Tag Archives: Marxism

How a small third world country became the top economy in Latin America

South America Map
South America Map

So, I’ve been watching the Democrat debates, and I’ve noticed that all of their candidates are proposing economic policies that they say will improve the lives of Americans. But have the candidates ever been able to try out these policies, and proven that they work? One way to evaluate policies is to look at other countries that have tried them, to see if those policies are proven to work.

I’ve been reading a book called “Money, Greed and God” with my friend Carla, which talks about what does and does not work to alleviate poverty. The author basically outlined two approaches. In the first approach, the government 1) confiscates the wealth of the most productive workers, 2) nationalizes (takes control of) the businesses of the most successful entrepreneurs, 3) restricts trading between citizens and with other countries, with minimum wage, price controls and tariffs. In the second approach, the government does the opposite: 1) lowers taxes on the most productive workers, and 2) lets entrepreneurs compete to provide goods and services to consumers, and 3) lowers restrictions on internal trading and trading with other countries, e.g. – eliminating minimum wage, tariffs and price controls.

Let’s take a look at two Latin American countries that went in opposite directions. Venezuela and Chile. Then we can finally find out which policies actually achieve results for the people.

Here is how Chile started out in 1973.

PROBLEM: Price controls and tariffs:

Prices for the majority of basic goods were fixed by the government in 1973. Even though Chile was and still is a small economy, the level of protection­ism was high. By the end of 1973, the nominal average tariff for imports was 105 percent, with a maximum of 750 percent. Non-tariff barriers also impeded the import of more than 3,000 out of 5,125 registered goods. Just as economic theory predicts, large queues in front of stores were usual in Santiago and other cities in Chile as a result of the scarcity caused by price controls.

PROBLEM: Government taking over private businesses:

The decline in GDP during 1973 reflected a shrinking productive sector in which the main assets were gradually falling under government control or ownership through expropriations and other government interventions in the economy.

PROBLEM: Deficit spending and government printing money:

The fiscal situation was chaotic. The deficit reached 55 percent of expenditures and 20 percent of GDP and was the main cause of inflation because the Central Bank was issuing money to finance the government deficit.

SOLUTION: lower or eliminate restrictions on trade:

The most important economic reform in Chile was to open trade, primarily through a flat, low tar­iff on imports. Much of the credit for Chilean eco­nomic reforms in the following 30 years should be given to the decision to open our economy to the rest of the world. The strength of Chilean firms, productive sectors, and institutions grew up thanks to that fundamental change.

SOLUTION: let competing entrepreneurs in the private sector provide goods and services to consumers:

A second fundamental reform was to allow the private sector to recover, adding dynamism to the economy. In fact, important sectors such as elec­tricity generation and distribution and telecommu­nications were still managed by state companies. After we implemented a massive privatization plan that included more than 50,000 new direct share­holders and several million indirect (through pen­sion funds) shareholders, these companies were managed by private entrepreneurs that carried out important expansion plans.

SOLUTION: let people take responsibility for their own lives instead of depending on government:

The 1981 reform of the Chilean pension fund system deserves special mention. Under the leader­ship of Minister José Piñera, an individual capitali­zation account program was designed with specific contributions, administered by private institutions selected by the workers. The Chilean Administra­doras de Fondos de Pension (Pension Fund Administrators or AFP) has been replicated in more than 20 countries, and more than 100 million workers in different parts of the world use these accounts to save for retirement.

SOLUTION: allow parents to choose the school that fits their needs from competing education providers, and push school administration down from the federal government to the municipal level, where it would be more responsive to voter’s needs:

In 1981, Chile introduced a universal educational voucher system for students in both its elementary and secondary schools. At the same time, the central government transferred the administration of public schools to municipal governments…  The financial value of the voucher did not depend on family income.

RESULTS: And I was able to find a nice short, description of how all that worked out for them on the far-left Wikipedia, of all places:

The economy of Chile is a high-income economy as ranked by the World Bank, and is considered one of South America’s most stable and prosperous nations, leading Latin American nations in competitiveness, income per capita, globalization, economic freedom, and low perception of corruption.

In 2006, Chile became the country with the highest nominal GDP per capita in Latin America. In May 2010 Chile became the first South American country to join the OECD. Tax revenues, all together 20.2% of GDP in 2013, were the second lowest among the 34 OECD countries, and the lowest in 2010. In 2017, only 0.7% of the population lived on less than US$1.90 a day.

According to the Heritage Foundation, Chile is ranked as the 18th freest economy in the world. The World Bank ranked Chile as the 50th highest GDP per capita for 2018, just below Hungary and above Poland.

