Socialism Fails

Venezuela’s horrible experiment with socialism has come to this:

Food is running out, as are other essentials, even though the country claims the world’s largest oil reserves. There are shortages of toilet paper and soap, empty shelves and massive crowds queuing for hours in front of supermarkets. Patients are sometimes having to buy their own medicines; doctors are warning that 95 per cent of hospitals have only five per cent of the supplies they need. The central bank’s scarcity index has reached a record of 28 per cent, which means that more than one in four basic goods are out of stock at any time; and the situation has worsened considerably since the figures were last compiled.

Incentives matter. And when you try to remove incentives from an economy, the economy crumbles.

As Hayek explained, removing economic freedom will also lead to totalitarianism. It’s happening now, and the Venezuelan people are caught in the crosshairs.

Bonus link: The Road To Serfom in animated form.

Advertisements

Tags: ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: