Like any Ponzi scheme, socialism provides an initial illusion of success before it collapses on its own faulty principles. It’s that brief illusion that can make socialism so seductive to many who feel they are missing out on life’s abundance. Equality seems like a nice step up. The problem was very simply summarized by former British Prime Minister Margaret Thatcher: “Sooner or later, you run out of other people’s money.”
Venezuela, socialist mentality has destroyed the once prosperous nation, adding another example to the long list…
If the world is to experience another renaissance, it will come through capitalism.
For those who forget the basic flaws inherent in socialism, Venezuela provides a graphic reminder. It was once the fourth-wealthiest country in the world. Now, people are starving to death due to lack of food. It still has one of the world’s largest oil reserves, but it lacks toilet paper.
Venezuela’s socialist experiment began in 1999 with then-president Chavez, who nationalized industries and overspent on social programs. Chavez and his successor Maduro racked up unprecedented national debts it probably will never be able to repay. The country is being flung into a downward spiral of hyperinflation and out-of-control debt. The people suffer misery equally, while President Maduro and his fellow autocrats enjoy the remaining spoils. What will happen to the autocrats when everything has been looted and there is nothing left? Maduro no longer makes any pretenses at democratic rule as he erodes basic rights and silences opposition and the free press.
Venezuela is the latest failure in socialism. Will American millennials and eager advocates of a socialist regime learn a lesson? It remains to be seen. But if they have their way, who will be left?