Monday, April 11, 2016

Venezuela

Socialism does not work. Venezuela is a classic case. Government services have collapsed. In the morgue there are so many bodies and not enough personnel that bodies are stacked and rotting. The government has made every Friday a holiday because they can't afford to pay the workers nor the use of electricity. The stores are empty of goods. Venezuela also has the highest murder rate in the world. Water is rationed, electricity is rationed. Inflation is over 700%. Essentially Venezuela has run out of money.

How can a country with one of the largest oil reserves collapse into chaos and mayhem? Simple, socialism. You have to have a healthy private economy to pay for whatever the public sector wants to do. If you kill off the private sector, you run out of money. Socialism is all about increasing the public sector at the expense of the private sector. Eventually the public sector grows too big and you have what is happening in Venezuela, societal collapse.

Unfortunately our country is currently on the same path. If Bernie Sanders or even Hillary Clinton is elected, it will only happen faster. I am not so sure that electing any Republican would make much of a difference either. Maybe we are past the tipping point and we will all be like Venezuela in just a few short years? The truth is that only a private, free market economy works in the long run. It is not perfect and it is not entirely fair, but it is the only thing that works.

What do you think?