Archive for the ‘Socialism’ Category

Venezuela’s Starving Population — Socialism Is to Blame | National … – National Review

In his classic monograph on central planning, The Road to Serfdom, F. A. Hayek noted something that seemed like a paradox: Socialism can be put into practice only by methods of which most socialists disapprove, he wrote. He argued that the old socialist parties were inhibited by their democratic ideals and that they did not possess the ruthlessness required for the performance of their chosen task. But that was not always to be the case: For every liberal in a hurry there is a V. I. Lenin, a Fidel Castro, a Mao Zedong, a Ho Chi Minh, a Che Guevara, an Erich Honecker ready to roll up his sleeves and start slitting throats.

Our so-called democratic socialists and their progressive allies always pronounce themselves shocked by this, though of course they have long indulged it, well past the point of being able to plausibly pronounce themselves surprised by any of it. From the New York Timess heroic efforts to not notice the repression and terror in the Soviet Union to Senator Ted Kennedys working on behalf of the KGB, from Noam Chomskys denial of the Cambodian genocide to modern Democrats love affair with Fidel Castro, there is no gulag brutal enough and no pile of corpses high enough to stir in the modern progressive the sort of outrage he might feel upon, say, learning that General Electric took advantage of an accelerated capital depreciation schedule for tax purposes.

People are starving in Venezuela. That, too, is familiar enough to students of the history of socialism. The Ukrainian language contains a neologismholodomornecessitated by the fact that the socialist rulers of that country used agricultural policy to murder by starvation between 2 million and 5 million people who were guilty of the crime of resisting the socialists agricultural policy. In the 1990s, famine killed something on the order of 10 percent of the population of North Korea, where people were reduced to cannibalism. A recent study found that the average Venezuelan has lost nearly 20 pounds in the past year as food supplies dwindle. Venezuela was, within living memory, the wealthiest country in Latin America.

There are two ways of thinking about economics: Many progressives (and many right-wing populists) believe that economics is less of a science and more of an ideology, that all of that talk about scarcity and supply and demand is mostly mumbo-jumbo deployed by people who are getting their way to ensure that they keep getting their way. The alternative view (the view of most economists) is that economics is an effort to describe something real, that while it is important to understand the difference between the map and the territory, all those economic models and demand curves add up to a description of an aspect of reality that is not subject to negotiation and is not a matter of mere opinion.

That was what concerned Hayek and his colleagues in what has become known as the Austrian school of economics, Ludwig von Mises prominent among them. They believed that the central-planning aspirations of the socialists were not simply inefficient or unworkable but impossible to execute, even in principle, owing to the way in which knowledge is dispersed in society. Drawing on more recent work in fields ranging from physics to computer science, modern complexity theorists have expanded enormously on those insights, arguing that markets, like evolution, are complex beyondcomprehending even in principle, hence unpredictable and unmanageable. As he famously summarized it: The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design. From this Hayek, an old-fashioned liberal, concluded that while there might be room in a free and open society for a broad and generous welfare state, the project of providing benefits to poor and vulnerable people must be understood as distinct from the socialist project, which is to put economic production under political discipline. And this has been born out in our own experience: Sweden is simultaneously a free-trading, entrepreneurship-driven capitalist society and a society with a large and expensive (and recently reformed) welfare state. Sweden, sometimes held up as the model of good socialism, has in fact been following a policy of privatization and libertarian-ish reforms for 20 years, with an explicit commitment of moving away from an economy of government planning to an economy of market choice.

But men do not like being told that they cannot do that which they wish to do, and this is particularly true of men who have a keen interest in political power. Hayek believed that efforts to impose central planning on economies were doomed to fail, and that this failure would not be met with humility but with outrage. When socialist policies produced their inevitable economic consequences, the first reaction would be to try to pass laws against the realization of those economic consequences. We saw a good deal of that in Venezuela, for instance with the imposition of currency controls when excessive social-welfare spending produced hyperinflation.