Now, you can contrast those results with Venezuela. I have been blogging about Venezuela for years on this blog, and documenting how they raised taxes, banned guns, nationalized private sector companies, raised tariffs, and increased regulations. They are now ranked JUST ABOVE NORTH KOREA for economic freedom – #179 out of 180 countries measured. Basically, they did the opposite of everything that Chile did – transferring power away from parents, workers, business owners, churches and municipal governments to the powerful centralized federal government.

Wikipedia explains how Hugo Chavez took over in 1999 and enacted a communist revolution.

More:

Since the Bolivarian Revolution half-dismantled its PDVSA oil giant corporation in 2002 by firing most of its 20,000-strong dissident professional human capital and imposed stringent currency controls in 2003 in an attempt to prevent capital flight, there has been a steady decline in oil production and exports. Further yet, price controls, expropriation of numerous farmlands and various industries, among other government authoritarian policies… have resulted in severe shortages in Venezuela and steep price rises of all common goods, including food, water, household products, spare parts, tools and medical supplies; forcing many manufacturers to either cut production or close down, with many ultimately abandoning the country as has been the case with several technological firms and most automobile makers.

They confiscated private property, took over private sector businesses, implemented tariffs and price controls, redistributed wealth via massive welfare programs, and pushed all decision-making out of families and municipal governments up to the federal government. By depriving the producers of their earnings, the country caused massive shortages of goods and services, to the point where people are fleeing the country, consuming zoo animals, and selling their bodies as prostitutes in order to get food and water.

Application

In the next election, we are not picking a tribe because of how they make us feel about ourselves. We are not choosing in order to see ourselves as “nice” and “not nice”. We need to look at specific policies being proposed, and see what works and what doesn’t work. The examples of Chile (rags-to-riches) and Venezuela (riches-to-rags) are helpful for voters who want to get RESULTS instead of FEELINGS.

I’ll leave you with a list of links from previous posts so you can see how communism worked out for Venezuela.

Related posts

 

What is masculinity, and why do leftists oppose it?

Air Force TACPs confirm target locations with their map
Air Force TACPs confirm target locations with their map and GPS

My friend Adina shared a splendid article from the American Thinker with me. People often ask me why I speak about policy and politics so much on a Christian apologetics blog. My usual answer is that things like money and religious liberty are central to how Christians run their lives. But this article made me think of a deeper reason, one that’s been the driving force in my life for a long time.

First, let’s see some of the article, then I’ll talk about why this article is a key to really understanding men like me.

Excerpt:

An ongoing mantra of the left is that everyone is a victim, with a singular carve-out for white men.  A large group of the female population has embraced this chant.

While there may be a number of grievances put forth by this movement, there also comes a theme that is particularly dangerous: the feminist attack on masculinity.  This is derived not only from feminists; it comes from the left in general.

There has emerged a war on masculinity.  Why?  Because masculine men are harder to control under tyrannical socialism.  The modern beta male, on the other hand, craves socialism.  This is why the left has branded masculinity as toxic: it stands as a roadblock to their endgame.

That’s the thesis of the article, and here is a snippet that I want to talk about:

The feminist hatred for masculinity is only another tool in the toolbox of communism.  Masculinity tends to make a man individualistic.  Individualistic men are capitalists, not communists.  They are men who cherish individual liberty, and they rely on themselves rather than on government.  Self-reliance is a four-letter word for leftists, and masculine men are generally self-reliant.  Beta males like Pajama Boy rely on government, and such modern men, devoid of any semblance of masculinity, are ideal for leftist indoctrination.

Were the frontiersmen communists or capitalists?  How about the cowboys?  How about the Navy SEALs or Army Rangers?  Sure, the press may find in the military a few Che Guevara t-shirt-wearing idiots and parade them all over the place, but I am willing to bet that the majority of SEAL Team 6 comprises masculine capitalists.

What games do young boys play?  They pretend to be cowboys.  They pretend to be soldiers.   They don’t pretend to be soviet textile workers slaving under Stalin’s system.  They don’t pretend to be entitled Millennial brats who congregate at Starbucks and talk about the wonders of socialism, either.  Most boys hit the ground embracing masculinity.  Some maintain it, but many have it berated out of them by the weak society they walk in or by their leftist parents.

Masculinity leads a man to seek to better himself in many regards, while collectivism thrives on mediocrity.  Collectivism in this country is sought by the lazy who don’t want to work but feel entitled to free handouts of all kinds.

I can confirm from my reading of SEAL and Ranger autobiographies that they are overwhelmingly conservative in their politics.

