Venezuela’s Accelerating Descent to Socialist Misery


International Liberty

Nations usually don’t suffer overnight economic collapse. Indeed, Adam Smith was right about the ability of a country to survive and withstand lots of bad public policy.

But at some point, as a nation gravitates in the wrong direction on the statism spectrum, it goes from prosperity to stagnation to decline.

Which is sort of what happened in Argentina because of Peronism (though Pope Francis learned the wrong lesson from his country’s big mistake).

But Venezuela is even worse. It’s going from prosperity to stagnation to decline to collapse.

In a must-read article for the Mises Institute, José Niño explains how cronyism and redistributionism helped to sap Venezuela’s economy way before Chavez and Maduro made a bad situation far worse.

While Chávez and his successor Nicolás Maduro deserve the brunt of the blame for Venezuela’s current economic calamity, the underlying flaws of Venezuela’s political economy point to much more systemic…

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