From the Associated Press:
"President Hugo Chavez on Thursday ordered the nationalization of Venezuela's cement industry, saying his government cannot allow businesses to continue exporting raw materials needed to help tackle a domestic housing shortage."
"Prior to Thursday's nationalization order, Chavez had already moved to nationalize Venezuela's largest telecommunications company and the electricity sector, slap new taxes on the rich and impose greater state control over the oil and natural gas industries."
Comment: Well, it looks like Chavez continues to turn the thumbscrews on his economy and his people. Nationalizing the cement industry will have short term benefits but will create shortages, inefficiencies, and it will cost the government a pretty penny. This is just another item that Chavez has added to the public debt. How long do you want to bet that cement output starts to decrease after nationalization? Look how much oil production has dropped off after that industry went public and Chavez pushed out some of the private companies.
And in other news regarding Chavez from the Times Colonist:
"Venezuela is preparing a "windfall" oil tax to boost the OPEC nation's revenues from record crude prices, only months after leftist President Hugo Chavez's nationalization crusade forced out two of the world's largest energy companies."
"The move extends Chavez's broad campaign to boost state control over oil operations that led to legal battles with Exxon Mobil and ConocoPhillips and helped spark a wave of resource nationalism throughout the Andes."
'"Because of high oil prices, oil companies have excessive earnings that go beyond reasonable levels of profitability," Legislator Angel Rodriguez told state news agency ABN."
Comment: Chavez and House Democrats (and some Republicans too) have something in common when it comes to “windfall” profit taxes. Great minds think alike, eh?
2 comments:
That is the fastest way to DESTROY an economy. People act out of self-interest. Capitalism is the only system that successfully channels that BASIC LAW OF HUMAN NATURE into a socially productive result. Well-meaning but ultimately destructive systems like populism and socialism only end up making everyone poorer than they should be.
Great blog, Vulcan! We think alike! I'll be voting NONE OF THE ABOVE come the next election. Ron Paul has shown me the truth and I'll only vote for someone who truly believes in FREEDOM.
Hey Lisa T, Chavez is slowing ruining Venezuela's economy and his people will eventually suffer greatly for it. I hope that they eventually throw the bum out and start over. It's good to know that you are a Ron Paul supporter:) Thank you for your post and kind words.
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