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

No. 1-22

"Give out free money." (Belly laughing.) So if the minimum wage is $8 and you hand everyone $7/hr just for fogging a mirror, what happens? The poor sod working for minimum wage is now actually making $1/hr. Yes, no one will work for that. So people just above the cutoff will simply stop working.

It is an economic axiom that monetary demand creates (or better, diverts) supply. Pay people for "being poor," you will GET MORE POVERTY. Pay young, unwed mothers for having babies, you get more dysfunctional women-headed families with kids who never see baby-daddy.

All of life is dynamic. Put in a "policy" intended to ameliorate an "evil" and you predictably make MORE of the evil. I guess 50 years of this has taught most people absolutely nothing. Evidence is always trumped by religious belief, and the State Religion of every western nation is Leftism.


Still waiting Window Cleaner.


I would be an advocate of a guaranteed income if we phased out all forms of personal and corporate welfare at the federal level and let states decide what they wanted to give people (some states might choose a guaranteed income of zero). Then lets see if the program is popular.