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Socialism rears its ugly head once again in the failed nation of Venezuela. As the country’s leaders attempt to slow their free fall to oblivion, businesses and their employees are being forced to make tough decisions.
The 3000% increase in minimum wage, announced last month by President Nicolas Maduro, went into effect this week. As a result, the economic woes for the citizens of the nation have spiked once again.
Venezuela Raises Minimum Wage 3,000% and Lots of Workers Get Fired
Starting this week, 7 million employees are guaranteed 1,800 bolivars a month — worth about $20 at the black-market rate. President Nicolas Maduro intended the mandate as political boost, but it’s having the opposite effect as companies, already hit by Venezuela’s epic economic contraction, tell workers they can’t afford to keep them.
While there have been many similar moves in the past, never has one been so disruptive, arriving amid hyperinflation, depression and devaluation. Some employers are restructuring costs, rejiggering pay scales and negotiating settlements with workers. Others are simply dismissing people. Much of the action happens secretively as companies try to avoid punishment by the government, which has been jailing those it believes are flouting the rules.
My Take
The failures of socialism are an easy target. If you’re reading this, chances are strong you already recognize how disastrous socialism is for any economy, even one access to more oil than any other.
Not even America could withstand the detrimental effects for long.
In lieu of attacking the easy target, it’s time we start looking for solutions. Venezuela must throw in the towel. They’re way beyond the need for aid and they can’t pay back loans. At this point, someone needs to step in and take over. This is, of course, unlikely as the socialist regime has no intentions of ever relinquishing power. They’ll allow their people to starve on the streets before they give up power.
Is a coup the only solution? Is it even possible without outside help? Where would outside help come from if it did? Can the United Nations do anything? How about the United States, China, Russia, or the EU? All have problems of their own and while the oil is an interesting enticement, nobody would risk making a deal in a country with such disarray.
Perhaps the only solution is to wait for the suffering of the people to become so pronounced they have no choice but to organize and take their country back by force. Unfortunately, this is not the type of event that is likely to yield positive results. What could they do if they were somehow able to win?
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