ADSactly World - Venezuela and the absence of respect towards private property
It has been covered in previous articles how Venezuela’s transformation into the current disaster slowly began to take form, beginning with how the population’s misconception about democracy ultimately caused its very destruction.
Little by little, certain totalitarian measures, disguised as something good that could help people, started to be applied with a lot of popular support, but they were all designed to undermine the people’s freedom in every sense, and transfer even more power and control to a political party that from the beginning, has only cared about their own interests, being more that willing to destroy an entire country as long as they are the ones governing it.
Today, we are going to explore how and why was private property attacked in Venezuela.
Understanding nationalization and expropriation
Nationalizing companies means that the largest company in a certain industry, or the entire industry, goes into the hands of the government. When they nationalize an entire industry, the government keeps the monopoly of said industry. No person or entity can create a company that participate in said sector and citizens have only one option, the one offered by the government. The nationalization is done together with expropriation policies that work in a similar way and share the same goal, that is, to give the political party direct access to the money of these companies.
Expropriating private companies means that after a certain moment a company that was successfully built by a single individual or group of people thanks to their effort, vision and the employees, will now be operated by the government. Understanding this is very important, because governments try to convince people that the company is nationalized or expropriated so they can "return it to the people", but people and government are not the same. The government and the people are completely different things by definition. What politicians actually want when they talk about nationalizing and expropriating is to make it easier for them to steal money.
In the typical state of corruption, a politician wants money and the business owner has it, so the politician is forced to deal with the businessman who in exchange for his money and resources, wants favors and a privileged treatment, but when a company is nationalized they remove the businessman from the picture, and are then able to directly manage the company’s resources. They no longer need to deal with third parties, and now they are free to take what they want when they want it.
But this doesn’t reduce corruption, everything remains as corrupt as it was before the nationalization, if not worse, there can be the case with companies that were very important and appreciated because they created jobs for the people and provided a valuable service, but after being nationalized are transformed into inoperative entities, sometimes even being unable to continue with their activities due to their inefficiency.
What happened in Venezuela?
Chávez nationalized multiple companies and took full and direct control of PDVSA, which was already nationalized since 1975, but despite being a public company, it operated outside the government with total independence, and the country's budget wasn’t conditioned by PDVSA's revenues. So when Chávez took control over PDVSA, for practical purposes it was the same as nationalizing it.
The first thing that happened was that PDVSA board of directors was replaced by people who had no proper knowledge about the oil industry, but had strong ties with the government. They wanted to control PDVSA because it was and still is one of the most important oil companies in the world. They knew that without controlling PDVSA’s money, it would be very difficult to sustain their future actions. The new slogan was "Now PDVSA belongs to everyone", which actually meant they finally were able to have direct access to thousands of millions of dollars coming from the oil industry.
They also nationalized other "strategic" industries to have direct access to their resources. People were told that it was necessary to nationalize private companies because their rich owners were thieves who took advantage of the people, nationalizing companies would then, guaranteed that no Venezuelan would be without access to the most important services. But their real intention wasn’t to give anything back to anyone, it was to get rid of the businessmen and satisfy their need for more control.
No nationalization brought improvements to people's lives. Before the electricity was nationalized, no one suffered from power outages. Private electricity providers worked very well. Everyone had electricity. Some people, the poorest, could not pay for electricity and stole it from the street, and those who paid for the service were guaranteed to have electricity. When this industry was nationalized, things changed, and the only guarantee was that of suffering from power outages on a constant basis.
When these anti freedom measures ended up ruining the private entrepreneurship, and the food companies stopped producing their products, the government accused them of hoarders, and expropriated those companies, which gave them the capacity to produce food for a short period of time that they could sell in their own government owned grocery stores to stop shortages, but this was obviously an unsustainable situation.
The nationalized companies ended up collapsing, and for anyone going to a grocery store in Venezuela to buy what people normally buy for their homes in any normal country, it would be close to impossible to find every product that is needed. Even if some people have the money, there aren’t available products. Sometimes there is no meat to eat, and this can last for months. A few years ago there was the famous toilet paper shortage that was reported by several news websites. Finding available milk is not something that happens everyday, the same can be said about pretty much any basic food. The shortage is widespread and permanent. That is what happens when private companies are attacked and the free market is destroyed.