But those efforts are of course doomed to failure as well, which leads to outright political repression, scapegoating, and violence. In Venezuela, strongman Hugo Chvez, who was adored by American Democrats ranging from the Reverend Jesse Jackson to former representative Chakka Fattah and any number of Hollywood progressives, undertook to silence opposition media by insisting that they were simply fronts for moneyed elites working to undermine the work of democracy. (It will not escape your notice that our own progressives are making precisely the same argument in the matter of Citizens United, a First Amendment case considering the question of whether the government could prohibit the showing of a film critical of Hillary Rodham Clinton.) His protg, Nicols Maduro, has continued in the same vein.

Today in Venezuela, soldiers are brutalizing protesters in the streets. Opposition leaders are murdered. The press is muzzled. And people are desperately hungrybut not the party bosses, strangely enough.

Socialism is either the unluckiest political movement in the history of political movements, one that just happens to keep intersecting with the careers of monsters, or there is something about socialism itself that throws up monsters. There is nothing wrong with Venezuelans, and nothing unusual about them: Here at home, our own progressives dream of imprisoning people for holding unpopular political views, nationalizing key industries, and shutting down opposition media. They have black-shirted terrorists attacking people with explosives on college campuses for the crime of holding non-conforming political views. And they arent averse to a little old-fashioned Stalinism, either, provided theres a degree or two of separation: Bernie Sanders, once an elector for the Socialist Workers party, remains the grumpy Muppet pin-up of the American Left.

Socialism can be put into practice only by methods of which most socialists disapprove, Hayek told us.

Are we really so sure?

READ MORE: Venezuela on the Brink Venezuela Reaches the End of the Road to Serfdom Socialism Is Killing Venezuelans

Kevin D. Williamson is National Reviews roving correspondent.

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Venezuela's Starving Population -- Socialism Is to Blame | National ... - National Review

Jeremy Corbyn’s hard-line socialism and Bolivarian aspirations … – FinanceFeeds (blog)

The thought of Tier 1 FX desks being run by teams of entitled, unaccountable gray cardigan-wearing Caravan Club members with civil service pension plans should be enough to send the entire industry striking up prime brokerage relationships in Hong Kong, New York and Singapore.

Just one month remains before Britains electorate goes to the polls to elect the prime minister that will lead the country for the next four years after incumbent premier Theresa May called a snap General Election two weeks ago.

Never since the dark days of the late 1970s has there been such a polarization between potential candidates, Theresa Mays evident attempts to emulate the late and great Baroness Margaret Thatcher a far cry from opposition leader Jeremy Corbyns old-fashioned extreme left aspirations.

It is entirely possible to listen to a speech by Mr Corbyn, or read his party manifesto, whilst reminiscing over the several meter high piles of refuse adorning the streets of every town and city, the three day working week and the nationwide industrial disobedience that brought Britains proud industrial empire to its knees forty years ago.

There are far more considerations this time than socio-economic preferences, however, as todays world is an electronic one, and Londons financial markets economy, which leads the world and is responsible for 176 billion in revenues and is so efficient that it employs only 0.0009% of the European Unions workforce yet produces 16% of all tax receipts for the entire 28 member states and has a 76 billion trade surplus.

It is patently evident that Londons financial sector especially the non-bank electronic trading sector with its prime of prime brokerages, connectivity and integration suppliers, and their relationship with the eFX divisions of Canary Wharfs Tier 1 banks is a pinnacle of commercial excellence and leads the world.

Not very much scratching beneath the surface of Jeremy Corbyns hammer-and-sickle toting shadow cabinet is required to note something quite sinister, that being the socialist Labor Partys disdain for Britains largest and most revenue driving business, Londons financial markets industry.

Just three years ago, there was a substantial amount of discourse mounting in London with regard to the European Unions predilection for the intrinsically socialist Tobin Tax on transactions that are placed in trading financial instruments.

That has now gone completely quiet, as Britain opposed it on principle and has managed to fend it off, however in 2013, eleven European Union member states, all of which were led by left-wing governments, announced their wish to move ahead with introducing a financial transactions tax.

At that time, the nations which include France and Germany intended to use the tax to help raise funds to tackle the debt crisis, and the tax had the backing of the European Commission which was reinforced after the 2014 election the highly unpopular Jean-Claude Juncker as President.

