Saturday, May 6, 2017

Venezuela again proves that Socialism Kills

The latest victim of Socialism is Venezuela. Following are some headlines of past few months concerning that country:
  1. Venezuela Is Starving Once Latin America’s richest country, Venezuela can no longer feed its people, hobbled by the nationalization of farms as well as price and currency controls
  2. Venezuela death toll rises as unrest enters fourth week 
  3. Death toll jumps to 20 in Venezuela protests 
  4. GM halts operations in Venezuela after factory is seized 
  5. Maduro orders Venezuela army into streets 
  6. Clashes in Venezuela as Maduro starts constitutional rewrite
  7. Ranks of Political Prisoners Grow as Democracy Ebbs in Venezuela 
  8. Venezuela has a bread shortage. The government has decided bakers are the problem 
  9. Emaciated Venezuelan elephant becomes latest symbol of food crisis   
  10. Venezuela's epileptic patients struggle with seizures amid drug shortage 
  11. Venezuela is down to its last $10 billion 
  12. Venezuela Follows India’s Example and Voids Half of Its Cash
  13. Heartbreaking image of newborn babies being kept in cardboard boxes in Venezuela due to 'hospital crisis' 
  14. Venezuela: Over 15% of People Eat Garbage to Survive
  15. Venezuela's "Death Spiral" - A Dozen Eggs Cost $150 As Hyperinflation Horrors Hit Socialist Utopia
  16. Hungry gang butchers thorough bred horse after breaking into zoo in search of food 'due to economic crisis'

I can go on and on like this for a little while, but this, I think, is enough to prove the fact of the futility of Socialism. Venezuela is flirting with Socialism since long , and its ugly head came to fore under the charismatic leader Hugo Chavez and his successor Nicolas Maduro. Under them Venezuela tried socialism and failed spectacularly, as expected. Venezuela once was an oil rich country which in the 1950s had a fourth highest GDP ranking in the world, but now it is dirt poor. 

This result was well expected because theory and history both show the impossibility of socialism. The great Austrian economist Ludwig von Mises proved long ago that under a socialist economy, in the absence of the price system, economic calculation of how to efficiently allocate society’s scarce resource is impossible. And this impossibility means wastage of resources on a gigantic scale ultimately resulting into huge chaos as Venezuela’s case proves once again.  

The choice against any country then is between Capitalism (in its pure form) on one side and Socialism on other. The so-called "middle of the road" policy of interventionism will always lead to full Socialism in the end as exhibited by Venezuela. If a country chooses Capitalism then it survives and thrives, but if it chooses Socialism then it kills itself and die as Venezuela shows.

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