Everything the government nationalized ended badly, not only because they were corrupted people who didn’t know how to efficiently manage a business, it was also because nationalizing the companies turns them into an entity that no one takes good care of, there is not a person that benefits from the company's optimal functioning, they are more focused on stealing the company’s resources and then go and do the same to the next one, and therefore people aren’t bothered with doing a proper job planning the finances, the production and other tasks typical of every business. This destroys the structure of a country and in Venezuela, right now, most of the products are imported because local production is practically non existent.
Thus, the nationalization of companies is done with the goal of taking over more resources, to dispose of people's money beyond taxes, and with the new resources coming from the nationalizations, they can do whatever they want. From bribing people and financing massive political campaigns, to even helping other allied politicians with their own campaigns in their own countries.
All of that is not the stated intention of course, they say to the people that nationalizations are happening for their own benefit. To guarantee services to the poorest, or to avoid excessive prices. In the end, what happens is that the government takes away money from companies like a vampire sucks the blood of a victim. The companies die, the country is left without good services, and the totalitarian government increases its power.
Authored by @dedicatedguy
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One very important factor that maybe 90% of the world are not understanding or failing to see , is the sad fact that country by country is falling by the same evil group which is " The New World Order", Venezuela is a product of this group, Nicaragua is next and so on. There is no stopping them because those who have a bit of power to do so are either paid out or killed. We can blame my mother or Chavez or Maduro,Castros or the dog next door but the whole situation is a process to brake down the economies of each and every country in the world. For those who have a problem understanding this post and believe you are living in a fantasy and bit under educated. Start by reading what is the " New World Order " take a look at a USA one dollar bill, ask your self why the Illuminaties? . Finally why do you think no one is helping Venezuela? the answer is so simple : This is meant to be.
Russia , China and Cuba are exploiting the resources of this great country with the direction of the United Nations.
Colombia is already suffering the affects of the migration from Venezuela and soon they'll have people coming over from Nicaragua.
I just can't believe that every article that I read is only an illusion of the real plan that is going on.
Chavez sold Venezuela out to the powers, that was his order , then they kill his because he did not wanted to join the club .
Maduro on the other hand knows that if he don't go along , he too will be put away like a dirty rag.
The Venezolanos are suffering and will continue to do so , there is no stopping the New World Order I sadly say it. Freedom is something that will just have to dream about.
We are living in a fake world,nothing is real and people just don't care , the obvious is only an act by the powers.
Also Trinidad and Tobago which is 16miles of the coast of Venezuela is being heavily affected with illegal migration, drug smuggling, gun smuggling and hundreds of murders as a result of the gun smuggling. Ofcourse local gangsters are mostly the killers but without the illegal guns it would not be so easy to rob, rape, kill etc
Wow, I was in Trinidad about 6 years ago and I found it so beautiful , I loved the people , specially the children. So sad that there is a mad group controlling the best places on our earth.
No. These crises are nothing new. Europe suffered them last century. Now some people in America seem to never learn about old political mistakes and are doing them all over again.
If everybody owns something, nobody does (except the people at the top of the pyramid). Notice how the socialistic society, where there is supposedly an absence of greed, benefits only those at the top of the power structure. Is it possible that they are the greedy ones?
Nice post that summarizes the situation, which is comparable to that of Brazil.
Not so long ago, I supported Chavez. I thought his ultra-state policy was socialism, and I thought he was fighting private property by running the printing press.
Since then, I have read Marx, and I have understood that Chavez and Castros are the worst enemies of the people, those whom he calls to fight rifle in hand in his address of 1850: those who take power just after a Revolution, those who claim to control the production for the people but without it, those who disarm the people and say: "The Revolution has won now that we are in power," these are the most dangerous enemies of a people.
Chavism, like Castrism, like Leninism, are NOT progressive forms of socialism. They are forms of monarchism: state bureaucracies, which control the whole apparatus of production, out of all democratic control, which sinks rapidly into absurd and costly policies, based on the superstition of the printing press.
If we cut off the sound of the speeches and concentrate on the analysis of the mode of production, Chavez's Venezuela looks very much like the France of Louis XVI.
