Fighting Poverty, Ending Up With Hyperinflation: Wealth Redistribution Madness

The socialist paradise of Venezuela is in the midst of hyperinflation. Property confiscation is at the heart of it.

To fight poverty, Hugo Chávez and Nicolás Maduro took over the oil industry and gave cheap gasoline to the people.

Gasoline is priced well under the cost of production. The black market siphoned off most of the supply which soon collapsed.

Venezuela has the cheapest gasoline price in the entire world, but try getting any.

This Tweet accurately states what happened except it has the price of gasoline wrong.

Barter, Venezuela's Real Currency

Annual Inflation: 42,489%

Extreme Giveaway Madness

Annie Lowrey, the author of a new book on universal basic income says Trump should "shower people with money".

She has a "radical" proposal for an allegedly "sane" economy.

Her "insane" idea is to tax corporations enough to give everyone $1,000 per month.

I did the math on that. Lowrey wants to give away close to $4 trillion per year.

Venezuela shows how extreme social redistribution schemes inevitably end up.

For discussion, please see More Give Everybody "Free Money" Idiocy.

Mike "Mish" Shedlock

Comments (22)
No. 1-22

Leftism is the theology of wish-fulfillment.

The industrial revolution, harnessing of oil, then the atom, then the microprocessor, putting men in orbit, intercontinental air travel, the magic of the cell it any wonder that the fad-of-the-day is that "we" can literally re-write Nature's Laws any way our "thought-leaders" feel is right?

The Left got to the point where genetics don't even determine sex. It's small wonder that Leftists aren't demanding their elected officials deliver a Star Trek transporter to each doorstep. After all, they seem to think that words on a piece of paper (a magical incantation known as statute law) can make peace in places inhabited by the violent and make sane the insane.

Perhaps this is Nature's Way of reminding us that just because we radically reduced the normal culling of human populations via cholera, tuberculosis and high child mortality didn't mean we eliminated culling forever. Culling has reportedly resumed in Venezuela. It will resume everywhere eventually, for the same reasons. A belief in unlimited resources only lasts until either the fad changes direction or the underlying capital of a place is exhausted.


Just shows there is no dearth of fools. Chavez goes. Annie comes. It is the common man who ends up getting screwed


In some of the "Camps" in Germany they had showers. They weren't monetary but I think the effect was similar.


Don’t kid yourselves. These people are Neo-Bolshevik collectivists. They know just as well as you and I that “Socialism” NEVER succeeds, but is the first step that needs to be taken on the way to implementing THEIR system, which is purely totalitarian. Unfortunately, the average American will fall for it.


I subdivide them into two groups: the one comprises those who actually know that it can never work and are hoping to grab power (in most cases I suspect because they are psychopaths who enjoy ordering people around) and another which comprises what Lenin called "useful idiots". This is actually the larger group; most are too stupid/ uneducated to realize what they are wishing for, but some of them erroneously believe they are part of the first group (that ends up in power). They don't know that they will be among the first people to be purged once they are no longer needed.