Mocking Bad Government in America…but Be Thankful We’re Not Venezuela (at least not yet)

Daniel J. Mitchell
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Posted: Jun 16, 2014 12:01 AM
Mocking Bad Government in America…but Be Thankful We’re Not Venezuela (at least not yet)

’ve written a couple of serious posts about the death panels at the VA’s government-run health facilities.

I think it’s particularly important to understand that the problem has nothing to do with funding levels. Instead, it’s about the chronic inefficiency of government.

But sometimes mockery is more effective than analysis, and this Remy video, produced by Reason TV, is definitely worth sharing.

Enjoy.

By the way, if you like the Remy videos from Reason TV, here’s one about Sandra Fluke and the birth control mandate, one about the TSA Hokey Pokey, and two more Christmas-themed songs about the TSA (here and here).

But I want to spend the rest of today’s column celebrating the fact that America is not Venezuela. No matter how much we complain about the inefficiency, waste, and corruption in Washington, things could be worse.

Much worse.

Here are three stories to give you an idea what total statism produces.

First, I’ve written about how government intervention is causing toilet paper shortages and food shortages in Venezuela (also in Cuba). Well, there’s also a shortage of water, as reported by Bloomberg.

The rationing of tap water amid a drought and a shortage of bottles because of currency controls are forcing people to form long lines at grocery stores and bottle shops as soon as deliveries are made. …a government-mandated water rationing plan in Caracas and hot weather are fueling demand as supply shrinks. “I haven’t been able to find 5-liter bottles of water in the supermarket for the past two weeks, and there haven’t been half-liter bottles this week,” Maria Hernandez, a 36-year-old secretary, said in an interview in Caracas today. “I have four at home, but I’m afraid that they’ll run out and that I won’t be able to find more. They ration water at my house on Wednesdays.”

Though maybe water rationing is a good thing. At least when you live in a nation where the water that does (sporadically) materialize is contaminated.

Some areas of the city receive water service only three days a week, with most neighborhoods going without water at least one day a week. When water does flow, few residents dare to drink it because of contamination.

So why is there a problem? Because the government doesn’t let the market operate.

Regulated prices for bottled water have not been raised since November 2011, industry association Anber said in a May 19 statement. Since then, consumer prices have risen 110 percent, according to central bank data, while the bolivar has lost 87 percent of its value on the black market, according to dolartoday.com, a website that tracks the value on the Colombian border.

Our second story also comes from Bloomberg. It’s about the one thriving sector of the Venezuelan economy.

The arrival of a Liberian-flagged freighter with Ukrainian, Arab and Filipino sailors spells one thing for Elena — dollars. And greenbacks are king in Venezuela, the 32-year-old prostitute says. …Prostitutes more than double their earnings by moonlighting as currency traders in Puerto Cabello. They are the foreign exchange counter for sailors in a country where buying and selling dollars in the streets is a crime — and prostitution isn’t. Greenbacks in the black market are worth 11 times more than the official rate as dollars become more scarce.

Indeed, some women may be turning to prostitution because the government is doing so much damage to the economy.

Prostitution has become the only boom industry in Venezuela’s biggest port. …“Before I was working to support my kid and my mom; now I support my entire family,” said Paola, a prostitute who like Elena comes from Zulia and declines to give her real name. “Dollars are the only way to get by. The bolivar wages of my uncles and cousins barely mean anything now.” …“We can make more in two hours here than working in a shop in a month,” said a prostitute who calls herself Giselle. …For women like Giselle, Elena and Paola, prostitution for dollars has become a lifeline keeping them from poverty. “We haven’t studied, we have no education. What would we do now if we stopped?” said Giselle. “Work for a minimum wage that doesn’t even pay for food? If we wouldn’t be here working the scene, we would be living on the streets.”

Amazing. Venezuelan women are famous for their beauty, but the economy is such a mess that they earn twice as much money by trading currency. Way to go, big government!

Last but not least, our third story shows that government intervention is even making death more difficult. Here are some excerpts from a report in the UK-based Guardian.

…even in death, Venezuelans are afflicted by shortages. Coffin production has dropped between 20% and 30% this year for lack of materials, forcing funeral and burial delays… Pedro Navarro, former president of Venezuela’s funeral parlor association, has blamed lagging production at the state-run foundry Sidor. …Demand for coffins has grown in recent years. Venezuela has one of the world’s highest murder rates. People have been coping with shortages since 2006, long before the death from cancer last year of the pro-socialist president, Hugo Chávez.

The moral of the story is that government interventions such as price controls and government policy mistakes such as inflation have very negative consequences for ordinary people. It’s not just shortages of water and a prostitution-encouraging desire to escape the local currency.

The entire economy is a mess.

Empty shelves in shops and long queues have become a fixture of the daily hunt for staples such as milk, cooking oil and flour. Pharmaceuticals and medical supplies are also scarce. The anti-government street protests that began in February by an emboldened opposition have grown with the shortages.

So when someone tells you that big government is good for people, ask them for an example of successful statism.

And if they’re open to rational evidence, show them this chart. It shows that Venezuela used to be twice as prosperous as Chile.

But Venezuela has stagnated because of statism and Chile has boomed because of free markets. Kind of hard to argue with these facts (though Chile’s current crop of politicians apparently don’t like success and are seeking to expand the burden of government).

Let’s close with some very accurate humor. This poster nicely summarizes the difference between capitalism and statism.

Or the parable of the two cows also does the job.