This “Expropriating” takes away all motivation individuals would have to build a successful company at first. That reminds me corrupt government all over the world including US. But you are right, it’s diferent corrupted government being paid by companies and nationalization. It definitely doesn’t lead to any good. Recently, I’ve heard about inflation in Venezuela getting even worse. No one could have imagined it just a few years ago. As you mentioned, with nationalization everything got worse, even electricity supply is a disaster. Venezuela is a living proof of nationalization not working at all. Government should work for the people and the the other way. I pray for people in Venezuela and hope it will all change one day.
Yeah, the US has surely its doses of corruption, but it cannot be compared with Venezuela because in the US it is very possible to create companies, create innovations and have a good life with normal jobs, that is why tons of people are always trying to live in America. In Venezuela people are escaping like there is no tomorrow. It is quite different.
The timeframe that went before the coming to intensity of Hugo Chavez in 1999 is known as the Fourth Republic, and it starts in 1958, after the topple of the autocracy of Peres Jimenez. Venezuela amidst the twentieth century was a poor nation, whose economy was commanded by agribusiness.
Be that as it may, step by step started to pick up force oil and gas division, which before the finish of the most recent century effectively involved over 90% of GDP (this is the offer of the oil business in the total national output today). The generally prosperous period in the life of the nation is ascribed to the 1960-70s, the way of life of the Venezuelan populace right now in the press is alluded to as "very high", in any case, with the stipulation – "in examination with other Latin American nations."
The cash that conveyed the oil and gas part to the Treasury was sufficient just to keep up a worthy way of life in the urban communities, the distinction in salary between the occupants of the town and the city turned out to be large to the point that the laborers were compelled to offer their territory and move EN masse to the urban communities, shaping there entire squares of self – development - "Barrios". Since the second 50% of the 1970s, the monetary circumstance in the nation started to break down.
The fall in oil costs and the General monetary emergency in the district has prompted the selection by the legislature of Venezuela in late 1989 of the proposals of the IMF as a feature of the change of the economy: cuts in social spending, the expansion in common levies, higher costs for gas and open transportation, and that's just the beginning. The nation has its own group of "junior reformers" and "the procedure has gone." Following the proposals of the IMF has caused mass challenges among the populace, the concealment of which prompted the casualties – as indicated by different sources, murdered a few hundred to 3,000 individuals.
When Hugo Chavez came to control, Venezuela's economy was a run of the mill "trumpet economy." Raw material introduction has prompted the way that the nation, situated in a great climatic zone, was compelled to import the vast majority of the nourishment.
With the fall in world oil costs, the item economy of Venezuela arrived in an extremely poor state, to pay the "bills" of social approach of Chavez wound up risky, the press progressively started to discuss the nation's default. As per a few specialists, the miserable consequences of the financial arrangement of President Chavez were because of the apathetic and erratic choices he made. Such a "mounted force surge" and irregularity in his activities got the end more mischief than great...
Just a quick correction, I don't think they don't exist, I think they aren't securely guaranteed by the state even if they are on paper. The numerous appropriations by the socialist party demonstrate that. Even if de jure these things are guaranteed, de facto they are not. I don't think the percentage of public/private ownership is the definition of whether something is socialist or not, I am evaluating the country on the principles by which it is being run, and state appropriation of private property is a typically socialist act. Always nice to discuss this with you.
I was born in Venezuela.
It has been a long time ago, and since all of the stated acts mentioned in the post happened, the country unfortunately has fallen in a spiral plummiting down to oblivion. The effects of which can be even be felt today. And even, they "try" to solve it but it will do more harm than good.
Fortunately enough for me, my family was smart enough to see what was coming before the massive expropiation of companies, and then we just moved to Spain. I don't remember too much as I was young (maybe like 7-8 years old?) and innocent. However, I really appreciate all the effort my family did for us.
As of today I live well. I just wonder, how powerful and free that country could have been if it wasn't taken by the wrong hands in the first place.
Yes, it is very wise to move to another country when this type of political movements start to get control. Venezuela has always had potential, what it lacks is the right mentality in a lot of the citizens, who end up making the political decisions that cause disasters that shouldn't be happening any more.
