Comments on: Quote Of The Day http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/ Sat, 11 Oct 2008 19:45:53 +0000 http://wordpress.org/?v=2.3.2 By: Remember Hugo Chavez? at Hispanic Pundit http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-185285 Remember Hugo Chavez? at Hispanic Pundit Wed, 06 Aug 2008 17:11:54 +0000 http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-185285 [...] time I read something on Hugo Chavez I am reminded of Hayek’s book, The Road To Serfdom and this quote from Cato: “Since the collapse of the Soviet empire, many defenders of socialism have argued that [...] […] time I read something on Hugo Chavez I am reminded of Hayek’s book, The Road To Serfdom and this quote from Cato: “Since the collapse of the Soviet empire, many defenders of socialism have argued that […]

]]> By: Foobarista http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-136881 Foobarista Thu, 01 Feb 2007 18:26:48 +0000 http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-136881 Real functioning capitalism has never existed in Latin America at any significant level. In a properly working capitalist system, big companies die and rich families occasionally lose their shirts. But in most of Latin America, the rich families have been rich for centuries and their pet companies stack the political deck against competition, especially from "below". This is why it needs to be easy to operate a legal small business, and why an almost perfect test for the wealth of a country is how easy it is to operate if you actually followed the letter of the law. If you can't legally run a small business, it'll never get big, and evil bribe-farming bureaucrats will use your "illegalness" as an opportunity to seek bribes. (Note that this isn't to say that state cronyism doesn't happen in the US or other western countries, but that it happens to a crushing degree in Latin America.) Real functioning capitalism has never existed in Latin America at any significant level. In a properly working capitalist system, big companies die and rich families occasionally lose their shirts. But in most of Latin America, the rich families have been rich for centuries and their pet companies stack the political deck against competition, especially from “below”.

This is why it needs to be easy to operate a legal small business, and why an almost perfect test for the wealth of a country is how easy it is to operate if you actually followed the letter of the law. If you can’t legally run a small business, it’ll never get big, and evil bribe-farming bureaucrats will use your “illegalness” as an opportunity to seek bribes.

(Note that this isn’t to say that state cronyism doesn’t happen in the US or other western countries, but that it happens to a crushing degree in Latin America.)

]]> By: HispanicPundit http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-136730 HispanicPundit Thu, 01 Feb 2007 02:29:38 +0000 http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-136730 Not true - so long as what is implemented is <em>real</em> capitalism, it doesn't much matter how 'psycho' the person behind the helm is. For example, see Chile under Pinochet. The problem with Latin America is not the 'evil' people that run the countries, the problem is that Latin America has not implemented much real capitalism in the first place (due, in large part, to the evil people running the countries), instead it has implemented what economist Gary Becker dubs "Crony Capitalism", see <a rel="nofollow" href="http://hispanicpundit.com/2006/12/21/capitalism-in-latin-america/" rel="nofollow">here</a>. Collectivism, whether in the form of communism or (real) socialism, is a failure <em>no matter who is in control</em>. Granted, if there is a psycho at the helm it is much <em>worse</em>, but even properly implemented collectivism is a failure, see <a rel="nofollow" href="http://en.wikipedia.org/wiki/Collective_farming" rel="nofollow">collective farming</a>, for example. Last but certainly not least, it is only through free markets, property rights, and a free press, that one can prevent 'psychos' from taking over. So in addition to collectivism itself leading to mass murder, it also paves the way for mass murderers to lead the country. Not true - so long as what is implemented is real capitalism, it doesn’t much matter how ‘psycho’ the person behind the helm is. For example, see Chile under Pinochet.

The problem with Latin America is not the ‘evil’ people that run the countries, the problem is that Latin America has not implemented much real capitalism in the first place (due, in large part, to the evil people running the countries), instead it has implemented what economist Gary Becker dubs “Crony Capitalism”, see here.

Collectivism, whether in the form of communism or (real) socialism, is a failure no matter who is in control. Granted, if there is a psycho at the helm it is much worse, but even properly implemented collectivism is a failure, see collective farming, for example.

Last but certainly not least, it is only through free markets, property rights, and a free press, that one can prevent ‘psychos’ from taking over. So in addition to collectivism itself leading to mass murder, it also paves the way for mass murderers to lead the country.

]]> By: True_Liberal http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-136719 True_Liberal Thu, 01 Feb 2007 01:30:20 +0000 http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-136719 I suspect that the culprit is more likely to be "capitalistic" monopolies countenanced by corrupt government. Were a free market functioning there, you would have competition minimizing the effects of corruption. Of course the socialists like to call such freedom the "black market", but its leveling effects give the lie to such pejorative terms. I suspect that the culprit is more likely to be “capitalistic” monopolies countenanced by corrupt government. Were a free market functioning there, you would have competition minimizing the effects of corruption.

Of course the socialists like to call such freedom the “black market”, but its leveling effects give the lie to such pejorative terms.

]]> By: msondo http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-136703 msondo Thu, 01 Feb 2007 00:01:19 +0000 http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-136703 Just in case my subtle joke was lost, I am not saying capitalism was the culprit for the hard times in Latin America... rather, it was the fact that corrupt and evil people have been behind it. Capitalism or socialism is irrelevant when you have a psycho behind the helm. Just in case my subtle joke was lost, I am not saying capitalism was the culprit for the hard times in Latin America… rather, it was the fact that corrupt and evil people have been behind it. Capitalism or socialism is irrelevant when you have a psycho behind the helm.

]]> By: msondo http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-136702 msondo Wed, 31 Jan 2007 23:59:24 +0000 http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-136702 This is very true, but look at the last 500 years to see the damage capitalism has done to Venezuela and Latin America as a whole. ;) This is very true, but look at the last 500 years to see the damage capitalism has done to Venezuela and Latin America as a whole. ;)

]]> By: HispanicPundit http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-136544 HispanicPundit Wed, 31 Jan 2007 03:55:27 +0000 http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-136544 Venezuela is only doing better than people predicted because of the high price of oil (Venezuela, being a large exporter of oil), see <a href="http://hispanicpundit.com/2007/01/10/time-to-pray-for-the-citizens-of-venezuela/" rel="nofollow">here</a>, back when Chavez started nobody thought the price of oil would rise as high as it has. But <em>when</em> that price of oil drops, it will be easier to see the real damage Chavez <em>and</em> his political and economic theory has caused. Venezuela is only doing better than people predicted because of the high price of oil (Venezuela, being a large exporter of oil), see here, back when Chavez started nobody thought the price of oil would rise as high as it has.

But when that price of oil drops, it will be easier to see the real damage Chavez and his political and economic theory has caused.

]]> By: msondo http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-136530 msondo Wed, 31 Jan 2007 02:27:04 +0000 http://hispanicpundit.com/2007/01/30/quote-of-the-day-452/#comment-136530 He is indeed starting to ruin whatever good image he made for himself but just because he is bad doesn't mean his policy is necessarily bad. Venezuela seems to be doing quite better than anybody had predicted. If Chavez turns into a crazed dictator I think he only has himself to blame and not a political or economic theory. He is indeed starting to ruin whatever good image he made for himself but just because he is bad doesn’t mean his policy is necessarily bad. Venezuela seems to be doing quite better than anybody had predicted. If Chavez turns into a crazed dictator I think he only has himself to blame and not a political or economic theory.

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