Chile vs Venezuela, Capitalism vs Socialism

Nothing shows the difference that a local governing style has on an area such as South America like the current difference between Venezuela and Chile. It is almost becoming as obvious as the difference between North Korea and South Korea.

After attempting a coup, Hugo Chavez was democratically elected president of Venezuela in 1998. In Chile, The Communist Revolution came shortly after the 1964 elections. The rise of communism ended the reputation of Chile as South America's most stable state and one of the oldest democracies in the Americas alongside the United States, which had been a point of pride for the Chilean middle class. Despite frustrations with the wealthy and the institutional elite during the early 1960s, by the middle of the 1970s the powerful Chilean middle class had grown even more sour on the Communist Party and the country's poor economy, which had been strong prior to 1958.

Following a devastating famine in 1979, mass riots plagued Chile in the early 1980s and right-wing guerilla movements as well as mainstream opposition began to emerge. By the end of the Pinochet era in 1990, Chileans had had enough of communism and fascism and gravitated back to a more capitalist, free market system.

The results were clear to see.

Meanwhile, in Venezuela, things were going in the opposite direction.

Hugo Chavez, a self-labeled “man of the people” mired the country in authoritarian socialism verging on outright communism.

For a time, according to some of his proponents it was “working”. What wasn’t noted was that Venezuela had massive oil reserves upon which to make it appear as though it was “working” for a time. That time is now ending. For months now stores across the country have been host to long lines just to enter stores that are devoid of many basic products from butter to toilet paper.

Due to the problems caused by the inflation and destruction of the country brought on by Chavez the state of Zulia in western Venezuela said it will now launch a pilot program next week that uses a digital system to block shoppers from buying the same staple products at different stores on the same day. In other words, food rationing.

“We cannot allow the government to use our state to create a Cuba-style rationing system,” said opposition legislator Elias Matta of Zulia. “This shows the failure of 21st century socialism.”

The following graphic really says it all about Chile and Venezuela.

Venezuela will get worse and worse until it abandons its socialist and authoritarian policies and Chile will continue to thrive unless it abandons its current path.

And so, for those looking to live in a freer more prosperous place, your options today are, Go South (or East), young man.

For those looking to defect from the West, TDV Groups, which is free to all subscribers now has dozens of groups worldwide including groups in Chile, Peru, Uruguay, Ecuador, Colombia and Bolivia in the South and Cambodia, Philippines, Taiwan and Thailand in the East.

We will also soon be releasing our “Freedom Lover’s Guide to Expatriation and the Permanent Tourist Lifestyle” report which will be a living document and continually added to with contacts and info and advice from TDV Group concierges around the world. That also, of course, will be free to TDV subscribers.

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Anarcho-Capitalist. Libertarian. Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks. Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast. Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2013 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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