It will get a lot worse before it can get better. Most likely there will be a war.
USA backed as always
ENLIGHTMENT POST. Give describing from other point of view and improve our knowledge, and interesting to discus.
As a big oil producer then Venezuela relies more on oil commodities as a source of livelihood of the country. When high oil prices can all pay off easily. however, amid the lethargy of oil trade and falling oil prices would be a major source of trouble because there is no readiness to face an economic storm that could destroy the joints of the people's economy. The state can not guarantee its people. While the people who had been accustomed to fulfilled his desire to be struggling alone and increasingly depressed. Such a protracted condition will surely cause turmoil. If the turmoil does not get the right handling can cause chaos. Countries that experience chaos would be very easily destroyed both from within and due to influence from outside, especially other countries who want to fight over the cake of natural resources.
Because the root of the problem is the economy then the effort appears to nationalize the existing company. the basic idea is good because it aims to increase state assets and become additional state revenue,
Unfortunately, in efforts to nationalize it is not easy. there is always a problem.
To overcome this need extreme action.
Thank you @dedicatedguy
Thank you @adsactly
Thank you Steemit
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It has been sad to watch from afar how things continue to Spiral out of control in Venezuela. We continue to hear stories from the many Venezuelan users here on steemit about hardships and fear. So much has been taken away and there doesn’t seem to be an end in sight. Now to top it off there have been those who fear what might happen if the US gets involved and steps in. This can not be an easy situation for anyone to live in.
Right now, an intervention seems like the only possible solution. Local people are unable to remove them from power. Colombia will end up being affected by the amount of Venezuelans that will be crossing the border looking to receive some kind of help, and Colombia is a NATO partner. Taking this criminal organization away with international force is what should happen, otherwise Venezuela is lost.
This is something that is absolutely true and we all need to understand it. Gone are days when we could shout theoretical definitions and expect the people to nod their heads. We have all read this definition by good Abe in the school:
There was a time that this could have been true. Today the democracies have been hijacked by powerful entities in shadows that have not only monopolized the markets but the truthful fact is that they have monopolized the governments. We all notice this fact during the elections.
We cannot even find an ideal candidate to vote for anymore. Those of us who still vote only do so by the criteria of selecting the candidate on the the basis of him/her being the the least evil of all the available choices. This means we are not able to vote for the best but for the least worst. This is all happening after the fact that there still are many good people out there but they are eliminated in the preliminaries. This is a clear indication of how this system has been twisted and hijacked.
I think the ideal candidate would be the one who respects individual freedom the most.
Nothing new, politics has always been dirty.
All American millennials should go visit Caracas for a week. That might change their minds about socialism.
@adsactly OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOH my God I can see you don´t live in this country, you must be surrounded of coward people that decided to go to other countries that are worst than ours. Venezuela has freedom, electricity and food. We are having a mega inflation helped by USA and its measures and by the european union , and helped by a group of scoundrels that goes to any country payed by USA in dollars to talk awful things about this country, they want dollars, gold, petrol, diamonds, and all the things that this country produce. There is corruption, bad people like in other countries like in Southafrica, Colombia, USA, France etc but all you are saying is not all true. Come and see the good things we have and are going to have.
May be you are bad informed, but there are a big group payed by the oposition to make sabotage to electrical lines, some of them have died in the intent, they steel cable conexions to the telephone lines etc, we are really being suffering because this malandros. Venezuela is divided in two groups, one that is betting to a better country and the oposition that wants to sell the country to the FMI and you know how hard the gringoes work to filter in a country to obtain what they want, Venezuela is a very rich country. I know a lot about the fourth republic you don´t know how it was. Come here and live one week and tell me how you are going to be affected, poor people yes, in southafrica there a lot, and you have the apartheid, In Usa there are millions of children without a place where to pass the night and I am going to stop because I feel angry when people talk about Venezuela without looking around and their neighbours.
