Tag Archives: Marxism

News

Chavez marches Venezuela down the road to serfdom at gunpoint

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CNN reports that Chavez has devalued the Venezuelan bolivar.

In the wake of his decision to devalue Venezuela’s currency, President Hugo Chavez on Sunday said he would put the military on the streets to ensure that business owners don’t raise prices.

Speaking on his weekly television program, “Alo Presidente,” Chavez railed against merchants who re-price their items in reaction to Friday’s announcement that the Venezuelan bolivar currency, which had been fixed at 2.15 to the U.S. dollar since 2005, was devalued to 4.3 to the dollar. For food and medicine, Chavez announced a second fixed exchange rate for these “necessity” goods at 2.6 bolivares to the dollar.

“I want the national guard in the streets, with the people, to fight speculation,” Chavez said, calling re-pricing a form of robbery.

[…]He encouraged people to publicly denounce businesses where prices increase and threatened to expropriate businesses that do.

The government would transfer ownership of such businesses to the workers, Chavez said.

Yes, attacking and nationalizing businesses with the Venezuelan army will do a lot to create jobs and increase competition among product and service providers. Surely lower prices and increased quality will result from this consumer-friendly policy. And foreign investors will be rushing to Venezuela to invest so they can take 700 million Euro losses in a split second.

Investors Business Daily explains the result of devaluing a currency.

For starters, it’s a tax. “The government has decided to recognize the massive accumulated inflation in the country and is trying to increase the purchasing power of the (dwindling) dollars it has . .. (by selling) dollars to the private sector at a higher price,” explained Hausmann. “In the short run, this is like a tax on the sale of dollars.”

[…]”The poor have no way to protect themselves from devaluation,” said Johns Hopkins University’s Steve Hanke, who has advised previous Venezuelan leaders about currency. “Their only means are awkward and inefficient.”

Meanwhile, the “tax” on dollars “means a transfer of resources out of the private economy to the government’s coffers,” said Hausmann. “As a consequence, the rest of society will have less income.”

Teachers and doctors, already in short supply among the poor, will likely be hard hit, along with small businesses.

Worse, inflation’s likely to surge, another burden for the poor.

Inflation was already on its way to 30% before Friday’s devaluation. Food, which makes up 80% of what the poor buy, has been hit with a 20% immediate increase in price. This effectively lifts inflation for the poor to a devastating 50%.

Costs for other goods, such as car tires, will rise by 100%. A banker in Caracas tells IBD this will push average inflation to 60% — adding to accumulated inflation of 600% over the past decade, a brutal tax on poor Venezuelans.

The very complexity of the new currency scheme will be a nightmare for the poor, says Hanke.

“More regulations will lead to repression,” he said, citing the weakening freedom to spend money. More controls mean shortages.

I think that people who elect communists like Chavez need to be more careful about listening to honeyed words about the benefits of wealth redistribution. When you attack the rich, they stop hiring workers. And if you attack them enough, they leave your country. Communism causes poverty and famine. It always has, and always will. If you want to know where it ends, look at Cuba and North Korea. That’s where Venezuela is headed.

More on this story from Fausta here and here. ECM sent an article about scheduled blackouts here.

Is Obama any different from Chavez on economic policy?

Here they are shaking hands:

Is there such a thing as a secret handshake for communist dictators? Just asking. Not saying that Chavez or Obama are communist dictators. Just wondering if communist dictators have a secret handshake. A communist dictator handshake conducted by communist dictators to congratulate themselves on how well their ignorance of economics “helps” the poor to starve to death.

Here is the currency graph of the US dollar versus the Canadian dollar. A decline of about 20% in 12 months. (The current exchange rate is 1.03301)

How many Canadian dollars is 1 US dollar worth?
January     1.22664 CAD   (21 days average)
February    1.24684 CAD   (20 days average)
March       1.26275 CAD   (22 days average)
April       1.22697 CAD   (21 days average)
May         1.15311 CAD   (21 days average)
June        1.12458 CAD   (22 days average)
July        1.12350 CAD   (23 days average)
August      1.08796 CAD   (21 days average)
September   1.08182 CAD   (22 days average)
October     1.05427 CAD   (22 days average)
November    1.05978 CAD   (21 days average)
December    1.05366 CAD   (22 days average)

I wonder which one knows the least about economics. Chavez? Obama? Or my keyboard? Hmmmmn.

Here is my previous story about energy rationing in Venezuela.

Commentary

How secular leftists restrict free speech on college campuses

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This long article from Reason magazine is must reading. (H/T ECM)

The author, Greg Lukianoff,  is the the president of FIRE (Foundation for individual Rights in Education).

