Venezuela is a basket case and big government is to blame

A great post here from Economist Dan Mitchell at the International Liberty blog.

In particular, I appreciate the Theorem he includes in the blog:

Social-Collapse-Theorem

The best quote of the article is the conclusion after Mitchel chronicles the Venezuelan malaise:

The entire story is filled with heartbreaking stories of suffering families and maddening anecdotes about how unconstrained government has wrecked a potentially rich nation.

Which gives me a good reason to make the most important point of this article.

All the bad policies in Venezuela were imposed because politicians supposedly “cared” about ordinary people. That was the rationale for higher welfare payments, minimum wages, price controls, subsidies, and all sorts of other “compassionate” policies.

Yet the news reports show that it’s regular people who are now suffering the most because excessive government is causing an economic collapse.

Which is why this chart comparing Venezuela, Argentina, and Chile is so powerful. Ordinary people did the best in the nation with a government that did the least.

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