Even The New York Times Now Admits That It's US Sanctions, Not Socialism, That's Destroying Venezuel
JUNE 8, 2021
Even The New York Times Now Admits That It’s US Sanctions, Not Socialism, That’s Destroying Venezuela
BY PETER BOLTON
The facile right-wing talking point that the economic crisis facing Venezuela “proves” that “socialism always ends in failure” has become so hackneyed by overuse that it has attained its own tongue-in-cheek name. The ad Venezuelum, as it has come to be known, has slowly developed into such a tedious and predictable right-wing tactic that it seems to now serve as an all-purpose retort to try to discredit even the most modest of left-of-center proposals. In October 2018, for instance, then-President Trump responded to a plan by progressive Democrats in congress to introduce a bill to establish a system of universal public healthcare – something which every industrialized country other than the US already has – by stating: “It’s going to be a disaster for our country. It will turn our country into a Venezuela.”
Analysts on the left have long toiled against the ad Venezuelum by pointing out the myriad genuine explanations behind the economic crisis that has been roiling the country since around 2014. Caleb Maupin, for instance, has argued that falling oil prices were a key factor in the collapse of Venezuela’s economy. This is hardly a controversial point given that Venezuela’s dependence on oil, which was first discovered in the 1920s, has led to a highly unstable economy featuring regular bouts of economic chaos caused by a sudden drop in the price of crude. In the early 1980s, during the government of Luis Herrera (of the right-wing COPEI party), for example, there was a huge economic crisis with many of the same features as the one confronting the country today. Needless to say, no one at the time tried to pass this off as proof that capitalism doesn’t work.
Ryan Mallet-Outtrim, who himself lived in Venezuela for several years, has argued that the government’s monetary policy has been one of the main factors behind the crisis. In particular, he pointed out that the fixed exchange rate, which of course is hardly socialistic in nature, had an unintended effect on demand for currency that in turn led to an inflationary spiral. He is not alone is his criticism of the fixed exchange rate; economist Mark Weisbrot of the Center for Economic and Policy Research (CEPR), who like Mallet-Outtrim is broadly sympathetic to the Chavista government, has argued for years that Venezuela should drop it in favor of a floating exchange rate.
I myself argued in a 2016 essay for the Council on Hemispheric Affairs that an economic war waged by a domestic societal elite, and abetted by the United States, has been a major cause of the crisis. Though dismissed by critics of Chavismo as a conspiracy theory, there is, in fact, ample evidence of an economic war against the Venezuelan government ever since Hugo Chavez was first elected in 1998. The so-called oil strike, for instance, (in reality a management-led lockout) was a transparent attempt to bring about regime change by crippling the economy. Cases of hoarding goods and deliberately disrupting supply chains on the part of the opposition-friendly private business sector, meanwhile, have been well-documented.
More:
https://www.counterpunch.org/2021/06/08/even-the-new-york-times-now-admits-that-its-us-sanctions-not-socialism-thats-destroying-venezuela/
