The real cost of socialism: Venezuela suffers under severe shortages of flour, butter, milk and diapers
by: J. D. Heyes
Thursday, April 03, 2014
Rising unrest and turmoil in Venezuela are side effects of the ugly, predictable face of socialism, as evidenced by the underreported realities of life in a country besieged by a bankrupt political ideology.
It wasn’t always this way in the South American nation.
At the turn of the 20th century, Venezuela was one of the poorest economies in Latin America. But by 1970, the country transformed itself into the richest nation in the region, whose economy was larger than some other nations including Greece, Israel and Spain.
But between 1978 and 2001, several economic factors led to a sharp reversal of the country’s gross domestic product; non-oil GDP fell by nearly 19 percent, and oil GDP (Venezuela is one of the world’s top oil producers) by more than 65 percent (reflecting the reality of the global oil market at the time).
Enter centrally planned, government-controlled economic model here