Tag: Maduro

Authoritarian Governments Use Old Smears to Tear Down Their Opponents

Anne Applebaum reports on how old smears are still used to support illiberal ideas and authoritarian government:

Halfway through an otherwise coherent conversation with a Georgian lawyer here — the topics included judges, the court system, the police — I was startled by a comment he made about his country’s former government, led by then-president Mikheil Saakashvili. “They were LGBT,” he said, conspiratorially.

What did that mean, I asked, surprised. Were they for lesbian, gay, bisexual and transgender rights? For gay marriage? Were they actually gay? He couldn’t really define it, though the conversation meandered in that direction for a few more minutes, also touching on the subject of the former president’s alleged marital infidelity, his promotion of female politicians, his lack of respect for the church.

Afterward, I worked it out. The lawyer meant to say that Saakashvili — who drove his country hard in the direction of Europe, pulled Georgia as close to NATO as possible and used rough tactics to fight the ­post-Soviet mafia that dominated his country — was “too Western.” Not conservative enough. Not traditional enough. Too much of a modernizer, a reformer, a European. In the past, such a critic might have called Saakashvili a “rootless cosmopolitan.” But today the insulting code word for that sort of person in the former Soviet space — regardless of what he or she thinks about homosexuals — is LGBT.

None of this is new, as Applebaum notes. We’ve seen it recently in Venezuela. In 2012, as soon as Henrique Capriles won a primary to become the candidate of the democratic opposition against Venezuelan strongman Hugo Chavez, the Wall Street Journal reported that he

was vilified in a campaign in Venezuela’s state-run media, which insinuated he was, among other things, a homosexual and a Zionist agent.

Homosexual and Jewish, I thought. When they attack him for being rich, they’ll have the trifecta of populist prejudices.

And sure enough, they did. Chavez himself declared:

The bourgeoisie have their candidate – the candidate of the anti-fatherland, of capitalism, of the Yankees. We are going to thrash that bourgeoisie.

Chavez, of course, also threw in “the candidate of the Yankees,” that is, the Americans. German democrats used to say that “anti-semitism is the socialism of fools.” Now in many countries we could say that anti-Americanism is the new anti-semitism. They’re often found in tandem.

The authoritarian government of Malaysia calls its chief opponent, Anwar Ibrahim, a homosexual and a gay propagandist, and has even prosecuted and jailed him on trumped-up sodomy charges.

All of these epithets – homosexual, Jewish, bourgeoisie, and more recently, “American” – have been staples of illiberal rhetoric for centuries. Liberals – advocates of democracy, free speech, religious freedom, and market freedoms – have been tarred as “cosmopolitan” and somehow alien to the people, the Volk, the faithful, the fatherland, the heartland.

Authoritarians such as Putin and Chavez’s successor Nicolas Maduro also like to denounce their opponents as “fascists,” even though they themselves fit most of the textbook definition of fascism – nationalism, anti-liberalism, a charismatic leader as the embodiment of the nation, and an economy controlled indirectly by the state, typically through nominally private owners

Liberals should denounce these sorts of vile and illiberal attacks, whether they stem from the American far right or far left, Vladimir Putin, the ruling party in Malaysia, or the Venezuelan socialists. 

Socialism in Venezuela, like Socialism Everywhere, Means Shortages

After 15 years, Hugo Chavez’s socialist revolution is finally reaching socialism’s signature achievement: shortages of toilet paper. The Washington Post reports:

CARACAS, Venezuela — On aisle seven, among the diapers and fabric softener, the socialist dreams of the late Venezuelan president Hugo Chávez looked as ragged as the toilet paper display.

Employees at the Excelsior Gama supermarket had set out a load of extra-soft six-roll packs so large that it nearly blocked the aisle. To stock the shelves with it would have been pointless. Soon word spread that the long-awaited rolls had arrived, and despite a government-imposed limit of one package per person, the checkout lines stretched all the way to the decimated dairy case in the back of the store.

“This is so depressing,” said Maria Plaza, 30, a lawyer, an hour and a half into her wait….

Why is it always toilet paper? I understand why a poorly coordinated economy isn’t likely to produce complicated goods like cars (see the Soviet Lada, the East German Trabant, or the gleaming 1950s American cars still in use on the streets of Havana) or computers. But how hard is it to produce toilet paper? Not that toilet paper is the only thing in short supply:

Each day the arrival of a new item at Excelsior Gama brought Venezuelans flooding into the store: for flour, beef, sugar. Store employees and security guards helped themselves to the goods first, clogging the checkout lines, and then had to barricade the doors to hold back the surge at the entrance.

Meanwhile, as long as you can blame the Americans, the capitalists, Snowball, or Emmanuel Goldstein, you can retain the support of at least some of the people:

“The store owners are doing this on purpose, to increase sales,” said Marjorie Urdaneta, a government supporter who said she believes Maduro when he accuses businesses of colluding with foreign powers to wage “economic war” against him.

“He should tell the stores: Make these items available — or else,” she said.

The regime takes credit for what it can, making sure that

products sold by recently nationalized companies carried little heart symbols and the phrase “Made in Socialism.”

The queues in front of the stores should carry the same symbol.

Price Controls: A Troubling Trend in Latin America

Argentina, Venezuela, and now even Ecuador have all embraced an unfortunate, if familiar, economic craze currently sweeping the region – price controls. In a wrong-headed attempt to “suppress” inflation, the respective governments have attempted to fix prices at artificially low levels. As any economist worth his salt knows, this will ultimately lead to scarcity.

Consider Venezuela, where the government sets the price of a number of goods, including premium gasoline, which is fixed at only 5.8 U.S. cents per gallon. As the accompanying chart shows, 20.4% of goods are simply not available in stores.

While price controls ostensibly keep the prices of goods on official markets low, they ultimately lead to empty shelves, depriving many consumers access to essential goods (such as toilet paper). This, in turn, leads to “repressed” inflation – given the price controls that exist, the “true” rate of inflation is held down, or repressed through Soviet-style government intervention. As the accompanying chart shows, the implied annual inflation rate for Venezuela (using changes in the black-market VEF/USD exchange rate) puts the “repressed” inflation rate at 153%.

Likewise, Argentina is facing a similar dilemma (see the accompanying chart).

In addition to scarcity and repressed inflation, price controls can lead to unintended political consequences down the road. Once price controls are implemented it is very difficult to remove them without generating popular unrest – just consider the 1989 riots in Venezuela when President Carlos Perez attempted to remove price controls. 

Hopefully, Ecuador – which, thanks to its dollarization, is experiencing an annual inflation rate of only 3% – will see this folly and abandon its expirement with price controls.

If countries like Venezuela are really interested in keeping inflation under control, they should follow Ecuador’s lead – simply junk their domestic currencies and “dollarize”.