Category: Socialism

“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,)

Venezuelans Irritated by Short Supply of Cerveceria Polar Beer

(p. 5A) CARACAS, Venezuela (AP) — Venezuelans are facing the prospect of a heat wave without their favorite beer, the latest indignity in a country that has seen shortages of everything from disposable diapers to light bulbs.
Cerveceria Polar, which distributes 80 percent of the beer in the socialist South American country, began shutting down breweries this week because of a lack of barley, hops and other raw materials, and has halted deliveries to Caracas liquor stores.
“This is never-never land,” said Yefferson Ramirez, who navigated a rush of disgruntled customers Thursday behind the counter at a corner store in posh eastern Caracas. The shop has been out of milk and bottled water for months, but the beer shortfall is provoking a new level of irritation.

For the full story, see:
Associated Press. “Venezuela’s top beer scarce amid heat wave.” Omaha World-Heraldl (Sat., Aug. 8, 2015): 5A.
(Note: the online version of the story has the date Aug. 7, 2015.)

Venezeuelan Socialists Seize Warehouses of Cerveceria Polar Beer

PolarWorkersProtestSocialistsSeizingProperty.jpg “Polar workers protested the government’s decision to expropriate warehouse land in Caracas on Thursday [July 30, 2015].” Source of caption and photo: online version of the WSJ article quoted and cited below.

(p. A7) CARACAS, Venezuela–The government ordered major food companies, including units of PepsiCo and Nestlé Inc., to evacuate warehouses in an area where the state plans to expropriate land to build low-cost housing.
. . .
Manuel Larrazábal, a director at Polar, said he hoped the government would reconsider the measure. “We don’t doubt that they need to construct housing, which is so important, but we ask why it has to affect active industrial facilities.”
. . .
Some workers painted messages including “No to expropriation” and “Let us work” onto the walls of the industrial park and on dozens of trucks that lined the streets outside, which were blocked by police and National Guard. Polar said the move would affect some 600 workers, as well as 1,400 employees who transport their goods around Caracas and two neighboring states.
. . .
Polar suspended operations at its facility after getting the order Wednesday night. The expropriation order extends a history of shaky relations between it and the government, which began under the late leader Hugo Chávez and continues under his protégé, Mr. Maduro.
In recent months, the company, which is the largest beer maker in Venezuela, said it had to halt work at several plants and breweries due to labor strife. It has also struggled with difficulties in acquiring raw materials and U.S. dollars to pay overseas suppliers, a process controlled by the government due to complicated currency regulations.

For the full story, see:
KEJAL VYAS . “Venezuela Takeover Order Riles Companies; Maduro’s government wants industrial zone to build housing for poor.” The Wall Street Journal (Fri., July 31, 2015): A7.
(Note: ellipses added.)
(Note: the online version of the story has the date July 30, 2015.)

Keeping Growth Rate High in China Achieved by More Misallocation of Capital

(p. A11) . . . , it is Beijing’s recent moves to ease fiscal policy that will ensure that this year’s growth target can be met. Unlike traditional Keynesian stimulus programs, which are typically conducted at the central-government level, in China fiscal easing primarily involves providing additional state-bank money to local governments.
This has a more immediate and powerful effect on GDP growth and job creation, but it comes at a high cost: overinvestment in local projects and the misallocation of capital. China’s landscape is littered with unused highways and airports, redundant steel and cement plants, unnecessary municipal office buildings and “ghost cities” filled with empty high-rises and deserted shopping malls.
From 2009-13, “ineffective investment” amounted to a stunning 41.8 trillion yuan ($6.8 trillion), according to research published in 2014 by Xu Ce of China’s National Development and Reform Commission and Wang Yuan of the Academy of Macroeconomic Research.
That China is heading down this path again can only mean that it has no other way to reach its growth target. It is also an indication of how little the economic system has changed despite the leadership’s much vaunted reform initiatives and efforts to tackle corruption at all levels of government.

For the full commentary, see:
MARK A. DEWEAVER. “Why China Will Still Reach Its Target Growth Rate; The stock market crash won’t stop Beijing from shoveling trillions into wasteful local projects.'” The Wall Street Journal (Fri., July 31, 2015): A11.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date July 30, 2015.)

