Category: Socialism

Under Communism, Guests Accepted “Terrible” Service “Because the State Was Paying”

(p. A4) The service, even the management admits, is terrible. “We would not even qualify for two stars,” said Yuri Kurtaba, the sanitarium’s director of maintenance. There is no room service and no Wi-Fi outside a tiny area near the lobby, and the swimming pool has been empty since the war.
. . .
(p. A10) Ms. Gaivoronskaya ‘s sanitarium is no longer closed to the public, as it was in the old days, but otherwise everything is left pretty much as it was. It offers a pebbly beach on the Black Sea, a statue of Lenin in the lobby, high-ceilinged rooms with chandeliers, bad plumbing and rotary telephones, as well as glorious sunshine well into late fall.
. . .
Sergey Rogulov, a 39-year-old driver from St. Petersburg, said he liked the shabby Stalin-era interiors — “it is like time travel back to the U.S.S.R.” — . . .
. . .
Ms. Gaivoronskaya , the veteran sanitarium worker, said she missed the old days, when guests tended not to complain much because the state was paying.

For the full story, see:
ANDREW HIGGINS. “GAGRA JOURNAL: Bad Pipes, Stunning Views and a Tourism Renaissance.” The New York Times (Thurs., OCT. 13, 2016): A4 & A10.
(Note: ellipses added.)
(Note: the online version of the story has the date OCT. 12, 2016, and has the title “Bad Pipes, Worse Service: A Soviet Riviera Jewel Is Reborn and Booking Up.”)

Let Individual Indians Own Land on Reservations

Mortgaging homes is a common way for entrepreneurs to provide initial funds for their startups. So our keeping individual Indians from owning land on reservations, cuts off their access to funds for entrepreneurship.
The commentary quoted below is related to a book edited by Anderson and contributed to by Regan.

(p. A13) . . . , Native Americans showed a remarkable ability to adapt to new goods and technology. Italian trade beads became an integral part of American Indian decoration and art. The Spanish horse transformed Plains Indian hunting and warfare.

Over centuries, however, these adaptations and innovations have been replaced by subjugation by the U.S. government. In 1831, Chief Justice John Marshall declared the Cherokees to be a “domestic dependent nation” and characterized the relationship of tribes to the U.S. as resembling “that of a ward to his guardian.” Marshall’s words were entrenched when Congress became trustee of all Indian lands and resources under the Dawes Act of 1887.
In recent decades, the government has paid lip service to “tribal sovereignty,” but in practice Native Americans have little autonomy. Tribes and individual Indians still cannot own their land on reservations. This means Native Americans cannot mortgage their assets for loans like other Americans, thus allowing them little or no access to credit. This makes it incredibly difficult to start a business in Indian Country. Even when tribes try to engage in economic activity, the feds impose mountains of regulations, all in the name of looking after Indian affairs.

For the full commentary, see:
TERRY L. ANDERSON and SHAWN REGAN. “It’s Time for the Feds to Get Out of Indian Country; A permit to develop energy resources requires 49 steps on tribal lands and just four steps off reservations.” The Wall Street Journal (Sat., Oct. 8, 2016): A13.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date Oct. 7, 2016.)

The book mentioned at the top of this entry, is:
Anderson, Terry L., ed. Unlocking the Wealth of Indian Nations. Lanham, Maryland: Lexington Books, 2016.

Maduro Counts on Marxist Professor to Be Miraculous “Jesus Christ of Economics”

(p. B1) CARACAS, Venezuela–President Nicolás Maduro, hoping for an economic miracle to salvage his country, has placed his trust in an obscure Marxist professor from Spain who holds so much sway the president calls him “the Jesus Christ of economics.”
Alfredo Serrano–a 40-year-old economist whose long hair and beard have also elicited the president’s comparison to Jesus–has become the central economic adviser to Mr. Maduro, according to a number of officials in the ruling United Socialist Party and other government consultants.
. . .
Most international and domestic economists blame Venezuela’s food shortages, which have triggered riots, on price controls and expropriations. Mr. Serrano, though, attributes an “inefficient distribution system in the hands of speculative capitalism,” which he says allows companies to hoard products. He also says foreign and local reactionary forces are waging an economic war against Venezuela.
The adviser has championed urban agriculture in a country where about 40% of fertile land is left fallow by price controls and seed shortages. Mr. Maduro created the Ministry of Urban Agriculture, headed by a 33-year-old member researcher at Mr. Serrano’s think tank, Lorena Freitez. A senior adviser at the think tank, Ricardo Menéndez, heads the planning ministry.
“Serrano is a typical European leftist who came to Latin America to experiment with things no one wants at home: state domination, price controls and fixed exchange rates,” said José Guerra, a Venezuelan opposition lawmaker and former chief economist at the central bank.

