For years, Americans watched in horror as Venezuela steadily descended from Latin America’s most prosperous nation to abject poverty. Many wondered, how could this happen?
The essential reason is: The Venezuelan government, led first by Hugo Chavez and then by Nicholas Maduro, seized control of the nation’s production and trade. Beginning in 1999, the government began to dictate who could produce and trade and on what terms. Citizens could no longer take economic actions based on their own judgment. They could only act as government officials deemed appropriate.
In March 2020, America became Venezuela when the lockdown was imposed. Suddenly, government officials could dictate who could produce and trade and on what terms.. Citizens could no longer take economic actions based on their own judgment. They could only act as government officials deemed appropriate.
It took many years for government control of economic activities to reduce Venezuelans to poverty. Their policies to control the economy were enacted slowly and gradually, and the results manifested themselves over the course of years. The lockdown imposed similar controls on Americans in one fell swoop. And the consequences were seen within weeks.
When the Venezuelan economy tanked as a result of the government’s policies during Chavez’s first years, the government rushed in with a variety of aid packages. When the American economy tanked as a result of the government’s policies during the first months of the pandemic, the government rushed in with a variety of aid packages. In both countries, the aid was/will be only temporary.
The policies of Chavez and Maduro reduced millions of Venezuelans to dependence on the government for their very existence. The lockdown has done the same to Americans.
Government isn’t the solution to poverty or pandemics. The freedom to produce and trade is. Government controls and restrictions on production and trade prohibits individuals from lifting themselves out of poverty or solving the problems posed by pandemics.
Freedom provides the social environment in which individuals can pursue ideas that others deem foolish, like the light bulb, the automobile, and the smart phone. Freedom provides the social environment in which the innovators can move all of mankind forward, including their critics and detractors.