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
Deter_Naturalist
Deter_Naturalist

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 phone...is 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.

killben
killben

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

tz1
tz1

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

Bam_Man
Bam_Man

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.

Pater_Tenebrarum
Pater_Tenebrarum

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.

WildBull
WildBull

The hypnotizing effect of the promise of free stuff cannot be overestimated.

lol
lol

southcom already has invasion plans drawn up,trump will not let caracas fall to the chicoms

2banana
2banana

Bernie, from his million dollar lake house, says Venezuela should be an example for America.

RonJ
RonJ

Michael Moore proved himself wrong, again.

TheWindowCleaner
TheWindowCleaner

Of course discounting your primary national resource without rebating it back to enterprise is idiocy. And over all Venezuela's productive facilities are crappy on top of that so it's a no brainer that the country is a basket case. But if you had a sane policy like the discount/rebate and even a half decent productive capability you'd have the very definition of economic good times, i.e. lots of demand and low prices. In fact with those two policies the US could quickly re-industrialize in the most efficiently productive and ecologically sane fashion and you wouldn't have to worry about unemployment because the utterly sane and necessary paradigm of monetary gifting would compensate for it. In fact the additional demand would make investment in things other than financial vehicles very good so you'd undoubtedly have more employment than if you didn't implement those policies on top of everything else....like the complete elimination of transfer taxes for welfare, unemployment insurance and social security,and the slashing of income taxes that would result as well. So many good things for constituencies on the left and the right. Integration of opposites....it's a primary signature of a paradigm change.

MorrisWR
MorrisWR

The only system proven to work is a free market system. It is too bad we have not had one for more than a hundred years. With all due respect to window cleaner, any system of “gifting” money will do no better than Socialist theft. Property rights, rule of law and entrepreneurial business creates wealth. Money schemes from the government does not create wealth. Venezuela is another example of a managed economy failing due to a lack of property rights and free market pricing.

WildBull
WildBull

WindowCleaner, so you would save free markets by giving control of it to the biggest monopoly of them all... the Government. You obviously repudiate the idea of property rights. Without them all progress ceases. Why work when the fruit of your labor is transferred to some else at whim. The opportunity to proper through hard work and prudence and the mirror, the opportunity to starve through laziness and recklessness are the two greatest motivators of all. Without property rights, work doesn't matter and therefor does not happen.

It is very interesting to read all the comments discussing the minutiae of implementation of Socialist schemes. What a waste of effort, when the outcome will always be failure.

TheWindowCleaner
TheWindowCleaner

Direct monetary distributism, for the umpteenth time is NOT socialism or socialist theft via re-distributive taxation, and if the problem with profit making systems is that they inherently produce more costs than individual incomes with which to liquidate those costs the only way to make them work free flowingly is to integrate COSTLESS monetary gifting into them.

The set of positive and constructive purposes is much vaster than the set of purposes via employment only, and acculturating people to the former is a fairly straightforward task.

As for government being a bigger tyranny than finance, the libertarian irrational generalization that government is always tyrannical is easily refuted if a government's policies effect individual monetary freedom as mine do. Please check your premises there will ya.

WildBull
WildBull

There is no such thing a costless gifting. Something that is bought with a "costless" gift is not available to be bought by someone that actually worked to afford it. Creating "costless gifts" occurs at the expense of all those that actually worked to earn money. You money out of thin air looks the same as earned money, but dilutes the value of money that people have actually worked for. It is still Socialist redistribution disguised as something else. Why not give everybody $200,000,000,000 each? Then we can all drive Bentlys, live in 20,000 square foot mansions and hire servants.

SleemoG
SleemoG

Someone with ideas as compelling, innovative, world-changing and verbose as yours should have a blog, Window Cleaner. What is the name or URL of your blog? I, for one, could use some more quality reading material. TIA.

Tezza
Tezza

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.

SleemoG
SleemoG

Still waiting Window Cleaner.

Deter_Naturalist
Deter_Naturalist

"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.