The other countries that wished to introduce it were Italy, Spain, Austria, Belgium, Greece, Portugal, Slovakia, Slovenia and Estonia, all nations with absolutely no place in the worlds highly advanced financial markets economy. Greeces government accountants, when not asleep for half of the day, cannot tell the top from the bottom of their balance sheets, Italy is rife with corruption, Portugal is agrarian, Belgium has invoked outright bans of retail electronic trading instruments and Slovakia, Slovenia and Estonia have absolutely no Tier 1 bank presence.

Jeremy Corbyns policies echo this line of thinking.

The Tobin tax was originally proposed to target the FX market when it was orchestrated by James Tobin in the 1970s, and whilst Britain has managed to remain free from its burden until now, Jeremy Corbyn is a staunch advocate of implementing it.

In September 2015, Jeremy Corbyn and Shadow Chancellor and equally leftist John McDonnell made a schedule to meet four times per year with a seven-strong group comprising of economic academics (rather than business leaders) one of which was Anastasia Nesvetailova, a self-designated expert on the international financial sector and its role in the global financial crisis of 2007-09. Ms. Nesvietailova, is an academic who spends her day in the classroom rather than the boardroom, thus is a theorist and has no practical experience. Just the type of policy advisors favored by the left.

During one particular conversation, the Labor Partys support for the implementation of the Tobin Tax on all trading transactions was raised, as was, rather alarmingly, the potential of a Britain free of dominance of the financial sector.

Bearing this in mind, it is worth looking at John McDonnells credentials and viewpoint.

Mr. McDonnell is a former trade unionist who backs renationalizing banks and imposing wealth taxes. He actually lists generally fomenting the overthrow of capitalism as one of his interests in the Whos Who directory of influential people. He also advocates the complete public ownership of all banks.

Mr McDonnell has served as Chair of the Socialist Campaign Group in Parliament and the Labour Representation Committee, and was the chair of the Public Services Not Private Profit Group. He is also Parliamentary Convenor of the Trade Union Co-ordinating Group of eight left-wing trade unions representing over half a million workers

The thought of Tier 1 FX desks being run by teams of entitled, unaccountable gray cardigan-wearing Caravan Club memberswith civil service pension plans should be enough to send the entire industry striking up prime brokerage relationships in Hong Kong, New York and Singapore.

Mr McDonnell has also said publicly that if he was able to, he would have assassinated Margaret Thatcher in the 1980s, a comment that when challenged, he retracted and said it was a joke.

Well, Mr McDonnell, that kind of extreme anti-business mentality combined with a will to bring the entire financial markets sector to its knees in the rebellious quest for overthrowing capitalism is not welcome.

Mr McDonnell wrote in 2012 that a financial transaction tax would halt the frenetic, madcap speculation in the City and raise money for infrastructure investment.

If the City resists then lets make it clear that capital controls would follow, he said in a piece for Labour Briefing, a left-wing website.

He has also said he wants to take the power to set interest rates away from the Bank of England and to give it back to government. This would reverse a decision by the Blair government to let the central bank decide monetary policy.

If his choice of senior cabinet ministers is not enough to ensure that this odious relic of the dark days of socialism stays out of office, Mr. Corbyns affection for Venezuelan communist dictator Hugo Chavez should do the trick.

In 2013, Mr. Corbyn tweeted Thanks Hugo Chavez for showing that the poor matter and wealth can be shared. He made massive contributions to Venezuela & a very wide world just after president Chavez passed away.

The hard-left policies of Mr Corbyns idol Hugo Chavez have left a once-rich nation brutalized and devastated and with 2,200% inflation, strict capital control laws and an inability to do business with any free market nations.

Venezuela shows quite clearly just how catastrophic socialism is. So you might then expect those well-meaning folk who held up Chavez as a paragon to admit their mistake. Naomi Campbell, Diane Abbott, Seumas Milne and Owen Jones in the UK; Sean Penn, Oliver Stone and Michael Moore in the US. Not a peep from any of them.

Hugo Chavez successor Nicolas Maduro has turned out to be a first class economic incompetent. In 2016, imports collapsed by more than 50% (largely due to socialist trade sanctions) and the economy nosedived by 19%.

