Hugo Chavez, the socialist leader of Venezuela is giving the world yet another example of how collectivism works. Under his leadership the Venezuelan Bolivar has been experiencing rapid depreciation. As of last month, April 2010, the rate of decline is at an annual rate of 32.9%.
His government has nationalized privately owned oil companies (sixty of them), metal companies, newspaper companies, universities, banks, food supermarkets, the communications industry and general merchandise retailers. The justification given in many cases was expressly to control inflation. The Venezuelan stores of a large French retailer were closed without notice because they raised their prices in response to inflation.
The government is running all these industries and inflation is running rampant. Nevertheless, Chavez reasons the problem must be elsewhere, in the private sector. He believes he has found the cause. Venezuela imports most of its food. Hugo, in his fractured English declares “Venezuelan businessmen buy abroad, come here and ask for more than it really costs”. Abomination! If businessmen will not operate at a loss Chavez will take away their businesses and do it for them.