Friday, May 19, 2017

Venezuela -- the LIberal End Game

Almost everything proposed by the left reduces incentives.  Given enough of that stuff, the economy eventually collapses.  The old Soviet Union, the old China and today's Venezuela are textbook cases of how destroying incentives destroys a country's economy.  Today's Russia and today's China, having brought back a substantial amount of economic incentives, are, today, far, far better places for their average citizens.

This is a persistent, historical theme.  It sounds great to provide free stuff.  But, providing free stuff eliminates the incentives necessary for an economy to grow.  In time, the economy, absent incentives begins to slip into collapse.  Venezuela shows the path.

Venezuela was the dream of the left.  The election of Hugo Chavez promised to provide free everything for everyone and to throw out the capitalists.  That program succeeded and, today, the outcome is visible to see: riots in the streets, people starving, an economy crumbling.  This is what happens when incentives are stripped from an economy.

It is possible for free elections to destroy a country: Venezuela is an example today; Turkey will be an example tomorrow.  More important than free elections is a commitment to individual liberty and free markets -- check out Singapore if you need an example. 

Singapore does not have free elections to determine the country's future, but Singapore does have free markets and individual liberty that most countries, including the US, do not have.  Yes, Singapore is not perfect.  But, where would you rather live -- Singapore or Venezuela (or Detroit or Chicago)?

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