Anyone who knows anything about how socialism “works” probably thought the percentage was higher. And it probably is.
Socialism fails because it denies reality. It denies the market mechanism. It denies the knowledge a free price system gives us. It seeks to impose a construct upon the economy that is unnatural and as such creates distortions in the marketplace. These distortions soon become cancers on the economy. The country subject to the coercion of socialism gets sick and in some cases dies. It’s not difficult to understand. Socialism is economic death, sooner or later and to the degree socialism is implemented. A lot of socialism means a lot of economic collapse. A little socialism means only a little economic collapse.
But a lot or a little, socialism is unsustainable. This is absolutely and foundationally true.
By the way Sweden is now one of the leaders in reforming its economy and government away from socialism and more toward sustainable markets. It still has a long way to go but its headed in generally the right direction.
It should also be noted that crony capitalism is a nice way of saying fascism. Fascism, corporatism, is a form of socialism.
(From Today Venezuela)
Maria Carolina Uzcátegui, president of Consecomercio, explained that the merchants do not have enough funds to pay the salaries of their workers because the regime unilaterally increases wages, but maintains price controls on the few products available in the market.
“This year has been complicated because the protests that took place between April and July affected the stores and also because during the last three years there has been a continuous fall of the gross domestic product that exceeds 25% of the commercial sector,” Uzcátegui said.
The purchasing power of Venezuelans has diminished: not only are there not enough products on the market, but there is no money to buy them either. This is because Venezuela has the highest inflation rate in the world and the lowest wages in the region. And “the forecast for next year appears very black,” she added
The crisis has further deepened because entrepreneurs have gone more than two months without acquiring the foreign currency needed to import raw material that would serve to produce goods to bring to market. This has forced them to go to the parallel dollar market, which makes it more expensive and difficult to maintain and operate a business.