As Venezuela continues to descend into nightmare territory, it’s been quite odd how little the elites and their establishment media have covered the issue.
Sure, the most egregious moments have been covered, but for the most part Venezuela’s collapse has been ignored.
Why is that?
The elites are scared about the message Venezuela’s collapse sends
For a long time, the elites held up the Venezuelan government as an example of the success of socialism. They ignored the fact that Venezuela’s wealth rested fully upon the oil industry, and instead credited the Chavez regime with economic miracles in reducing poverty and increasing growth.
But as the oil money came in, Chavez was gorging himself and his gigantic government on the rest of the economy.
Nationalizations picked up pace, political loyalists were put in jobs they had no qualifications for, and the private market was systematically crushed.
That could all be covered up when the price of oil was high, but when it went down the Venezuelan economy was exposed for the fraud it truly was.
Socialism fails again
As the price of oil fell, the massive and intrusive Venezuelan state was unsustainable. Budget deficits exploded, inflation soared, and businesses started closing in record numbers.
Any relatively free market economy could have adjusted. The economy would certainly have declined, but it would have recovered if prices were allowed to guide economic decision making.
Instead, the Venezuelan government began even more nationalizations. They also began printing money.
At every step of the way, they chose to give more power to the government, instead of returning economic independence to the people.
We have common sense. We could have told anyone that an economy run on a full-blown socialist mindset would end up collapsing.
But the elites didn’t – and still don’t – want to believe it.
Even with the evidence of Venezuela’s socialist failure staring them in the face, the elites would rather hide from the true implications.
Individuals, families, and local communities make better decisions than centralized governments
Here’s the reality: The economy is simply too complicated for centralized management. There is too much information for any government official to react to, and when they try, it turns into a disaster.
However, the elites are currently pushing an economic “vision” that relies upon increased taxes, increased spending, and increased regulation. All of those things take decision making power away from us, and centralize it in the hands of politicians – precisely the wrong approach.
Venezuela represents the result of that kind of approach taken to its logical conclusion: The government controls everything, and everything falls apart. The solution, both for nations in full-blown crisis like Venezuela, and nations struggling with stagnation like Canada, is to embrace economic freedom, empowering people to make their own choices instead of imposing centralized restrictions.
But the elites are terrified of giving up control, and they’ll keep ignoring the true implications of Venezuela for as long as they can.
That’s why it’s up to us to share the truth, and make sure what’s happenning in Venezuela never happens here.