waoooooo, I'm Venezuelan living in Venezuela now I think you're quite wrong because those who led the country to bankruptcy and inflation that we have today has name and surname Nicolas Maduro Moros and his rotten dome, you're right that we are rich in minerals and that many countries want to come and take it, but we must also understand that to exploit these minerals we must invest in machinery that is foreign that we do not have in Venezuela, on the other hand those riches are being stolen by the government or you do not remember the reasoning of light that We had and the reasons were that they dried the guri to exploit minerals like gold and that today they are the ones who have those riches, in Venezuela there is no food, medicine, light, water, and stop counting part of that also the delinquency is not killing and everything financed by the government to the famous tupamaros I believe that you should get out of that mental cloud that you have as a chavista. Corduroy this type of people bothers me Venezuela is bankrupt and now a reconversion of 5 zeros waoooo not know where we are going to stop
@adsactly hello 👋 sir, Thank you very much Sir, you have done a very nice analysis of Venezuela, if we did not come to steemit then maybe we could not get so much education.
If Venezuela is socialist or not is not the issue. The issue is people are suffering.Who cares what type of government they have? Its the same as any other government it did not ask the people after telling them the truth. They lied to their citizens for their own gain and started a chain of events that ruined an entire nations economy. Socialist or capitalist a thief is a thief TF do i care about their politics if i am being robed?
It is important to know that so future mistakes can be avoided. Venezuela is not the first disaster that became true because people didn't know what happened after supporting political parties with this ideology. Now they know, but this will probably repeat itself in another country. It is like a cycle.
I was conceived in Venezuela.
It has been quite a while back, and since the greater part of the expressed demonstrations said in the post happened, the nation tragically has fallen in a winding plummiting down to blankness. The impacts of which can be even be felt today. Furthermore, even, they "attempt" to understand it however it will accomplish more mischief than great.Luckily enough for me, my family was savvy enough to perceive what was preceding the monstrous expropiation of organizations, and afterward we simply moved to Spain. I don't recollect excessively as I was youthful (perhaps like 7-8 years of age?) and honest. Nonetheless, I truly value all the exertion my family improved the situation us. Starting today I live well. I simply ponder, how great and free that nation could have been whether it wasn't taken by the wrong delivers the primary spot.
Venezuela is suffering from the worst time and the people of Venezuela are not understanding what they to recover from this situation the government is trying but let’s see what happens in future . What you think sir Venezuela can recover from this situation @adsactly
The period of time that preceded the coming to power of Hugo Chavez in 1999 is called the Fourth Republic, and it begins in 1958, after the overthrow of the dictatorship of Peres Jimenez. Venezuela in the middle of the 20th century was a poor country, whose economy was dominated by agriculture. But gradually began to gain momentum oil and gas sector, which by the end of the last century already occupied more than 90% of GDP (this is the share of the oil industry in the gross domestic product today). The relatively prosperous period in the life of the country is attributed to the 1960-70s, the standard of living of the Venezuelan population at this time in the press is referred to as "quite high", however, with the proviso – "in comparison with other Latin American countries." The money that brought the oil and gas sector to the Treasury was enough only to maintain an acceptable standard of living in the cities, the difference in income between the residents of the village and the city became so large that the peasants were forced to sell their land and migrate EN masse to the cities, forming there whole blocks of self – construction - "Barrios". Since the second half of the 1970s, the economic situation in the country began to deteriorate. The fall in oil prices and the General economic crisis in the region has led to the adoption by the government of Venezuela in late 1989 of the recommendations of the IMF as part of the transformation of the economy: cuts in social spending, the increase in communal tariffs, higher prices for gasoline and public transportation, and more. The country has its own team of "junior reformers" and "the process has gone." Following the recommendations of the IMF has caused mass protests among the population, the suppression of which led to the victims – according to various sources, killed several hundred to 3,000 people.
By the time Hugo Chavez came to power, Venezuela's economy was a typical "trumpet economy." Raw material orientation has led to the fact that the country, located in a favorable climatic zone, was forced to import most of the food.
With the fall in world oil prices, the commodity economy of Venezuela came in a very poor state, to pay the "bills" of social policy of Chavez became problematic, the press increasingly began to talk about the country's default. According to some experts, the sad results of the economic policy of President Chavez were due to the half-hearted and haphazard decisions he made. Such a "cavalry rush" and inconsistency in his actions brought in the end more harm than good.