The budget deficit is around 20% of GDP. The minimum wage is now the equivalent of 25 a month. Conversely, Londons financial sector employs several middle managers between the ages of 25 and 35 who easily earn between 150,000 to 200,000 per annum, rising to over 500,000 for a senior executive position, and professional mobility the chance of switching to new firms and accelerating ones career is among the best in the world.

After a Central Bank estimate that suggested that the Venezuelan economy had contracted by 19% last year was leaked to the press, Mr Maduro fired the banks president and replaced him with a Marxist loyalist demonstrating another very problematic aspect of left wing control, censorship and that anyone who speaks against the ideology, whether right or wrong, will be removed from office.

Up to 640 billion of oil money was lavished on the countrys poor during the oil boom years, creating a gargantuan dependency culture. The country quintupled its national debt and hundreds of thousands of homes (of questionable construction quality) were handed to the poor. President Chavez created a massive and unsustainable bubble which is now beginning its slow, painful collapse.

At the heart of Venezuelas economic chaos lie market distortions. Gasoline is sold locally for less than 1 British pence per litre and it receives 12 billion of state subsidies a year. The country has a complex monetary arrangement that makes use of three different exchange rates simultaneously.

This feeds rampant corruption because those with close connections to the president can buy dollars from the state at 10 bolivars a dollar but sell them at 3,300 bolivars a dollar on the black market a classic case of do as I say, dont do as I do.

Price controls have made it unprofitable for small businesses to sell staple goods, leading to widespread shortages. Carjackings and kidnappings are now epidemic. Caracass murder rate is 80 times higher than that of London, which over the last 15 years has become very safe indeed, especially in Central London, and in particular, the Square Mile where it would be extremely rotten luck to have even so much as a wallet stolen from a pocket.

It does not bear thinking about should a government with these views and ideas which are aimed at instilling a new world order gain office, hence London will likely be business as usual on June 9 once the sensible rather than anarchic have done the right thing at the polling booths.

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Jeremy Corbyn's hard-line socialism and Bolivarian aspirations ... - FinanceFeeds (blog)

Ian McShane: I had free further education under socialism – Big Issue

Ian McShane has told The Big Issue how he benefitted in his teenage years from socialist rule but was glad to escape his home town.

In this weeks Big Issue, the veteran actor also talks candidly about his drinking problems, and the moment that changed his life.

I got on with everyone when I was 16, says McShane. Atschool there were all these groups you had the teddy boys, the swots. But I got on with them all. Im glad I got the f**k out of Manchester but you never escape your childhood.

Im glad I left, but you never escape your childhood

I love going back, he continues. I still see my oldest friends. And the odd ex-girlfriend I had when I was 16, which all seems very sweet now I look back on it.

I had a happy life there. I had the best of the NHS and free further education I was brought up in the first 15 years of socialist rule.

In this weeks Letter to My Younger Self, the Lovejoy star currently appearing in Jawbone and American Gods says that he recognisedthe significance of meeting his wife for the first time.

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The Big Issue has inspired the launch of 120 street papers globally, including sister titles in Australia, South Africa, Japan, Taiwan and Korea.

As soon as I saw her, 38 years ago, I thought, Aaah shit, Im in trouble,' he says.I wasnt looking for a long-term relationship so I did just go, oh Christ. You cant explain it. Love is what it is. If Id waited a moment longer I might have walked the other way.

If I could go back to any time in my life it would be just a week after we met. I was in LAX airport, leaving to go to Britain, thinking Ah, great girl, Ill be seeing her again in two weeks. And she suddenly turned up to say goodbye. I was sitting having a beer and she came up and said, Hello darling, I love you. I think thats one of my happiest memories.

Read more from Ian McShane on his alcoholismand relationship with his father inthis weeks Big Issue, on sale now

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Ian McShane: I had free further education under socialism - Big Issue

Socialism: The View from Venezuela – Reason (blog)

YouTubeProtests against the long national nightmare of socialism continue in Venezuela, as the death toll over the last month has risen to 37 and over the weekend demonstrators tore down a statue of Hugo Chavez, the former president who ushered in the era of chavismo, his Latin American flavor of socialism, or "Bolivarian socialism"the protests represent the inevitable end to any socialist experiment.

