The Latino Show Magazine, reveals Venezuelans are suffering and the real cause behind it is not droughts or low oil prices on the market. The real reason why Venezuela is falling apart is because it is under the rule of a socialist system. There are several key elements of socialism and they can be explained quite easily in how they caused the demise of the country of Venezuela.
Socialism destroys incentive. When people know that prices will be set artificially, they are less inclined to be productive or produce certain goods in the first place. This is one of the underlying reasons why Venezuela is suffering from food shortages. Artificially low prices literally caused Venezuala’s farmers to abandon their livelihoods. Expert Norka asks why farm when they would be getting almost nothing in return for their hard labor?
So socialism has literally wiped out the farming industry in Venezuela. The socialist leaders responded by importing food and selling at an artificially lower price, essentially taking a loss on the distribution of imported food. The few farmers that still did exist in Venezuela have smuggled goods to sell to other countries like Columbia for higher profits.
Another key reason why Venezuela has been destroyed by socialism is that the government decides how much each person receives. Rather than being determined by the income of the individual and market prices the government dictates who receives what and how much they get. This not only kills incentive, but leads to shortages and inevitably corruption.