OK, so two points about this. First, I grew up in a very liberal environment where masculinity was already under attack starting from elementary school. It started in the public schools with the lazy public school teachers. In college, I saw lazy college students doing non-STEM degrees because they were easy. And then they wanted bailouts for their unpaid student loans.

I really noticed it when I worked for the government during a couple of summers. Most people in unionized jobs just don’t have the marketable skills to make it in the private sector, where people are paid based on performance and can easily be fired for failure to perform. Public schools and government are two places where people who can’t perform go in order to make money without having to perform. Even their raises are defined by collective bargaining, not individual merit. (My public school system even went on strike, and I would see the teachers holding signs in order to get paid more, instead of doing what normal people do, and producing more). Working in the public sector just not acceptable to people who want to work hard and advance by merit.

The more I experienced this, as a student and as a government employee, the more I realized that I wanted to get as far away as possible from laws and policies that reflect a desire to provide security for lazy people. I wanted these people out of my life. I didn’t want them getting my money. I did not want them making the rules that I had to live by. I wanted to cut government funding and enact right-to-work and school choice laws. Just to stop the forced funding of lazy people through mandatory taxes. I didn’t yet realize that there was any masculine-feminine distinction going on, I just knew that these were lazy people, they made poor choices because of their desire for fun and laziness, and they ought to be starving, not getting paid. And as the left started to crack down on free speech, guns, and other freedoms, I started a lifelong journey from blue states to red states. I just wanted nothing to do with these people interfering in my life, and leeching off of me. I wanted to post pictures of a Steyr Aug on Twitter and tag all my female public school teachers and their nanny state allies, who didn’t like guns because “they are loud and scary”. (Note: I do not yet own a Steyr Aug. Maybe some day.).

My second point is about how this denigration of masculinity works out in relationships.

I wanted to get married pretty much from high school. Since I didn’t have a stay at home mom, I decided early on that I wanted that for my children. I can remember thinking about this in my junior year of high school (grade 11). So, I talked to my Dad about it, and he suggested that I not follow my dream of becoming an English teacher, and instead focus on computer science. I was just as good at computer science as English literature in those days – good enough for the class awards every year in both subjects. So, I got the BS and the MS, and then moved to find work that would pay a lot. And I saved a lot of what I earned.

Fast forward to my relationships. What I found is that women who were influenced by leftism had zero respect for my ability to lead in areas like education, career and finance. Since they had been taught that masculinity was toxic, they would often prefer younger, penniless, unemployed students who were more easily manipulated. They resented that I would offer them advice about what to study, where to work, and how to save more, which – along with apologetics and raising parrots – is about the only stuff I’m qualified to give advice about! Basically, they had been trained to see male competence as toxic. Male leadership – even when it was clearly demonstrated from past success – was toxic. And the “best” men were the men who let them make decisions based on their feelings, which mostly involved pursuing fun and being irresponsible – and sometimes even immoral. Men exist to give women “feelings”, and for no other purpose than that.

Well, that’s what I wanted to say about how my experience with anti-masculinity in education, career and relationships has affected me. My masculinity came about naturally, as a result of encountering leftism in different areas of my life. And I think having to deal with it up close just pushed me further in the masculine direction. That is not to say that I am a promiscuous, risk-taking thug. I’m chaste, I’m a software engineer, I don’t drink, I have no tattoos or piercings, I’ve never been arrested, and I’ve saved most of what I earned. But if I could move to a place where government kept out of my business and out of my wallet, then I’d move. If I could find a woman who respected the strengths of men, then I’d marry her.

I basically want to be in a place where the government and the women around me are respectful of my different priorities and different life goals. Unfortunately, I’m living in a time of great foolishness, and much of that has been brought about by leftism. Much of my income is confiscated so that other people can spend it and call themselves “generous” with money they did not, and could not, earn themselves. My liberty is constrained, and the people who cost me money or do me harm – illegal immigrants, criminals, terrorists, etc. – are treated better than I am. All in the name of “compassion”. We are in a time and place where people in high places are at war with masculinity. I wish I could opt out of every nanny state policy, but there’s no opt-out.

What can we learn about communist leaders from the record of history?

I have a key that will unlock a puzzling mystery
I have a key that will unlock a puzzling mystery

The Democrats are running a lot of communist candidates in the 2020 election, so I thought it might be a good idea to take a look at what communist leaders have done in history. First, let’s see how the atheistic worldview of communist leaders affected religious people.

Here is what Josef Stalin did during his rule of Russia in the 1920s and 1930s.

