WASHINGTON — Venezuela is the best example of how inadequate socialism is to meet the needs of their people.
Recently, Yahoo and Reuters reported that Venezuelan President Nicolas Maduro ordered a retailer to sell its products at bargain prices. He posted military guards to ensure no violence would ensue, but there is no doubt that these store owners will go out of business. Maduro also ordered stores across the country to cut their prices by 50%.
Scenes of Venezuelans scrambling to get large-screen televisions and the like hit the news cycle, but as economists could tell you, there is never a free lunch. And, when prices are cut by force and edict, the free market will not adjust willingly due to overhead costs.
Now, Maduro is blaming the West, the U.S. and capitalism for the income inequality and poverty of his country. He has been running Venezuela since Hugo Chavez, his mentor and predecessor, was dealing with terminal cancer. Maduro barely won a contentious election that some still doubt was won fair-and-square.
He barely beat Henrique Capriles, who also barely survived his gubernatorial election in his province of Miranda to keep his post. Capriles has denounced these socialist practices that have sunk the country.
Venezuela has soaring inflation, rising poverty and a stagnant economy as a result of rampant socialism and drastic redistribution of wealth.