The Venezuelan government has made it clear that there is no government policy of human rights violation and that any situation that has arisen amidst the violence occurring since February 12 has to do with individual actions that will be punished with the rigor of the law.
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I just read a article on local news paper about the disaster happening in Venezuela.. that is really a bad news..
Even millionaire are not able to buy food with millions of money.
Venezuela's economy is worse situations.
Years back a African country Zimbabwe was facing same situation but right now Venezuela is facing same disaster..
This shows that crude oil never replace the hunger of man..
haha that was funny to read, but I understand that can sound surprising. Last time I check (a few days ago) 3.5 million Bolivares (the local currency) was the same as an american dollar. So:
3,500,000 vef = 1 $ , but this changes constantly.
In a month there will be a monetary conversion, and they will eliminate 5 zeros to the currency, besides it is going to have some kind of relationship with the Petro which is the fraudulent crypto currency created by this government. Really crazy stuff, difficult to believe to people who are use to stable and normal economies.
Yeah, I think Petro currency, create a doubt about Venezuela government..
And launching of Petro currency was one of the badest decision by president of Venezuela
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So if we were to buy $100 in Venezuelan money would we when Venezuela gets back to a good financial situation be real millionaires?
No, because the lost value is lost forever. After periods with high inflation, that inflation is never reversed.
What could happen is that your 100$ end up being worth less than 10$, probably less than 1$.
I mean, you would be a millionaire, but with a currency that doesn't hold value so it is pretty much worthless.
@devekapoor you dont´t live here how can you give such opinion, the pictures are of indias called goajiros and even in the best venezuelan´s moment they were begging in the streets, and the other picture are colombians steeling our money to sell it in colombia
Todo lo que describe fue gracias a la ineficiencia, ineficacia e ineptitud de un grupo que sólo ansiaba el poder.
this is a great news for your followers
even for me
I think this is really great information for all your followers..we always learn in your valuable post..l always follow your post..
So,thanks a lot for sharing your valuable post..
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Precisely Gramsci said that the difference between the societies in the East and the societies in the West was the separation of the State and a civil society, and he said that it would always cost the tyrants more to dominate Western societies because there is this separation. However, in Venezuela it seems that it happened just like in the East, people put their faith in Chávez as if it were a messiah.
True. People need to stop seeing political leaders as some kind of saviors.
Amazing post! of this chaos.
Political parties nationalise the conpsnies for sole purpose of getting money.Democracy has lot of disadvantage too.which government ot party rule in venezuela? @adsactly
The political party that has been ruling since 1999 is called PSUV, not to confuse with PDVSA which is the oil company.
It should be noted that my family was a victim of this type of measure 7 years ago
That criminal in the DOJ called Jeff SESsions does not have respect for private property as well. He created laws to seize property from Americans. The banking cartel is stealing trillions from wealthy people across the globe and nobody is doing anything about these criminal Federal Reserve banks.
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Thanks for this information!
Really its great information for us...we are so satisfied to hear this..
Good @adsactly, I indicate the following in a very respectful way. I understand the point of view that you are indicating but the problem in our country is in many areas.
first is the lack of a strong mandate for government agencies to work without receiving any money.
second, that they do not regulate real prices in the markets, since many of us Venezuelans are to blame for this.
Very simple, if you have cash a cheese costs you 1000 Bsf (correctly a million bolivares) but for the lack of cash, you have to pass the point and the seller very unfairly sells it to you in 8000 Bsf (eight million Bolivares), that It happens because the Venezuelan has unfortunately become too conformist because of the situation.
Unfortunately, when Chavez was alive. This controlled the inflation little by little and did not make the Venezuelan not talk to him as we say vulgarly here "de coñazo", but with the mandate of a mature Nicola who is currently doing NOTHING for his country, sent all the efforts of the previous president to the shit.
@adsactly Hola!! soy Venezolana y vivo en Venezuela. Es lamentable la situación que esta acarreando en mi País. Tengo la Fe que esto pronto va cambiar y los venezolanos nos vamos a fortalecer espiritual, emocional y temporalmente. Saludos desde este hermoso país VENEZUELA!!
excellent post it is good that the world knows how we are in venezuela thank you very much from a Venezuelan who is still fighting for his country greetings @adsactly @dedicatedguy