s internal politics. The MSM has even reported the fact that there is widespread chaos in the country and that it’s in an economic free-fall. 

But far less mentioned is the reason why Venezuela, with some of the world’s largest proven oil reserves, is destitute, its people dirt poor and fleeing the country by the hundreds of thousands. 

It’s a one-word answer: Socialism.

Maduro inherited a ‘socialist revolution’ from the late President Hugo Chavez, but rather than learn from Chavez’s economic mistakes, Maduro decided to continue with Chavez’s socialist economic policies which have, in turn, completely devastated the country economically and has led to the current political and social crisis.

So, what is socialism, really, and why does it fail as an economic model? According to Merriam-Webster, socialism is “any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods.” Further, socialism is “a system of society or group living in which there is no private property” and “a system or condition of society in which the means of production are owned and controlled by the state.”

One of the cornerstones of American liberty, as guaranteed by the Constitution, is private property rights, that’s a given. But what does it matter if the state — that is, the central government — owns and controls all the means of production?

Socialism destroys societies by destroying incentive, motivation, and ingenuity

In a capitalist society that promotes ordered liberty, production is driven by supply and demand. Companies — creators — develop a product or service (incentive and motivation) for which they believe there will be a demand. They set a price for this product or service based on a number of factors such as what the product costs to make or the service costs to deliver; cost of materials and supplies; and the margin of profit needed to keep the business afloat and allow its owner to earn a living.

State-owned production under socialism de-emphasizes any and all motivation to make a better product or deliver a better service because there is no competition, there is only the state. There is also no profit so there is no incentive to ‘be better’ or develop a better product or service; what’s the point of making something better and more efficient or less expensive if the government is simply going to come along and ‘acquire’ that enterprise as well? (Related: After comedian Jim Carrey goes ‘all in for socialism,’ a Venezuelan journalist schools him.)

Meanwhile, as Merriam-Webster notes, “capitalism refers to an economic theory in which a society’s means of production are held by private individuals or organizations, not the government, and where prices, distribution of goods, and products are determined by a free market.” 

One of the policies implemented by the Chavez-Maduro governments is ‘price-fixing’ — that is, the government setting of prices for products, goods, and services out of “fairness.” These prices were very often at below-market value, which caused businesses to go bankrupt, which caused a flight of capital out of the country and mass unemployment. That includes the country’s waning oil industry, on which the government depended for the bulk of its operating budget.

The socialist policies of Chavez and Maduro that destroyed Venezuela are backed by a new crop of Democrats — self-described “Democratic Socialists” like Rep. Alexandria Ocasio-Cortez (D-N.Y.). It just makes no sense at all why any American would back them.

Watch this fantastic PragerU primer on Venezuela’s descent into a socialist hell:

Read more about the collapse of Venezuela at Collapse.news.

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By | 2019-01-26T03:33:14+00:00 January 26th, 2019|Activism, Featured, Main|5 Comments

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5 Comments

  1. Renee Jones January 26, 2019 at 5:16 am

    Amen Dave-spot on; we need to fight against this progressive socialism/communism that wants to overtake America and enslave its people to the New World Ordet!

  2. Steve January 26, 2019 at 9:07 am

    It does not matter how Socialist policies may, or may not have contributed to Venezuela’s travails. No doubt they did contribute, with a great deal of help from American imperialism in order to get Venezuela’s oil and gold. But it is entirely up to the Venezuelans to decide for themselves. Russia, China and other countries seem to get it, why doesn’t the United States?

  3. Bruce January 26, 2019 at 10:21 am

    “But far less mentioned is the reason why Venezuela, with some of the world’s largest proven oil reserves, is destitute, its people dirt poor and fleeing the country by the hundreds of thousands… It’s a one-word answer: Socialism.” Really? Is this what you believe Dave? JD? You know, we have socialism in the U.S. when it suits us. In Venezuela, Maduro was elected in an election that Jimmy Carter called one of the most fair he’s ever seen. The U.S. manipulated the oil markets so that Venezuela’s oil revenue plummeted by a factor of 90%. U.S. influence with the wealthy U.S. interests in Venezuela has sabotaged the distribution networks. None-the-less, if you look at videos of Venezuela, it’s obvious that no one is starving. The inflation is largely due to U.S. sanctions (war by other means), and the U.S. has been working for going on 2 decades to overthrow a government that doesn’t comply with the will of the U.S. Imperium. You need to do some fact checking.

  4. Sgt. Schultz January 26, 2019 at 7:23 pm

    So many things I could say about this, but I think Steve and Bruce pointed out the main problem…US intervention. If our ways are so vastly superior, don’t you think ALL other countries would follow suit? Most countries could solve their own problems if we just let them do it w/o our input. Instead, we’ll declare economic war by sanctions or bomb them to oblivion and call them ‘shithole’ countries. It’s sad humans are so narcissistic…MY (gov’t, religion, race, etc) is better than YOURS!

  5. George C. January 27, 2019 at 7:12 am

    Here we go again, attempting to “fix” he problems of another country that our government caused. At the same time we, (our government) constantly complain about other countries trying to interfere into our business. America, land of the free and home of the brave, and the country who wrecks any other country who does not bow to our wishes. We are the only nation in the world who has military influence in 140 other nations. The country who “promotes freedom and democracy” to all others by force be it for our benefit. It might seem we are in competition with the new world order, as they want to take over all the same things we want to take over.

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