Venezuela’s Future — and Ours

Guest Post by The Zman

There are a lot of ways to describe the new political divide that has emerged over the last decade. We have nationalists versus internationalists, globalists versus populists and identitarians versus the multiculturalists. All of those are true, but another way of thinking about it is that the debate is now moving upstream. For a long time, public debate was focused on economics or maybe politics. Those are downstream from institutions, culture and biology. Now, the debate has moved upstream, to the the stuff that really matters.

Not everyone has figured out that the debate has changed. The Bernie Bros, for example, are like the Japanese soldiers, who were cut off in the war and lived in the jungle for years, still fighting the war. The Bernie Bros still think the Democrats are the party of the working man, as if anyone in Washington cares about the working man. The legacy conservatives are similarly trapped in a bygone era. You see that in this post, by our old friend Sloppy Williamson, on the ravages of socialism on Venezuela.

he United States has resigned in protest from the UN Human Rights Council, which has a long and ignominious record of protecting the world’s worst abusers of human rights. The proximate cause of the U.S. resignation was the council’s unwillingness to act on the matter of Venezuela, where the socialist government of Nicolas Maduro is engaged in political massacres and the use of Soviet-style hunger-terror against its political enemies. Venezuela remains, incredibly enough, not only protected by the Human Rights Council but an active member of it, an honor shared Vladimir Putin’s Russia and its political assassins, the People’s Republic of China and its organ harvesters, and the Castro dictatorship in Cuba with its torturers and al paredón justice.

Venezuela and North Korea could not be more dissimilar in terms of their respective cultures, peoples, and histories. And yet they have arrived in approximately the same place: at the terminus of F. A. Hayek’s “Road to Serfdom.”

For generations, it has been an article of faith, among conservatives, that everything depends upon economics. It’s not just that if you get the economics right, then the miracle of the marketplace will usher in the the age of bliss. It’s that their preferred economic models are intrinsically moral. That means the wrong economics must always result in terrible outcomes. Bad tax policy not only makes people poor, it makes them corrupt, violent and cheat on their wives. Like Marxists, they think the system makes the man.

Well, what about Venezuela? What’s really going on? Here’s the per capita GDP.

http://thezman.com/wordpress/wp-content/uploads/2018/06/GDP.png

That’s in constant dollars and it shows a remarkable thing. After the turmoil that brought Hugo Chavez to power, the Venezuelan economy started a nice run. Per capita GDP is a benchmark number that economists love to use to measure the health of a country. Here’s what wages look like in the country:


source: tradingeconomics.com

Now, wages and economic growth don’t tell the whole story. Venezuela suffers from the curse of natural resources, which in her case is oil. What dumb people call socialism is really just the way things have always operated in countries with low levels of human capital. The elites monopolize the natural resources and the profits that come from selling them on the international market. They spread enough money around to prevent a revolt, but otherwise it a system not all that different from what existed in colonial times.

In other words, what ails Venezuela is not ideology. It is biology. It is the way it is because of its people. What determines the nature and character of a country is not the tax code or the regulatory regime. The nature of a country comes from the people. Venezuela lacks the human capital to operate a modern economy. It has and always will suffer from the smart fraction problem. That is, it lacks a large enough smart population to carry the rest of the population into a modern economy. It remains stuck in a model suited for its people.

Put another way, it is people, not pots. Replace the Venezuelan population with Finns and they will figure out how to make a mild form of Nordic socialism work just fine. Fill the place up with Japaneses and the country will look like an Asian tiger. At the same time, begin to fill up the United States with Latin Americans and it is going to start to look like Latin America. That’s why your newly imported replacements are running on platforms familiar to anyone getting ready to vote in the upcoming Mexican elections.

Of course, the reason that raging cucks like Sloppy Williamson avoid the obvious is that it is much safer to focus on trivialities. Lefty mobs are not going to swarm his Rascal scooter if he avoids taboo subjects. That and these guys have been playing the role of useful idiot for so long, they are unable to notice that the world has changed. They operate like a cargo cult, convinced they can pretend it remains the 1980’s and it will magically be so. National Review is like a weird living museum to the Reagan era.

The world has changed, though, and the debate has shifted upstream. People are noticing that when you elect a new people, you don’t actually end up with a new people. You end up with a culture that reflects the biology of the people you imported. Whites in America are now coming to terms with the choices in front of them. Keep their head down and play make believe while they are replaced, or risk moral condemnation for defending their heritage and their culture. It’s a future with you or without you. That’s the debate.

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14 Comments
Iska Waran
Iska Waran
June 27, 2018 10:43 am

Sloppy Williamson on his Rascal scooter. Funny.

Bob P
Bob P
June 27, 2018 10:51 am

All I needed to see to dismiss this entire article was the GDP graph purporting to show Venezuela is doing just fine despite socialism. It ends in 2013. Since then the country has completely fallen apart–so much so that thousands are starving to death–due to myriad factors such as too many useless people to be sure, but mainly because the incompetent socialists in charge have ruined the entire economy.

Iska Waran
Iska Waran
June 27, 2018 10:54 am

Zman only makes passing reference to Venezuela’s dependency on oil. Oil prices went from about $30 in 2000 to $140 by 2008. That brought about most of Venezuela’s increase in per capita GDP under Chavez.

Iska Waran
Iska Waran
June 27, 2018 11:10 am

The Kevin D. Williamson article

Venezuela’s Future — and Ours

linked by Zman is pretty good.

