It’s 2017, and despite what you’ve heard, things have never been better in the United States. It is so good, in fact, that even the poorest among us are in the top 1% of the entire world. According to the Global Rich List, a website that brings awareness to worldwide income disparities, an income of $32,400 per year will allow you to be part of the world’s top 1%.
With all of this talk of socialism and communism by late teens – early 20s college students, you would think that capitalism is a dud. The talk around college campuses almost suggests that capitalism is dying because of how terribly people are suffering under it. Let’s go ahead and compare the United States, a country that has espoused capitalism since it’s incarnation, to a socialist country. Let’s go one step further, in fact, and use a country that is now socialist that was once capitalist.
Venezuela, once a burgeoning free market economy, enjoying modern successes, became a country where eating your dog is now considered a good option. They adopted socialism under the watchful eye of Hugo Chavez beginning in 2000, and continued with Nicolas Maduro in 2013. For a few years, things were fine. In fact, literacy rates improved and income disparities became less pronounced. As time went on, however, Venezuela’s economy deteriorated, largely due to the lack of a free market and a lack of competition. Despite receiving over $1 trillion in oil revenues since 1999, the government had run out of cash and soon relied heavily on printing money to finance itself. The result? The highest inflation rate in the world. Into thousand 13, the inflation rate was 56%, though numbers suggest that the implied annual inflation rate was actually 330%.
You might say to yourself, America prints money, why don’t we experience the inflation rate that they experienced in Venezuela?
The US Federal Reserve, the central bank of the United States, has the responsibility of maintaining the money supply at the level that the US Federal Reserve considers best for the economy. Maintaining that level requires the US Federal Reserve to create or destroy several billion dollars every single day to ensure the balance.
Socialist countries don’t do this. There is never enough money to go around due to all of the welfare programs that are required to ensure that everyone has what the government deems them to deserve. In order to have the money to pay for all of these programs, the socialist country will simply print more. That sounds all well and good, right?
Sorry grasshopper, it’s not. While there is more money, the bigger pile still only has the value that the smaller pile had, meaning that each individual dollar is now worth less than it once was. These are simplistic terms, but that’s the point.
Now, imagine you have worked all of your life and saved up $1 million. Suddenly, your socialist country decides to print enough money that your $1 million is suddenly only worth $1000. It could turn even the most honest man into a criminal. Imagine then, what the criminals must be doing about all of this.
Venezuela experienced a horrific rise in crime. The country became one of the most dangerous places in the world with almost 25,000 homicides in 2013. A murder rate of 79 killings per 100,000 inhabitants. Videos online showed thieves simply shooting people and taking their backpacks or purses, rather than demanding them.
When things became this bad, the government cast aside any pretense that they had of being a democratic country. Maduro, once content with ruling by word of law, became dictatorial, making sure that all TV stations either belonged to the government or said and did what the government wanted. International networks were blocked from cable and satellite. Opposition radio stations would see their licenses revoked and the newspapers shut down from lack of currency with which to operate.
In the United States, The election in 2016 was a close call. Bernie Sanders, a known socialist, had gained more votes than Hillary Clinton in the primary. Luckily, the DNC did not allow that to deny Hillary the primary win. Sanders, known for stealing from neighbors and having a criminalwife, would have, with the support of millions of inexperienced and naïve college students, steered this great country toward the black hole that is socialism. Many celebrities encouraged voting for Bernie, citing the success Venezuela has had with socialism.
If socialism ever found its grip on the United States, you could rest assured that you would never again be part of the top 1% of the planet.
Despite what suffering you may feel you have, despite what roadblocks might appear in your life, be happy that they are all surmountable. There are still countries in which your birth place might determine your chances of success. Take heed of history and pay attention to the fact that this Country has remained number one for hundreds of years, while giving all of its citizens, even the poorest, better living conditions than anywhere else on the planet.