Socialism and price controls are taking their natural path in Venezuela. Government is not content with hammering the economy into pieces; now its Praetorians have been authorised to shoot hungry protestors if they get a bit too uppity.
As Venezuelans face chronic food shortages and their country’s economic crisis deepens, its government has authorised its armed forces to use lethal force against protesters if they believe their lives are at risk during demonstrations.
This is government all over. Having made the crises, it creates dupes and targets at which to strike. This is the cycle of government:
It prints up money to create the false illusion of economic wellbeing. It’s not wealth. It actually drains wealth from real assets, but it’s a short economic sugar rush. It usually works because hardly anyone looks at money supply stats. They see only jobs and goods in the shops and think all is good.
The extra money bids up prices. Taken to excess, price inflation accelerates. At this point government often blames mysterious “speculators”. Price controls are imposed, which even mainstream economists realise always lead to shortages. Venezuela is short of everything. Long queues exist for basic staples, people are going hungry. They protest and the government responds with threats of deadly force. This is government, and this is a crises completely, absolutely and 100 per cent caused by government intervention in the economy. Its money printing shot prices sky high, then its price controls choked off supply.
Only less government, fewer regulations and much more free markets can possibly resolve the situation, but as always it’s a hopeless situation. People are conditioned to call for more government to resolve problems. That the problems are caused by government in the first place is rarely seen. If today’s leaders cannot make us better then we’ll vote for another bunch of distorting, interventionist leaders. That’s what they’ll do, when all along they need no leaders, just free markets.