Fox News posts an Associated Press story that 73% of families in Venezuela are in poverty. Give it another few years and maybe they can reach 100% poverty.
Isn't that socialism stuff wonderful? In Maggie Thatcher's words, the government in Venezuela has run out of other people's money to spend.
AP tries to blame the poor economic performance on low oil prices, admittedly a factor. However, the demotivating aspects of redistribution on otherwise highly productive people cannot be overlooked.
Knocking yourself out at work makes no sense if harder work doesn't equal more income and a better life. In the absence of an obvious quid pro quo, folks would rather have the leisure, particularly in Venezuela's hot, humid climate.
Price fixing demotivates manufacturers and suppliers who cannot make a decent return on investment; soon shelves in the shops are bare. Bottled water and toilet paper are said to be in short supply, no laughing matter in a third world country with nonpotable tap water and high levels of dysentery.
