Venezuela: Socialism in a Petri Dish

Santa Sanders accomplished two things during his futile attempt to wrest the nomination from Hilliary: (1) he has brought socialist theory back from the dead and (2) he has laid bare the appalling ignorance of the US college population which hasn’t a clue what socialism is or how it has performed where it has been tried.

Enter stage left (where else) Hugo Chavez the socialist authoritarian leader of Venezuela from 1999 to 2013.   The good President Chavez died at the tender age of 58 in large part because he chose to have his cancer treated in Cuba…perhaps because he foolishly believed that Michal Moore was being truthful when he raved about the Cuban healthcare system in his movie Sicko.  Even Castro has the good sense to take his ailments to Spain for treatment.  In any case to understand how socialism works we must explore the legacy of Chavez in Venezuela.

When Chavez finally reached room temperature there were some curious reactions.  Satan called a press conference to announce that he had lost a good friend.  Sean Penn, in what has to the single stupidest comment in the last two decades, suggested that the US had lost a friend and that the world’s poor had lost a “champion”.  Let me illustrate exactly how stupid Mr. Penn is.  A bell curve was developed to illustrate the level of intelligence in America.  The IQ of every citizen except Sean Penn was included in the graph.  The left end of the curve covered the higher levels of intelligence and the right end the likes of Harry Reid and other members of the two digit IQ crowd.  The average was 100.6.  Then Sean Penn was added to the data base and the entire curve shifted to the right and the average dropped to 100.3.

So how is Venezuela doing after the socialist ministrations of Chavez:

  1.  The level of inflation is reaching Wiemar Republic proportions.  In Germany in the 1920’s inflation was so bad that workers were paid at noon and at the end of the work day because the currency actually lost value during the afternoon shift.  Stamps cost 5 Billion Marks. The inflation rate in Caracas today is over 500%…the highest in the world.
  2. People are starving because the system cannot produce or distribute food to the population which is really no never mind since they can’t afford it.
  3. Unemployment is rampant despite the fact the Venezuela has one of the largest oil reserves in the world.
  4. Forced labor has become common because there is no incentive to work for worthless currency.
  5. The poor, for whom Chavez was, according to Penn, a champion, are multiplying at a rate slightly higher than those enjoying the bounty of the Obama recovery in the US.
  6. All opposition media have been shut down and Venezuela has become a one party state…no first amendment to trouble the powers that be.

This is the inevitable and foreseeable result of socialism.  It was once observed that if the USSR took control of the Sahara Desert nothing would happen for 50 years and then there would be a shortage of sand.  There is one other guaranteed result when a socialist government takes control of the levers of power.  This can be demonstrated by the following:  Who is the richest person in Venezuela?  The options are: (a) someone named Clinton or Soros; (b) a power ball winner seeking the least favorable tax jurisdiction; (c) the bureaucrat who possesses the key to the oil spigot under Lake Maracaibo; or, (d) the daughter of Hugo Chavez. The answer, of course, is (d).  This no fluke!  Every president of Mexico has left office as a billionaire and it was not the result of a high salary or frugal living.  A socialist lives on the backs of the poor despite their being “champions” of these very poor.  Explain to me one more time how income redistribution works…this is trickle (read deluge) up economics writ large.

In short, Chavez has done for the socialist brand what Obama and Loretta Lynch have done for the value of a Harvard law degree.

But alas the poor in America will have to fend for themselves now that Sanders has been mugged by Debbie Wassermann-Schultz and the DNC.

So how will Hilliary play the economics card in the election?  We are told that the Obama recovery is a minor miracle yet Hilliary describes herself as a “change agent”…to change what?  Shouldn’t she just throw a saddle on the rampaging growth rate and ride it to victory.  Sadly there is the bloviation from the DNC on one hand and, in stark contrast, the facts on the other hand.  Lowest employment participation rate since Carter.  Food stamp users up dramatically.  Obamacare has been a brake on the growth rate and suffers from only two failings…we can’t afford it and it won’t work.  The recovery rate from the recession has been pathetic and job growth anemic.  If interest rate hits 5% servicing the budget will require an additional $1 Trillion a year.  This is a nasty conundrum for Ms. Clinton because Herr Obama’s massive ego will brook no criticism.  And don’t even start on foreign relations…if she wins head for Benghazi because she won’t even try to look for you there.

The good news…Hilliary has a plan to make it much worse by proposing to increase spending by $1.4 Trillion.   And these people are the best and the brightest!

Interesting factoid: Hilliary failed the DC bar exam!  Historically at least 50% pass each year.

DNC convention highlight:  Imagine Chelsea Clinton’s surprise when she finished her encomium about the most important woman in her life and her mother walked onto the stage.

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