The Library of Congress offers this in their “Soviet Archives exhibit”:

The Soviet Union was the first state to have as an ideological objective the elimination of religion. Toward that end, the Communist regime confiscated church property, ridiculed religion, harassed believers, and propagated atheism in the schools. Actions toward particular religions, however, were determined by State interests, and most organized religions were never outlawed.

The main target of the anti-religious campaign in the 1920s and 1930s was the Russian Orthodox Church, which had the largest number of faithful. Nearly all of its clergy, and many of its believers, were shot or sent to labor camps. Theological schools were closed, and church publications were prohibited. By 1939 only about 500 of over 50,000 churches remained open.

What’s the attitude of Democrat candidates to Bible-believing Christians? My read is that they think that Christian values need to be suppressed by the government lest they offend Democrat voters, who seem to be very easily offended these days. You can already see their animus towards Christians in their Equality Act, which eradicates conscience rights in order to protect (some) LGBT people from feeling offended.

The Ukraine Famine

Take a look at this UK Daily Mail article about Josef Stalin.

Excerpt:

Now, 75 years after one of the great forgotten crimes of modern times, Stalin’s man-made famine of 1932/3, the former Soviet republic of Ukraine is asking the world to classify it as a genocide.

The Ukrainians call it the Holodomor – the Hunger.

Millions starved as Soviet troops and secret policemen raided their villages, stole the harvest and all the food in villagers’ homes.

They dropped dead in the streets, lay dying and rotting in their houses, and some women became so desperate for food that they ate their own children.

If they managed to fend off starvation, they were deported and shot in their hundreds of thousands.

So terrible was the famine that Igor Yukhnovsky, director of the Institute of National Memory, the Ukrainian institution researching the Holodomor, believes as many as nine million may have died.

[…]Between four and five million died in Ukraine, a million died in Kazakhstan and another million in the north Caucasus and the Volga.

By 1933, 5.7 million households – somewhere between ten million and 15 million people – had vanished. They had been deported, shot or died of starvation.

The Holodomor is just one of the atrocities committed by Soviet Union communists. You may also have heard that they operated a system of labor camps for dissidents that killed millions more. The total number of people killed by Stalin is estimated at 20 to 40 million.

Stalin actually wasn’t very good at mass murder compared to another communist, Mao Zedong.

Can you name the greatest mass murderer of the 20th century? No, it wasn’t Hitler or Stalin. It was Mao Zedong.

According to the authoritative “Black Book of Communism,” an estimated 65 million Chinese died as a result of Mao’s repeated, merciless attempts to create a new “socialist” China. Anyone who got in his way was done away with — by execution, imprisonment or forced famine.

For Mao, the No. 1 enemy was the intellectual. The so-called Great Helmsman reveled in his blood-letting, boasting, “What’s so unusual about Emperor Shih Huang of the China Dynasty? He had buried alive 460 scholars only, but we have buried alive 46,000 scholars.” Mao was referring to a major “accomplishment” of the Great Cultural Revolution, which from 1966-1976 transformed China into a great House of Fear.

The most inhumane example of Mao’s contempt for human life came when he ordered the collectivization of China’s agriculture under the ironic slogan, the “Great Leap Forward.” A deadly combination of lies about grain production, disastrous farming methods (profitable tea plantations, for example, were turned into rice fields), and misdistribution of food produced the worse famine in human history.

Deaths from hunger reached more than 50 percent in some Chinese villages. The total number of dead from 1959 to 1961 was between 30 million and 40 million — the population of California.

[…]Mao kept expanding the laogai, a system of 1,000 forced labor camps throughout China. Harry Wu, who spent 19 years in labor camps, has estimated that from the 1950s through the 1980s, 50 million Chinese passed through the Chinese version of the Soviet gulag. Twenty million died as a result of the primitive living conditions and 14-hour work days.

Whenever I bring up the historical record of communism to Democrats, they always tell me that their leaders have good intentions. But the communist leaders of the past aren’t any different from the communist leaders of today. Communist leaders all start out with noble ambitions of wanting to help the poor. The problem is that they don’t know anything about economics, so whatever they try doesn’t work. Communist policies like nationalizing private industries, printing money, purging wealthy people, imposing tariffs, and imposing price controls cause enormous poverty. And then they need someone to blame for their failure to produce the results they promise.

If we were serious about helping the poor, then we would elect leaders who had experience lifting the poor out of poverty. A business leader or a governor of a state. It’s not a popularity contest. We need to choose someone who has already had success at helping the poor. And the best way to help the poor is by helping them to find work so they can earn their own success and chart their own course. After all it’s not words that affect our lives. Or the feelings we have about words we like. What affects our lives is policies that produce results. Intentions and rhetoric don’t matter, ultimately.