Venezuela has been mired in a death spiral created by socialist policies for decades. This is not a rhetorical death spiral. Socialist policies have taken what was one of the great economic success stories in the world and a beacon for Central and South American nations and turned it into a poverty-ravaged nation. Malnutrition and poor healthcare have resulted in the deaths of thousands upon thousands of Venezuelans.
This result has always been perfectly predictable.
And now the government of Venezuela is taking a step back. They are turning towards privatization of their economy to help their nation recover from Chavista politics. Now a change made today can always be unmade in the future. The future for Venezuela could certainly be bright if they aggressively stepped back towards free markets.
This is just the latest example of how the solution to economic issues is free-market capitalism. Sweden started the move away from socialist madness in the late 1980s and has been bounding forward ever since. Lady Thatcher crucially set the UK free from such nonsense back then as well. France recently tried to tax the super-rich only to watch those folks take their money and their economic activity elsewhere.
Vietnam is a booming free-market economy even though the communists retain control of the government. India gradually stepped away from an overly regulated system and towards free-markets. China has made a similar shift away from a centralized economy over the last few decades. The result of this global shift towards capitalism has been a reduction in the incidence of extreme poverty.
Nothing has done more to lift people out of poverty than free markets.
Welcome to the club, Venezuealans. We hope you are here to stay.
No comments:
Post a Comment