https://mises.org/blog/why-left-refuses-talk-about-venezuela


Why the Left Refuses to Talk About Venezuela

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05/18/2017Ryan McMaken <https://mises.org/profile/ryan-mcmaken>

During the 2016 presidential election, Bernie Sanders refused to answer
questions about Venezuela during an interview with Univision
<http://hotair.com/archives/2016/05/27/stump-the-socialist-bernie-would-rather-not-talk-about-venezuela/>.
He claimed to not want to talk about it because he's "focused on my
campaign." Many suggested a more plausible reason: Venezuela's present
economy is an example of what happens when a state implements Bernie
Sanders-style social democracy.

Similarly, Pope Francis — who has taken the time to denounce pro-market
ideologies
<https://mises.org/library/trusting-politics-and-politicians-it-pope-who-na%C3%AFve>
for
allegedly driving millions into poverty — seems uninterested in talking
about the untrammeled impoverishment of Venezuela in recent years. Samuel
Gregg writes in yesterday's *Catholic World Report*
<http://www.catholicworldreport.com/Item/5648/as_venezuela_burns_many_latin_americans_ask_where_is_pope_francis.aspx>
:

Pope Francis isn’t known as someone who holds back in the face of what he
regards as gross injustices. On issues like refugees, immigration, poverty
and the environment, Francis speaks forcibly and uses vivid language in
doing so.

Yet despite the daily violence being inflicted on protestors in Venezuela,
a steadily increasing death-toll, an explosion of crime, rampant
corruption, galloping inflation, the naked politicization of the judiciary,
and the disappearance of basic food and medical supplies, the first Latin
American pope’s comments about the crisis tearing apart an overwhelming
Catholic Latin American country have been curiously restrained.

This virtual silence comes in spite of the fact that the Catholic bishops
who actually* live *in Venezuela have denounced the regime as yet another
illustration of the "utter failure" of "socialism in every country in which
this regime has been installed."

Thus, for many Venezuelans, the question is: "Where is Pope Francis?"

As with Sanders, it may very well be that Francis has nothing to say about
Venezuela precisely because the Venezuelan regime has pursued exactly the
sorts of policies favored by Bernie Sanders, Pope Francis, and the usual
opponents of market economics.

It's an economic program marked by price controls, government expropriation
of private property, an enormous welfare state, central planning, and
endless rhetoric about equality, poverty relief, and fighting the so-called
"neoliberals."

And, as Venezuelan president Nicolas Maduro has helpfully explained
<http://www.venezuelasolidarity.co.uk/president-maduro-oppositions-neoliberal-model-destroys-everything/>,
"There are two models, the neoliberal model which destroys everything, and
the Chavista model which is centered around people.”

The Chavista model is simply a mixture of social democracy
and environmentalism which is easily recognizable as the Venezuelan version
of the hard-left ideology espoused by a great many global political elites
both in the United States and Europe. Neoliberalism, on the other hand — as
I've noted before
<https://mises.org/blog/whats-difference-between-liberalism-and-neoliberalism>—
is a vague term that most of the time really just means a system of
relatively free markets and moderate *laissez-faire. *

Indeed, no other regimes in the world, save Cuba and North Korea, have been
as explicit in fighting the alleged menace that is neoliberalism.

For this reason, as Venezuela descends into chaos, we are hearing a
deafening silence from most of the left, as even some principled leftists
have noticed.

In an article at *Counterpunch*, for example, Pedro Lange-Churion points
out:

Venezuela was news while it was good news and while Chávez could be used as
a banner for the left and his antics provided comic relief. But as soon as
the country began to spiral towards ruination and Chavismo began to
resemble another Latin American authoritarian regime, better to turn a
blind eye.

Nevertheless, as a dedicated leftist, Lange-Chrion unfortunately still
mistakenly thinks that the Venezuelan problem is *political *and not
economic. For him, it's merely an unfortunate coincidence that the
implementation of the Chavismo economic agenda *just happened* to coincide
with the destruction of the nation's political and economic institutions.