For the full story, see:
ANATOLY KURMANAEV and MAYELA ARMAS. “Maduro Turns to Spanish Marxist for a Miracle.” The Wall Street Journal (Tues., Aug. 9, 2016): A9.
(Note: ellipsis added.)
(Note: the online version of the story has the date Aug. 8, 2016, and has the title “Venezuela’s Nicolás Maduro Looks to a Marxist Spaniard for an Economic Miracle.”)

Venezuelans Revel in Socialist Paradise of Plenty

SearchForFoodInLootedCumanaGroceryStore2016-07-11.jpg“A man searched for food last week at a grocery store in Cumaná that had been looted.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A1) CUMANÁ, Venezuela — With delivery trucks under constant attack, the nation’s food is now transported under armed guard. Soldiers stand watch over bakeries. The police fire rubber bullets at desperate mobs storming grocery stores, pharmacies and butcher shops. A 4-year-old girl was shot to death as street gangs fought over food.
Venezuela is convulsing from hunger.
Hundreds of people here in the city of Cumaná, home to one of the region’s independence heroes, marched on a supermarket in recent days, screaming for food. They forced open a large metal gate and poured inside. They snatched water, flour, cornmeal, salt, sugar, potatoes, anything they could find, leaving behind only broken freezers and overturned shelves.
And they showed that even in a country with the largest oil reserves in the world, it is possible for people to riot because there is not enough food.
In the last two weeks alone, more than 50 food riots, protests and mass looting have erupted around the country. Scores of businesses have been stripped bare or destroyed. At least five people have been killed.
. . .
(p. A3) It has not always been clear what provokes the riots. Is it hunger alone? Or is it some larger anger that has built up in a country that has crumbled?
Inés Rodríguez was not sure. She remembered calling out to the crowd of people who had come to sack her restaurant on Tuesday night [June 14, 2016], offering them all the chicken and rice the restaurant had if they would only leave the furniture and cash register behind. They balked at the offer and simply pushed her aside, Ms. Rodríguez said.
“It is the meeting of hunger and crime now,” she said.

For the full story, see:
NICHOLAS CASEY. “Pillaging by Venezuelans Reveals Depth of Hunger.” The New York Times (Mon., JUNE 20, 2016): A1 & A3.
(Note: ellipsis, and bracketed date, added.)
(Note: the online version of the story has the date JUNE 19, 2016, and has the title “Venezuelans Ransack Stores as Hunger Grips the Nation.”)

Basic Goods Unavailable in Socialist Venezuela

(p. 5) I used to laugh when I heard that reporters were headed to Caracas with their own deodorant. I thought they were just being fussy.
Then came my turn.
I brought Old Spice. For detergent, I brought a ton of Tide. That’s one of my bags above, and all the other essentials that came along: two nasal spray bottles, three tubes of toothpaste, one package of floss, a bottle of body wash, shaving cream, contact lens solution, AA batteries, sponges, detergent, toilet paper and a big bottle of ibuprofen. Two bottles of Scotch.
If a selfie in the airport is a rite of passage for those leaving Venezuela, a preflight run to the supermarket to fill a suitcase with basic goods is the ritual for those arriving here.
Since the economy fell into deep collapse in 2015, some things just aren’t sold here. Other items — like toilet paper — are on the black market but can be tricky to find.
My friend Girish has been making these trips for the last five years. I asked him before moving here what to pack, besides toilet paper.
He responded, via text: “Medicine. First Aid stuff. Spices/other food you like. Kindle (as books aren’t so easy to get here), shampoos/toiletries etc if you like something specific…”
Like some people here, Girish brings enough to get him through a month or so. Then he makes a pit stop in Colombia to fill up the cabinet again.
But most people in Venezuela can’t leave and have to make do with whatever they can find.

