With a $150 billion
debt and no cash to restore Venezuela’s oil industry, the once wealthy country
may be in for decades of economic recovery. They need to re-privatize their oil
industry. But first they need to restore
the rule of law with guaranteed property rights and restrict government
spending to minimum levels to build cash reserves.
Socialist programs
will need to be scrapped and cash-flow returned. They will also need to kill
their currency and began to use a currency with guaranteed value. They should
then be able to begin to restore a private sector, free market economy.
They will need food,
water, electricity and medicine. They should install a new constitution that
bans socialism and severely limits government powers. Families will need to form
family businesses to get to work and take care of their own.
There are lessons to
be learned from the Venezuelan Saga. The first is to ban socialism and
guarantee private property ownership to prohibit government from taking over
private sector industries. Finally, don’t let your sleazy government run out of
cash.
Venezuela went broke adopting socialism. They
printed money and hyperinflation hit 10 million percent in 2019.
Zimbabwe went broke funding war. They printed
money and hyperinflation hit 179.6 billion percent in 2008
Zimbabwe replaced their currency with the US
dollar and began to recover. Their GDP has grown from $4.4 billion in 2008 to
$16 billion in 2019. The 2019 Per Capita GDP in Zimbabwe is $908 per year and
they import twice as much as they export.
Venezuela should have known about the Zimbabwe
failure, but their socialist government probably went broke on purpose to give
Russia and China a foothold in South America to prop up Cuba. Corruption breeds
corruption and South America already had the drug cartels.
South America needs to know that socialism,
crime and communism will not attract the long term investment needed to improve
the standard of living for their countries.
Norb Leahy, Dunwoody
GA Tea Party Leader
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