Socialism’s Latest Failure: Reflections on the Horrors of Venezuela

Craig HueyEconomics, International2 Comments

Socialism’s Latest Failure: Reflections on the Horrors of Venezuela

Bernie Sanders, Hillary Clinton, and Barack Obama have advocated for more socialism, and made it a moral imperative called “social justice”.

It’s really about pitting class against class … the haves v. the have nots … them vs. us … the rich vs. the poor.

Their promises to give something for nothing to everyone ignore economic reality and morality. No government bureaucrat should force their will on you or anyone else to make choices—good or bad.

Socialism at its core is:

  1. Economically illiterate
  2. Naively trusting, that bureaucrats and elected officials will never abuse their power
  3. Morally bankrupt, violating the rules of a free market and free exchanges of trade, which result in a better economy for all.

All of this wrong.

And Venezuela is experiencing the consequences of socialism.

The politicians promised free food … and now people can’t find any.

The politicians promised free healthcare … but now there are no doctors or hospitals.

The politicians promised that the nationalization (the government take-over) of businesses would stop high prices … but gone are the entrepreneurs, business people, and foreign investments.

The politicians promised free electricity … but now there are electric outages everywhere.

The politicians promised equality … but most of the Venezuelan people are poor and getting poorer, except for the politicians and bureaucrats. For example, the President’s daughter is getting over $4 billion.

The politicians promised a “living wage” … and now only those connected to the government can afford to live.

The politicians promised cheap oil as they confiscated 298 billion barrels of oil (without compensation) … Now oil is very expensive and imported from the United States

The politicians promised freedom … but now opposition voters are silenced.

The politicians promised economic prosperity … and now there is economic chaos with a 700% inflation rate and $130 billion in foreign debt.

So, what does Venezuela have in common with other socialist countries?

The people become poor … less free.

The politicians become rich … control everything.

Central planning of an economy fails every time because it fails to recognize that free people help build wealth.

Central planning inevitably uses the force of government to grow itself, suppress opposition, become coercive, and basically steal from those who work to give to those who don’t.

Share with me your thoughts. Email me at

2 Comments on “Socialism’s Latest Failure: Reflections on the Horrors of Venezuela”

  1. How can socialism ultimately work, or from a free market perspective, perhaps the better question to ask would be how can a socialistic society work/function ultimately? I believe it can’t. Where is the incentive, the reward to want to perform, manufacture, produce any effort if the person next to you realizes they get the same result without trying? Compound that with animosity, jealousy, eventual apathy, all while the wealth of the officials appear in tact…until one day it literally crumbles. Welfare as a hand out vs hand up is proving to be a socialist system right under our noses. “Why work if I can take what isn’t mine.” The “officials”, our leaders are in their glory. They control the innocent workers. Soon the free market people will all turn apathetic and give up. America crumbles. Know who and what they stand for before voting. Hillary at best leans socialist.

    1. Exactly Kim. As communism fell in the Soviet Union because there was no incentive to make anything or do better, socialism is just a “kissing cousin” of communism. Welfare and food stamps and other programs should have been designed, from the beginning, to be that “hand up” rather than a “handout” that they have become. We’re in a “gimme, gimme” phase of our government, and it’s going to kill incentivism. If Donald Trump gets elected, he is going to have a LOT of pruning to do. If Hillary is elected, goodbye free America!

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.