But here's the thing: it's not a coincidence.

In fact, it's a textbook case of a country electing a leftwing populist who
undoes years of pro-market reforms, and ends up destroying the economy.

This has been going on for decades in Latin America where, as explained
by Rudiger Dornbusch and Sebastián Edwards
<https://mises.org/library/bait-and-switch-behind-economic-populism>, the
cycle repeats itself again and again.

It's happened in Argentina and in Brazil most recently, and it goes
something like this: first, a relatively neoliberal regime comes to power,
moderately reduces government spending, somewhat restrains government
power, and ushers in a period of growth. But, even with growth,
middle-income countries like those of Latin America remain poor compared to
the rich countries of the world, and large inequalities remain. Then,
populist social democrats convince the voters that if only the regime would
redistribute more wealth, punish greedy capitalists, and regulate markets
to make them more "humane," then everyone would get richer *even faster*.
And even better, the evil capitalists would be punished for exploiting the
poor. Eventually, the economy collapses under the weight of the new social
democratic regime, and a neoliberal regime is again elected to clean up the
mess.

Venezuela is in the midst of this cycle right now. After decades of
relatively restrained government intervention, Venezuela became one of the
wealthiest nations in Latin America
<https://mises.org/blog/venezuela-chavez-prelude-socialist-failure>. During
the most recent twenty years, though, the Chavistas were able to take that
wealth and redistristribute it, regulate it, and expropriate it for the
sake of "equality" and undermining capitalist evil. But, you can only
redistribute, tax, regulate, and expropriate so much before the productive
classes give up and the wealth runs out.
<https://mises.org/library/santa-claus-principle>

*RELATED: "Are Oil Prices to Blame for the Venezuelan Crisis?
<https://mises.org/blog/are-oil-prices-blame-venezuelan-crisis>" by Daniel
Fernández Méndez*

To the leftwing mind, the explosion of poverty that results can't possibly
be the result of bad economic policy. After all, the Chavismo regime got
everything it wanted. It redistributed wealth at will. It "guaranteed" a
living wage, health care, and plentiful food to everyone. "Equality" was
imposed by fiat over the cries of the "neoliberal" opposition.

The only possible answer, the left assumes, must be sabotage by capitalists
or — as the Pope reminds us — too much "individualism
<https://mises.org/blog/popes-favorite-straw-man-individualism>."

The problem the global left has in this case, though, is that this
narrative simply isn't plausible. Does Colombia have fewer capitalists and
individualists than Venezeuala? It almost certainly has *more.* So why do
Venezuelans wait hours in line to cross the Colombian border to buy basic
food items not available in the social-democratic paradise of Venezuela?
Has Chile renounced neoliberal-style trade and markets? Obviously not. So
why has Chile's economy grown by 150 percent over the past 25 years
while Venezuela's
economy has gotten smaller
<https://mises.org/blog/latin-americas-pink-tide-crashes-rocks>?

The response consists largely of silence.

This isn't to say that what the left calls call "neoliberal" is without its
faults. *Some *aspects of neoliberalism — such as free trade and relatively
free markets — are the reason that global poverty and child mortality are
falling, while literacy and sanitation are rising
<https://mises.org/blog/inequality-doesnt-create-poverty>.

Other aspects of neoliberalism are odious, particularly in the areas of
central banking
<https://mises.org/library/why-austrians-are-not-neoliberals> and crony
capitalism. But the free-market answer to this was already long-ago voiced
by Ludwig von Mises, who, in his own fight against the neoliberals
<https://mises.org/library/against-neoliberals>, advocated for consistent
*laissez-faire*, sound money, and far greater freedom in international
trade.

For an illustration of the* left's* answer to neo-liberalism, however, we
need look no further than Venezuela where people are literally starving and
will wait hours in line to buy a roll of toilet paper.

And if this is what the the left's victory against neoliberalism looks
like, it's not surprising the left seems to have little to say.




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