For the full story, see:
NICHOLAS CASEY. “Settling Into Venezuela, a Land in Turmoil.” The New York Times, First Section (Sun., Jan. 24, 2016): 5 & 9.
(Note: ellipsis added.)
(Note: the online version of the story has the date January 5 [sic], 2016, and has the title “Moving to Venezuela, a Land in Turmoil.”)

Sanders’s Economics Agenda: “Magic Flying Puppies with Winning Lotto Tickets Tied to Their Collars”

(p. A9) WASHINGTON — With his expansive plans to increase the size and role of government, Senator Bernie Sanders has provoked a debate not only with his Democratic rival for president, Hillary Clinton, but also with liberal-leaning economists who share his goals but question his numbers and political realism.
. . .
By the reckoning of the left-of-center economists, none of whom are working for Mrs. Clinton, the proposals would add $2 trillion to $3 trillion a year on average to federal spending; by comparison, total federal spending is projected to be above $4 trillion in the next president’s first year. “The numbers don’t remotely add up,” said Austan Goolsbee, formerly chairman of President Obama’s Council of Economic Advisers, now at the University of Chicago.
Alluding to one progressive analyst’s criticism of the Sanders agenda as “puppies and rainbows,” Mr. Goolsbee said that after his and others’ further study, “they’ve evolved into magic flying puppies with winning Lotto tickets tied to their collars.”

For the full story, see:
JACKIE CALMES. “Left-Leaning Economists Question Sanders’s Plans.” The New York Times (Tues., FEB. 16, 2016): A9.
(Note: ellipsis added.)
(Note: the online version of the story has the date FEB. 15, 2016, and has the title “Left-Leaning Economists Question Cost of Bernie Sanders’s Plans.”)

Irony that Kafka Statue Faces Prague City Government Building

(p. 10) Prague is sprinkled with provocative pieces by Mr. Cerny — a sculpture of a urinating man (directly in front of the Franz Kafka Museum), a statue of the Czech patron saint King Wenceslas sitting on an upside down dead horse.
His most recent installation in Prague is a sculpture of Kafka’s head, set behind the Tesco department store in the center of town. The 36-foot-high head is made up of 42 moving chrome-plated layers, which move both in synchronicity and in opposing directions.
Mr. Cerny’s original idea was a fountain featuring three figures: a robot, referencing the Czech-language writer Karel Capek, who coined the term; a Golem, representing the Yiddish language; and Kafka’s beetle, referring to the German language. “I wanted to remind people that Prague was once a city of three languages,” Mr. Cerny said.
Unfortunately, city water regulations prevented him from placing a fountain there, so instead he came up with the huge reflecting Kafka head, which is based on similar work of his on display in Charlotte, N.C., called “Metalmorphosis.”
“I loved the irony that this sculpture faces a city government building in Prague,” he said. “Imagine you’re angry because the clerks are doing nothing, only saying for you to go to another office and then another office and another until finally you hear, ‘This office is closed.’ And then you walk out of the building, and there’s the huge head of Kafka looking at you, reminding you of the irony.”

For the full story, see:
DAVID FARLEY. “Footsteps; Prague; On the Trail of Kafka’s Legacy.” The New York Times, Travel Section (Sun., DEC. 27, 2015): 10.
(Note: ellipses, and bracketed dates, added.)
(Note: the online version of the story has the date DEC. 22, 2015, and has the title “Footsteps; On the Trail of Kafka in Prague.”)

