There is often misinformation spread about Venezuela and the effects of socialism on its economy. How much do you know about the situation and socialism? Can you identify the lie?
A. Socialism is not what ruined Venezuela; it has always been an impoverished Latin American dictatorship.
B. Before Venezuela went socialist, it was a democracy, and the richest country in Latin America.
C. Socialism destroys free choice and genuine market incentives.
A. LIE! Venezuela’s ruin is a direct result of socialism. In the name of redistribution, Venezuela’s government under Hugo Chavez took control of ever expanding sectors of the economy — trashing property rights, nationalizing private industries, and imposing byzantine currency and price controls combined with massive handouts. With backing and help from Cuba, Iran, Russia and China, Chavez’s successor Nicolas Maduro continued these socialist policies, further transforming Venezuela into a basket case of poverty, dysfunction and repression.
B. TRUTH! Before Venezuela went socialist, it was a democracy, and the richest country in Latin America — a major exporter of oil. Socialism put an end to all that. Venezuela now has political repression, fuel and food shortages, rotting industry, a wrecked economy, and millions of its people have fled the country in order to feed their children or simply save their lives.
C. TRUTH! Socialism destroys both free choice and genuine market incentives, by concentrating power, wealth and decisions under the control of the government, at the expense of individual rights and freedoms.
Bottom Line: Venezuela, in all its tragic and needless ruin, stands as a warning of how radically socialism can turn wealth and freedom into destitution and misery.