Nobel Laureate Vernon Smith: Markets Could Restore Prosperity to Venezuela Almost Immediately
Updated: Dec 19, 2018
Free markets. Free prices. There is no recovery in any substantive way without letting them do their thing.
This would of course disempower the throng of socialists strangling the country right now. As such we are unlikely to see reforms. These guys want to hold on until the bitter end.
The government of Venezuela in the name of the people and for the benefit of the people seized the big bad profit-grabbing oil companies, thinking that anyone off the street could manage a business. They started redistributing wealth to poor, made electricity free, were praised by some (well at least one) American Nobel economists for reducing inequality.
This small incredibly oil rich country cannot now feed itself. Markets, whose prices coordinate and incentivize the creation of wealth cannot function. Farmers cannot buy seed or fertilizer, food imports have declined 70% and people cannot find enough food in the garbage cans. The invisible-to-the-eye workings of the complex economy of plenty—which of course cannot assure that all will be productive enough to share in its plenty—has utterly collapsed.
Free markets work. Historically we see this over and over. Combined with property rights and the rule of law one as the recipe for prosperity generally. But some refuse to see this. They want to believe in the engineered society.
Sorry Mr. Maduro, that just isn't how the universe operates. (You should know better too Mr. Sanders.) You're just tragically wrong.