In Poor Province, Chinese Communists Spend Over $400,000 Building Giant Golden Statue of Mao, Starver of Millions of the Proletariat

(p. B1) ZHUSHIGANG, China — Just two days after images of a giant gold-colored statue of Mao in the bare fields of Henan Province spread across the Internet, the statue was gone — torn down apparently on the orders of embarrassed local officials.
Villagers said demolition teams arrived on Thursday morning [January 7, 2016], and by Friday morning [January 8, 2016], only a pile of rubble remained.
The 120-foot-tall statue, which local media reports said cost $465,000, had been under construction for months and was nearing completion when it began to attract attention.
Some commenters on social media denounced the extravagance of the colossus in a poor, rural part of China, where the money might have been better spent on education or health care.
. . .
Others pointed out the historical irony of erecting the statue in one of the provinces worst hit by the famine caused by Mao Zedong’s Great Leap Forward.
. . .
Statues of Mao, the founder of the People’s Republic of China, were once ubiquitous in China, and many survive. President Xi Jinping has often praised Mao as a model for China today, saying Mao’s era was one when officials were selfless and honest.
But some of his policies were disastrous, including the forced agricultural collectivization and industrialization of the Great Leap Forward, which historians blame for a famine in which tens of millions of people died.

For the full story, see:
DIDI KIRSTEN TATLOW. “An Outcry Helps Topple a Mao Statue 120 Feet Tall.” The New York Times (Sat., JAN. 9, 2016): A4.
(Note: ellipses, and bracketed dates, added.)
(Note: the online version of the story has the date JAN. 8, 2016, and has the title “Golden Mao Statue in China, Nearly Finished, Is Brought Down by Criticism.”)

“We’re from the Streets and We Want Change”

(p. A9) CARACAS, Venezuela — On a sunny afternoon, Jorge Millán, an opposition candidate for congress, walked through the narrow streets of a lower-middle-class neighborhood, pressing the flesh in what was once a no man’s land for people like him.

. . .
With the economy sinking under the weight of triple-digit inflation, a deep recession, shortages of basic goods and long lines at stores despite the nation’s vast oil reserves, the opposition has its best chance in years to win a legislative majority.
. . .
“I was a Chavista, but Chávez isn’t here anymore,” said Mr. Omaña, referring to the followers of the former president.
“It’s this guy,” he said, referring to Mr. Maduro. “It’s not the same.”
Mr. Omaña complained about having to stand in long lines to buy food and about the fast-rising prices, saying that for the first time since Mr. Chávez was elected in 1998 he would vote for an opposition candidate.
“Enough is enough,” he said. “We need something good for Venezuela.”
Venezuelan politics was dominated after 1998 by Mr. Chávez and the movement he started, which he called the Bolivarian revolution, after the country’s independence hero, Simón Bolívar. Mr. Chávez died in 2013, and his disciple, Mr. Maduro, was elected to succeed him, vowing to continue Mr. Chávez’s socialist-inspired policies.
. . .
Opposition candidates said one of the biggest surprises of the campaign has been the warm reception they have received in what were once hostile pro-government strongholds.
Carlos Mendoza, 53, a motorcycle taxi driver and former convict who works in the district where Mr. Millán is running, said that he belongs to a group, known as a colectivo, that in the past was paid by the government to help out during campaigns, attend rallies and drive voters to the polls. Such groups were also often used to intimidate opposition supporters.
“They called us again this time,” Mr. Mendoza said. “I told them, ‘No way, you’re not using me again.’ ”
“We’re from the streets,” he said, “and we want change.”

For the full story, see:
WILLIAM NEUMAN. “Venezuela’s Economic Pain Gives Opposition Lift Before Vote.” The New York Times (Sat., DEC. 5, 2015): A9.
(Note: ellipses added.)
(Note: the online version of the story has the date DEC. 4, 2015, and has the title “Venezuela’s Economic Woes Buoy Opposition Before Election.”)