The fact that natural human capital has an impact doesn’t mean that everything is down to average IQ. I’m sure that average IQ was plenty high in Soviet Russia and Mao’s China.

noBabel
noBabel
June 27, 2018 11:46 am

Venezuela’s social and political choices aren’t causes they are symptoms of depleting resources. The elites control the wealth and there isn’t enough left for the rest. Freedom, individual choice, socialism, communism etc are only possible when abundance is already present. When resources get scarce, we go back to tribalism. The strong tribes then attack the weaker until the population falls to the carrying capacity of the local environment. This is playing out globally, including the USA. That’s why we see the rise of populism, nationalism, and racism all over the place. We are a tribal species. It won’t stop until plague, famine, and war whittle us down to about a billion globally, organized along whatever tribal characteristics win out. Winter is definitely coming and thousands of years of history are repeating.

James M Dakin
James M Dakin
  noBabel
June 27, 2018 12:48 pm

Thank goodness, a voice of sanity. It is all about resources ( and biology ). And for those Fracking Fags out there, remember that Venezuela is also full of Fake Fuel, for all the good it did them. The global economy contracts, the crap fuel is either pumped for a loss or not purchased as there are higher BTU fuels to pick from. I must disagree with your one billion survivors. That is far too optimistic. Think fractions of one percent.

noBabel
noBabel
  James M Dakin
June 27, 2018 2:04 pm

Fracking at a loss. The only thing keeping up with global oil demand is expensive tight oil that has been operating at a loss, in aggregate, every year. They lose when oil is at $140 per barrel or $40 per barrel and everything in between, including today’s $72 for WTI. If oil maintains $70 or higher for much longer, there goes the economy. We all know that the numbers are being fudged and we all shake our fists at the shenanigans of finance. Well, when that financial house of cards finally collapses, so goes tight oil, then global oil supplies are in decline.

We grew to 7.5 billion people on cheap oil. The cheap stuff is gone. The rest of the proven reserves around are too expensive for this shaky global economy to extract. Yes, Venezuela has oil, but the rest is difficult (expensive) to get and they can’t make enough money taking out of the ground at today’s prices. It isn’t because of socialism. Actually, the only way to get oil out under these emerging circumstances is to use some form of slavery. In the USA, the slavery is in the form of QE inflating $ out of our pockets so “investors” can keep the oil flowing.

Oil will be around for awhile, but it won’t be for everyone. Only for the elites. Civil unrest and tribal warfare to follow.

steve
steve
  noBabel
June 27, 2018 6:00 pm

noBabel,
You seem to be one of the few that understand the EROI in the oil patch. All of the progress and the standard of living we have enjoyed has been on the back of cheap oil. Oil that is quickly disappearing.

Rdawg
Rdawg
  steve
June 27, 2018 10:59 pm

Hmm. I wonder where all the “Peak Oil is Bullshit” and “Abiotic Oil Refills Old Wells” freaks have gone?

noBabel
noBabel
  Rdawg
June 28, 2018 1:36 am

As a consolation, I was a “Peak Oil is Bullshit” and “Abiotic Oil Refills Old Wells” guy until I decided to do some actual research. You know, to prove some folks wrong and stuff. Yeah, I didn’t like what the numbers told me.

Southern Sage
Southern Sage
June 27, 2018 11:52 am

Great article, Z-man. I spent two years in Venezuela. It is the only Latin American country I never want to set foot in again. I damn near got shot in the Caracazo riots of 1989. I knew the place was going to hell in a hand basket even back then. You are spot on. It is the people that make a place. Venezuela had a small, mostly white elite that monopolized the oil wealth. On the plus side, they were reasonably competent and with help from plenty of foreigners (U.S., Spanish, Portuguese, Italians, etc.) they created one of the most modern countries in Latin America. The millstone around Venezuela´s neck is the very large underclass, a largely Negro/mulatto/Indian mix that is low IQ, angry, resentful, stupid, lazy, and prone to criminality. Caracas has long been one of the most dangerous places in Latin America , much like Rio, and for exactly the same reasons. Venezuela is kaput. The upper and middle classes have largely left and they will not go back. What is left is human dross. The Chavez and Maduro regimes have armed the lumpen criminal classes so now nobody is safe. The light crude reserves are almost gone and the huge reserves that remain are heavy or very heavy crude, difficult to get out of the ground and expensive to refine. The place is a mess. Don´t go there!

Anonymous
Anonymous
June 27, 2018 5:09 pm

When Obrador (aka AMLO) wins in Mexico we are going to be stuck with a giant version of Venezuela on steroids on our southern border with its leader calling for flooding the US with migrants.

james the deplorable wanderer
james the deplorable wanderer
June 27, 2018 6:15 pm

In that case, Trump might get his wall after all, after a few incidents of immigrant rage ….
Venezuela could be a marvel, but they would have to change direction in numerous ways. Sort of like the current US, the elites are selling out the populace, who have little (legal) recourse. Wonder what will happen when you make peaceful revolution impossible?
Better learn how to make biodiesel if you need to travel once the Crunch hits.
We cannot afford to bail out the world anymore, if we ever could; and the current “dumbing-down” rampant everywhere cannot continue. Socialism hasn’t worked anywhere for long, and this needs to be taught like gravity – until you can provide a counterexample, then socialism is a failure.
All who are wise need to have alternate plans in place, for when your job / company / place of employment disappears / dissolves / perishes in the riots. Figure out how little you need to live on, how much it will take to get / make / earn it, and how that will happen. Better to at least have a plan, even if it craters at first, than try to figure all this out on the fly, while hungry / hurt / being chased.
Plan. NOW.

Not Sure
Not Sure
June 28, 2018 7:07 am

Conversely, if you remove the lower functioning members of the peoples, it would appear that you may be able to improve the country by the loss of the ones who drain the country of its potential.
Hence, the soon to be Mexican El presidente’s declaration of encouragement of Mexicans who want to leave Mexico and migrate to the USA should be free to do so.