In his heyday, Chavez was heralded by a number of leftists in the West as a model of democratic socialism. After Chavez's 2013 death, filmmaker Michael Moore gushed over Chavez's nationalization of the oil industry. "He used the oil $ 2 eliminate 75% of extreme poverty, provide free health & education 4 all," Moore tweeted. U.K. Labour party leader Jeremy Corbyn said Chavez showed the world that "the poor matter and wealth can be shared" and that he made massive contributions to Venezuela" and the world.

Chavez was succeeded by his vice president, Nicolas Maduro, who continued Chavez's policies sans the kind of charisma that blinded some to the incompetence of Chavez and the incoherence of Bolivarian socialism, and eventually without the high oil prices to subsidize profligate government spending either. Left to its own devices, the centralized planning of socialism has failed spectacularly in Venezuela.

America's favorite homegrown socialist, Bernie Sanders, once pointed to Venezuela as a model too.

"These days, the American dream is more apt to be realized in South America, in places such as Ecuador, Venezuela and Argentina, where incomes are actually more equal today than they are in the land of Horatio Alger," Sanders wrote in a 2011 op-ed. "Who's the banana republic now?"

Last year, the average Venezuelan living in extreme poverty lost 19 pounds amid mass food shortages largely created and then exacerbated by government price controls60 percent of Venezuelans said they had to skip at least one meal a day. Maduro joked that the "Maduro diet," as the government-induced starvation has been called, was leading to better sex, to the applause of government workers and party loyalists but few others. There have been shortages of food as well as goods like toilet paper, deodorants, condoms, and even beer.

Some hardline socialists have been more critical of Chavez, criticizing the Western left's infatuation with Chavez, who the Socialist Party of Great Britain complained did not really understand socialism. Their argument boiled down to the fact that, to paraphrase Rick & Morty, Chavez should be trying socialism with extra steps. The Socialist Worker condemned Maduro's slide to authoritarianism earlier this month, even though the authoritarianism started soon after Chavez first came to power. The idea that socialism can ever effectively exclude cronyists when it accumulates the kind of power to which cronyists are attracted is preposterous.

Sanders, when he ran for president last year, no longer brought up the Venezuelan example of socialism. Instead he leaned on Americans' misinformed view of Scandinavian countries as socialist paradises. But Scandinavian countries like Sweden have "deregulation, free trade, a national school voucher system, partially privatized pensions, no property tax, no inheritance tax, and much lower corporate taxes," as Johan Norberg wrote last year.

Western leftists should not be allowed to distance themselves from the spoiled fruits of socialism in Venezuela, which they embraced only a few years ago. Countries across South America welcomed different versions of socialism over the last two decades, often to praise in the West, and, as The Economist noted in its latest Democracy Index, South American voters have tired of this left-wing populism and are slowly returning to more sensible, right-of-center free market policies.

Free market policies also happen to be the best antidotes to the currently ascendant populism and economic authoritarianism, as they have the power to best mitigate the kind of economically poor conditions in which populism thrives in the first place.

Maduro, and diehard supporters, blame the United States for Venezuela's woes, an increasingly unbelievable assertion in the face of evidence to the contrary. Even ThinkProgress, in a piece on the catastrophe in Venezuela that manages to avoid mentioning socialism (or chavismo or Bolivarianism for that matter) a single time, dismisses Maduro's fever dreams of U.S. responsibility for Venezuela's self-inflicted economic and political wounds.

The opposition in Venezuela won control of the legislature in elections in 2015, which was followed by the Maduro government working diligently to consolidate power even further. Protesters in Venezuela have demanded early elections, while Maduro has proposed a new constitution protesters call a coup.

The imprisoned opposition leader Leopold Lopez has called for the protests to continue.

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Socialism: The View from Venezuela - Reason (blog)

Huawei mixes Silicon Valley drive with Chinese socialism – Financial Times


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Huawei mixes Silicon Valley drive with Chinese socialism
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The vibe on the Huawei campus, spread out across two square miles in the city of Shenzhen, north of Hong Kong, is more state-owned enterprise than Silicon ...

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Huawei mixes Silicon Valley drive with Chinese socialism - Financial Times