fiatdenier on Nostr: Elect Kamala and USA will collapse and become Venezuela. Just in case you are ...

Elect Kamala and USA will collapse and become Venezuela.
Just in case you are ignorant on how “Kamunism” can destroy a country
Read on.

Price controls in Venezuela, particularly under the presidency of Hugo Chávez and later Nicolás Maduro, played a significant role in the country’s economic collapse. Here’s how these controls contributed to the destruction of Venezuela’s economy:

### 1. **Introduction of Price Controls**
- In the early 2000s, President Hugo Chávez introduced widespread price controls on essential goods, including food, medicine, and fuel, as part of his socialist agenda. The goal was to make basic necessities affordable for the poor.
- The government set prices for goods below their market value, which, in theory, would help the population access essential products.

### 2. **Impact on Supply and Production**
- **Disincentivization of Production:** The artificially low prices made it unprofitable for businesses to produce or import goods. As costs rose due to inflation, producers could not increase prices, leading many to scale back production or stop entirely.
- **Shortages:** With production plummeting, shortages of basic goods like food, medicine, and toiletries became widespread. Shelves in stores were often empty, and people had to stand in long lines for hours to buy whatever was available.
- **Black Market Growth:** As shortages increased, a black market emerged where goods were sold at much higher prices. This made it difficult for ordinary citizens to afford essential items, leading to widespread hardship.

### 3. **Currency Controls and Hyperinflation**
- In addition to price controls, the government also imposed strict currency controls, which restricted access to foreign currency. This made it difficult for businesses to import goods, further exacerbating shortages.
- As the government printed more money to finance its spending and social programs, inflation skyrocketed. The mismatch between controlled prices and the real cost of production led to severe distortions in the economy.

### 4. **Economic Collapse**
- **Industry Collapse:** Price controls destroyed many industries, including agriculture and manufacturing. Venezuela, once a food exporter, became dependent on imports for basic necessities.
- **Public Services Decline:** The collapse of industry, combined with hyperinflation, led to a dramatic decline in public services. Hospitals lacked medicines, schools closed, and utilities like electricity and water became unreliable.
- **Mass Migration:** The economic situation became so dire that millions of Venezuelans fled the country, creating one of the largest refugee crises in Latin American history.

### 5. **Ongoing Crisis**
- Under Nicolás Maduro, who continued Chávez’s policies, the situation worsened. Despite multiple attempts to reform or remove price controls, the damage had been done. The economy contracted sharply, and the country faced a severe humanitarian crisis.
- The combination of price controls, corruption, mismanagement, and dependency on oil revenue, which collapsed with falling oil prices, led to the near-total destruction of Venezuela’s economy.

### Conclusion
Venezuela’s experience with price controls demonstrates the dangers of government-imposed price caps in a poorly managed economy. While the intention was to protect consumers, the controls led to widespread shortages, economic collapse, and immense suffering for the Venezuelan people.