Marxist Wrecks Brazil Economy

(p. A6) “The Brazilian model celebrated just a few years ago is turning into a slow-motion train wreck,” said Mansueto Almeida, a prominent commentator on economic policy. “Our political leaders want to point fingers at China or some external villain, but they cannot escape the fact that this self-inflicted crisis was made in Brazil.”
Even with the country’s legacy of economic turmoil, some historians say that Ms. Rousseff’s track record on economic growth ranks among the worst of any Brazilian president’s over the last century.
. . .
Hoping to prevent Brazil from cooling too much after the sizzling boom of the previous decade, Ms. Rousseff, 67, a former Marxist guerrilla who was tortured during the military dictatorship in the 1970s and took office in 2011, doubled down on bets that she could stave off a severe slowdown by harnessing a web of government-controlled banks and energy companies.
Ms. Rousseff pressured the central bank to reduce interest rates, fueling a credit spree among overstretched consumers who are now struggling to repay loans. She cut taxes for certain domestic industries and imposed price controls on gasoline and electricity, creating huge losses at public energy companies.
Going further, she expanded the sway of Brazil’s colossal national development bank, whose lending portfolio already dwarfed that of the World Bank. Drawing funds from the national treasury, the bank, known as the B.N.D.E.S., increased taxpayer-subsidized loans to large corporations at rates that were often significantly lower than those individuals could obtain from their banks.
Ms. Rousseff’s critics argue that she also began using funds from giant government banks to cover budget shortfalls as she and her leftist Workers’ Party headed into elections.
“They deliberately destroyed the public finances to obtain re-election,” said Antônio Delfim Netto, 87, a former finance minister and one of Brazil’s most influential economists. Taking note of the government’s inability to rein in spending as a budget deficit expands, Mr. Delfim Netto and other economists are warning that officials may simply opt to print more money, stirring ghosts in an economy once ravaged by high inflation.
. . .
Unemployment is expected to climb even higher as the authorities ponder ways to cut a federal bureaucracy that grew almost 30 percent from 2003 to 2013, to 600,000 civil servants.
A pension crisis is also brewing, partly because of laws that allow many Brazilians to start receiving retirement benefits in their early 50s, even though life expectancy has increased and the fertility rate has fallen, limiting the number of young people to support the aging population.
“How can a person who is 52 years old be able to retire with a pension?” Luiz Fernando Figueiredo, a former central bank official, asked reporters. “These things have to be confronted. If not, the country will become another Greece.”
Parts of Brazil’s business establishment are in revolt, openly expressing disdain. Exame, a leading business magazine, devotes an entire section called “Only in Brazil” to documenting problems with the public bureaucracy.
These examples include a $120 million light-rail system in the city of Campinas that lies abandoned because of poor planning, and a measure requiring companies to obtain a special license before allowing employees to work on Sundays.

For the full story, see:
SIMON ROMERO. “As Boom Fades, Brazil Asks How Sizzle Turned to Fizzle.”The New York Times (Fri., SEPT. 11, 2015): A1 & A6.
(Note: ellipses, and bracketed word and date, added.)
(Note: the online version of the story has the date SEPT. 10, 2015, and has the title “As a Boom Fades, Brazilians Wonder How It All Went Wrong.”)

Political Freedom Depends on Economic Freedom–Hayek Was Right

(p. A12) The Commercial Press bookstore does not carry the banned political books. Instead, the collected speeches of China’s president, Xi Jinping, are prominently displayed, as are at least four biographies of Lee Kuan Yew, the late Singaporean leader who was widely admired by Chinese officials.
It is the same pattern in 13 other Hong Kong stores owned by the parent company of Commercial Press, Sino United Publishing, the biggest bookseller and publisher in the city. Despite the interest from mainland tourists, books that paint Chinese politicians in a bad light are either not available or tucked out of sight on shelves far from heavily trafficked areas.
. . .
According to Hong Kong corporate records and one of the company’s top executives, Sino United is owned, through a series of holding companies, by the Chinese government.
The company’s dominant position in the city’s publishing and bookselling industry is a major breach in the wall between the communist mainland and Hong Kong, a former British colony whose civil liberties — including freedom of the press — were guaranteed by treaty for half a century after it returned to Chinese sovereignty in 1997. It also illustrates how the central government in Beijing wields influence here not through force, but through its financial clout.
That influence has become even more apparent in the nearly three years since Mr. Xi became the top leader in China.

For the full story, see:
MICHAEL FORSYTHE and CRYSTAL TSE. “Hong Kong Bookstores Display Beijing’s Clout.” The New York Times (Tues., OCT. 20, 2015): A12.
(Note: ellipsis added.)
(Note: the online version of the story has the date OCT. 19, 2015,)