Here are some of the scariest parts:

Other codes promise a pain-free world, such as Texas Southern University’s ban on attempting to cause “emotional,” “mental,” or “verbal harm,” which includes “embarrassing, degrading or damaging information, assumptions, implications, [and] remarks” (emphasis added). The code at Texas A&M prohibits violating others’ “rights” to “respect for personal feelings” and “freedom from indignity of any type.”

[…]Fordham, for example, prohibits using any email message to “insult” or “embarrass,” while Northeastern University tells students they may not send any message that “in the sole judgment of the University” is “annoying” or “offensive.”

[…]The University of Idaho bans “communication” that is “insensitive.” New York University prohibits “insulting, teasing, mocking, degrading, or ridiculing another person or group,” as well as “inappropriate…comments, questions, [and] jokes.” Davidson College’s sexual harassment policy still prohibits the use of “patronizing remarks,” including referring to an adult as “girl,” “boy,” “hunk,” “doll,” “honey,” or “sweetie.” It also bars “comments or inquiries about dating.”

[…]Until 2007 Western Michigan University’s harassment policy banned “sexism,” which it defined as “the perception and treatment of any person, not as an individual, but as a member of a category based on sex.” I am unfamiliar with any other attempt by a public institution to ban a perception, let alone perceiving that a person is a man or woman. Even public restrooms violate this rule, which may help explain why the university finally abandoned it.

[…]In fall 2008, a professor at Central Connecticut State University called the police on students who gave a presentation in his speech class arguing for the safety value of concealed carry.

And the conclusion is worth citing in full:

With all these examples of authoritarian bullying and systemic miseducation about rights, we shouldn’t be surprised to discover that students are learning not only to accept censorship but to censor each other. Just before I completed this article, more than 10,000 copies of the official student newspaper for the University of Arizona were stolen and dumped by students who were upset about an article.

Newspaper theft is common on college campuses, with the most chilling examples culminating in public burnings. Students have burned other students’ newspapers at schools as prestigious as Cornell, Boston College, Dartmouth, and the University of Wisconsin. In 2008 multiple incidents were reported in which students destroyed pro-life students’ protest displays, including an incident at Missouri State University in which students smashed dozens of Popsicle-stick crosses and another at the University of Wisconsin-Stevens Point in which a member of the student government tore up the crosses one by one in broad daylight. His defense: “Since [abortion] is a right, you don’t have the right to challenge it.”

When students come to believe that censoring rival points of view is not only permissible but laudable, the potential damage goes far beyond campus. Our colleges and universities produce our scientists, our business leaders, our lawyers, and our legislators. The habits formed in college inevitably seep into the other major social institutions.

In 1957 the U.S. Supreme Court said of the nation’s colleges, “Teachers and students must always remain free to inquire, to study and to evaluate, to gain new maturity and understanding; otherwise our civilization will stagnate and die.” The Court was right. The next generation needs to learn the practices of a free people. If it doesn’t, we shouldn’t be surprised if, when it takes its turn to run our republic, values such as free speech and tolerance are treated like rusty, battered antiques: quaint, mysterious, and best kept in the basement.

FIRE is an important organization that I respect, and you should know about their work.

News

Communist Venezuela introduces energy rationing in 2010

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Story here from Breitbart. (H/T ECM)

Excerpt:

Oil-rich Venezuela ushered in 2010 with new measures rationing electricity use in malls, businesses and billboards, as Hugo Chavez’s government aimed to save power amid a crippling drought.

The new regulations came into effect January 1, with businesses required to comply with reduced consumption limits and authorities warning of forced power cuts and rate hikes if the measures are not followed.

[…]The power crunch is expected to have an impact on a wide variety of businesses, including cinemas, casinos and bingo halls.

Establishments failing to comply with the measures could face outages for a period of 24 hours, and up to 72-hour suspensions “in case of recidivism,” according to the decree.

The regulation also orders businesses to institute savings plans aimed at shedding consumption by at least 20 percent, a measure that will be evaluated monthly by the newly-created ministry of electricity.

Tariff surcharges of up to 20 percent could be imposed on violators.

Rationing is also to apply to lighted advertisements.

[…]In 2009 there were four nationwide blackouts, with daily failures common in several cities.

Communism produces economic decline by encouraging entrepreneurs to flee or to stop producing, since the state views what these producers produce as something to be seized and distributed to buy votes. If no one wants to start any businesses, then there won’t be any jobs for the people. People end up depending on the state for bread, with all that that entails. The left wants equality of life outcome regardless of choices, (except for themselves).

I don’t see any difference between the intelligence and policies of Hugo Chavez and Barack Obama. Hugo is just further along the road to serfdom, in my opinion. Obama just has more capitalism and Judeo-Christian morality to undo. After Obama passes government-controlled rationing of health care, he’ll probably move on to government-controlled rationing of energy. By then, Chavez should be rationing births, housing, food and water.