Down The Road to Dicatatorship (Updated)
MichaelW on Jan 31 2007 | Filed under: Economics, Foreign affairs, History, Hugo Chavez, Libertarianism, MichaelW's Page
Hugo Chavez travels a bit further down the road to his ultimate destination – Supreme Dictator of Venezuela – with the help of his wholly-owned subsidiary,the “National Assembly”:
Venezuela’s Congress on Wednesday granted President Hugo Chavez powers to rule by decree for 18 months as he tries to force through nationalizations key to his self-styled leftist revolution.
The vote allows anti-U.S. leader Chavez, who has been in power since 1999, to deepen state control of the economy.
The lawmakers, all loyal to Chavez after opposition parties boycotted the 2005 congressional elections, flaunted their populist credentials by taking the unusual step of holding their vote in public in a square in Caracas.
“We in the National Assembly will not waver in granting President Chavez an enabling law so he can quickly and urgently set up the framework for resolving the grave problems we have,” said congressional Vice-President Roberto Hernandez.
An “enabling law”? Hmmm, where have I heard of such a thing before? Oh yeah:
The Enabling Act (Ermächtigungsgesetz in German) was passed by Germany’s parliament (the Reichstag) on March 23, 1933. It was the second major step after the Reichstag Fire Decree through which the Nazis obtained dictatorial powers using largely legal means. The Act enabled Chancellor Adolf Hitler and his cabinet to enact laws without the participation of the Reichstag.
What a grand idea! Give Chavez even more power, so that he remain in charge indefinitely, change the laws at will, and solve all of those nasty problems that plague Venezuela. It’s sure to work.
The economic reforms are set to work in tandem with increased political centralization. Chavez is forging a single party to lead his radical reforms, stripping the central bank of autonomy and seeking indefinite re-election.
Yeah, a single party should do the trick. No messy dissents that way. I mean just look at the trouble Chavez has had getting anything done since he came to power:
Since Chavez took office in 1999, his government has seized company assets, farmlands and private buildings for cooperative ventures and imposed state control through joint ventures in the oil sector, raising the taxes and royalties foreign partners pay. His wealth redistribution efforts have made him widely popular among Venezuela’s poor and working classes.
But critics say Chavez, who now effectively controls all branches of government in Venezuela, is worsening persistent economic problems by ill-considered fiscal and monetary policies, and by creating too much uncertainty about the future.
With government spending at near-record highs, the economy isn’t generating enough goods and services to soak up the excess liquidity. Currency controls trap this cash in the economy, fueling inflation that officially is still below the 30 percent level in 1998 when Chavez was first elected, but above maximum interest rates regulated by the central bank.
But don’t forget, Venezuela is the fastest growing economy in South America! Chavez must be doing something right.
High oil prices made Venezuela’s economy the fastest-growing in South America last year, but near-record public spending by a government awash in petrodollars also led to the region’s highest inflation rate. And with so much uncertainty about where the country is heading, there are few solid investment options.
The irony in the Chavez march to totalitarianism is that it is fueled almost entirely upon the propaganda of class warfare. Chavez routinely tosses populist bits of rhetoric to the poor masses to bolster his image as one who is looking out for the working people:
“Oh, you have a yacht? Perfect, give it to me, buddy,” Chavez said. “You go around Caracas in a tremendous car. You have a house where you live and another one by sea… You have some marvelous art collections — come here, buddy.”
But what happens when there are no more “rich” people around for Chavez to bully. The state controls on the economy are quickly depleting any means of creating and/or protecting wealth, so who is going to do all that oppressing that needs to be done in order for Chavez to maintain his image? I expect that Chavez will rely on the old Castro stand-by in that case:
The Cuban government of Fidel Castro has condemned the United States for the high level of poverty in Latin America, stating that the “neo-liberal” economic policies supported by the U.S. “generate discontent” which demand change, according to official Cuban sources.
It should go without saying here that the road to dictatorship, down which Venezuela now hastily careens, is the same as The Road to Serfdom.
MORE: Doug Mataconis at The Liberty Papers highlights one of the effects of Hugo’s power grab — mass exodus:
As Hugo Chavez continues his apparent quest to become the heir apparent to Fidel Castro, Venezuelans who desire freedom and prosperity are starting to vote with their feet:
CARACAS, Venezuela — The line forms every day after dawn at the Spanish Consulate, hundreds of people seeking papers permitting them to abandon Venezuela for new lives in Spain. They say they are filled with despair at President Hugo Chávez’s growing power, and they appear not to be alone. At other consulates in this capital, long lines form daily.
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