The Bolivarian government of Venezuela is constantly said to be a communist, Marxist or especially socialist government. In fact, it is none of those things. The country has a capitalist economy. The government has used some Keynesian mechanisms to try to regulate the free market, which is exactly what gets done in many nations all over the world, especially in Europe, the Arab world, Africa, Japan Southeast Asia and Central Asia. The Keynesian model of regulated capitalism is one of the major models utilized on the planet today. So all you commenters screaming about Venezuela – I guess you are Libertarians who are opposed to Keynesian economics, correct?
It is constantly compared to Cuba and the USSR and the command economies that caused so many problems in those places. It is even suggested that the long lines are for “rationed products” just as they were in Cuba and the USSR.
Problems:
Economy: There is no command economy in Venezuela. There is no rationing of anything, much less food. Venezuela cannot be said to have a Communist, Marxist or even socialist economy unless you define socialist as social democracy. Yes, Venezuela is about as socialist as most European countries and so many other nations around the world that in one way or another are social democracies. So when you scream that the Venezuelan system is a “failed socialism,” what you are really saying is that social democracy is a failed system. You are saying “France and Sweden are Communist countries.” The insane conflating of social democracy and Communism makes you a…Libertarian, or better yet, a Republican.
The “socialism” that the media has been screaming about has really just been nothing more then Keynesianism – capital controls and price controls after all are simply Keynesian mechanisms utilized in order to regulate free market capitalism. So when you call Venezuela “failed socialism,” what you are saying is that Keynesianism is a failed system and that radical free market capitalism is the only viable solution. So you are an Ayn Randist. You’re Glenn Beck, Paul Ryan, Ron Paul and Milton Friedman.
There never was any socialism in Venezuela anymore than there is socialism in Saudi Arabia, the UAE and Kuwait. In fact, the Gulf model was the “socialist” model that the Bolivarians were following. So when you scream and call Venezuela “failed socialism,” you are saying that the Gulf states are Communist countries. You are also saying that the Gulf economic system is “failed socialism.” Those economies look failed to you? Me either.
Nothing new about the Bolivarians. Everything the West has been screaming about has been the case for decades in that country. The oil company was nationalized by the pro-Western parties in 1974. I guess they must have been Communists. Only Commies nationalize oil companies.
For decades before Chavez came in, price controls were regularly used in Venezuela by the pro-Western parties. I assume they were utilized to try to deal with the inflation that has always been a problem down there. In fact, the pro-Western parties in that time even used currency controls. Nations all over the world use currency controls.
Venezuela has always had a serious inflation problem. Sure it is running 150% inflation now, but during the 1980’s before Chavez came in, inflation was averaging ~100%/year or between 50-150%. There’s nothing new there. Venezuela’s always had horrible inflation. Even the social democratic or socialist nature of the Bolivarians is nothing new. in fact, one of the two main opposition pro-Western parties, the AD, is a social democratic party or was the last time I checked. In fact, this leading party of the opposition is actually a member of the Socialist International! So if you want to complain about failed socialism and all that crap, why don’t you start with the opposition?
