As Venezuela collapses around him, Venezuelan President Nicolas Maduro won’t even be able to dry his tears. Kimberly-Clark – owners of Kleenex and Huggies, is shutting down its Venezuela factory.
Maduro is not happy about it.
As reported by Bloomberg, “Forty-eight hours ago, without notice, a U.S. company called Kimberly-Clark, violating national laws and the constitution, fired almost 1,000 workers from its production plant, closed the door and left the country,” Maduro said on state television. He added that the government would support the workers now in control of the plant.”
It’s nearly impossible for any business to operate in Venezuela. Massive inflation and shortages of nearly everything makes the environment completely unsustainable. Maduro’s reaction is typical and shows why Venezuela is collapsing in the first place. Instead of letting the market function, Maduro – and Chavez before him – tries to control everything and attack anyone who disagrees.
The level of incompetence and corruption in the Maduro regime is shocking: The country with the largest oil reserves on earth now has a shortage of toilet paper and food. Maduro can rant as much as he wants, but until he understands even basic economics, things will get even worse.
Business isn’t magic. If a company can’t afford to operate it will shut down. Kimberly Clark isn’t the first, and won’t be the last company to close up shop in Venezuela.
Photo credit: Diariocritico de Venezuela https://creativecommons.org/licenses/by/2.0/