Pope Rejects Market Mechanisms Because Pope Rejects Market’s Respect for Consumer Choice

(p. A19) The pope is not hostile to market mechanisms because he is a raving socialist, as some have suggested. Instead, his stance is a natural consequence of his theology.
To understand the pope’s position, remember that, even though he is adopting a progressive stance on the environment, he is not a liberal. Indeed, he rejects one of the central tenets of liberalism, which is a willingness to acknowledge genuine disagreement about the good.
The fundamental problem with markets, in Pope Francis’ view, is that they cater to people’s desires, whatever those desires happen to be. What makes the market a liberal institution is that it does not judge the relative merits of these desires. The customer is always right.
Pope Francis rejects this, describing it as part of a “culture of relativism.” The customer, in his view, is often wrong. He wants an economic system that satisfies not whatever desires people happen to have but the desires that they should have — a system that promotes the common good, according to the church’s specification of what that good is.

For the full commentary, see:
JOSEPH HEATH. “Pope Francis’ Climate Error.” The New York Times (Sat., JUNE 20, 2015): A19.
(Note: ellipses added.)
(Note: the online version of the commentary has the date JUNE 19, 2015.)

The Bureaucratic Absurdities of Socialized Medicine

(p. 13) Reading “Do No Harm,” Henry Marsh’s frank and absorbing narrative of his life in neurosurgery, it was easy to imagine him at the table. The men, and increasingly women, who slice back the scalp, open the skull and enter the brain to extract tumors, clip aneurysms and liberate nerves, share a certain ego required for such work. They typically are bold and blunt, viewing themselves as emperors of the clinical world. Marsh adds irony to this characterization, made clear in the opening line of the book, “I often have to cut into the brain and it is something I hate doing.”
. . .
Britain’s National Health Service is a socialized system, and Marsh chafes at new rigid rules imposed by its administrators. He is particularly incensed by a mandatory dress code: Neurosurgeons are subject to disciplinary action for wearing a wristwatch. There is scant evidence that this item contributes to hospital infections, but he is shadowed on ward rounds by a bureaucrat who takes notes on his dress and behavior. The reign of the emperor is ending, but Marsh refuses to comply and serve as a myrmidon.
Clinical practice is becoming a theater of the absurd for patients as well. Hospital charts are filled with N.H.S. forms detailing irrelevant aspects of care. Searching for a patient’s operative note, Marsh finds documentation she passed a “Type 4 turd.” He shows her an elaborate stool chart “colored a somber and appropriate brown, each sheet with a graphically illustrated guide to the seven different types of turd. . . . She looked at the document with disbelief and burst out laughing.”

For the full review, see:
JEROME GROOPMAN. “Consider the Comma.” The New York Times Book Review (Sun., MAY 24, 2015): 13.
(Note: ellipsis between paragraphs, added; ellipsis within paragraph, in original.)
(Note: the online version of the review has the date MAY 21, 2015, and has the title “‘Do No Harm,’ by Henry Marsh.”)

(p. C6) Amid the life-or-death dramas of neurosurgery in this book are some blackly comic scenes recounting the absurdities of hospital bureaucracy in the National Health Service: not just chronic bed shortages (which mean long waits and frantic juggling of surgery schedules), but also what Dr. Marsh calls a “loss of regimental spirit” and ridiculous meetings, like a slide presentation from “a young man with a background in catering telling me I should develop empathy, keep focused and stay calm.”

For the full review, see:
MICHIKO KAKUTANI. “From a Surgeon, Exhilarations and Regrets.” The New York Times (Tues., MAY 19, 2015): C1 & C6.
(Note: the online version of the review has the date MAY 18, 2015, and has the title “Books of The Times; Review: In ‘Do No Harm,’ a Brain Surgeon Tells All.”)

The book under review, in both reviews, is:
Marsh, Henry. Do No Harm: Stories of Life, Death, and Brain Surgery. New York: Thomas Dunne Books/St. Martin’s Press, 2015.

Nazi Urban Planners

(p. D5) Vienna
In May 1938, shortly after the Nazi annexation of Austria, Hitler made the following pronouncement: “In my eyes Vienna is a pearl to which I will give a proper setting.” That quote, with its ominous overtones, is the starting point of “Vienna: Pearl of the Reich. Planning for Hitler,” at the Architekturzentrum Wien, the National Architecture Museum of Austria, which is housed in Vienna’s MuseumsQuartier. This fascinating exhibition reveals the Third Reich’s plans for the Austrian capital. In this untold chapter of World War II, the perpetrators are not storm troopers or concentration camp Kommandants, but architects and urban planners.

For the full review, see:
A.J. GOLDMANN. “City Planning, Nazi Style.” The Wall Street Journal (Thurs., May 21, 2015): D5.
(Note: italics in original.)
(Note: the date of the online version of the review is MAY 20, 2015, and has the title “‘Vienna: Pearl of the Reich. Planning for Hitler’ Review.”)

“Red Tape Is Good for the Government but Not for Us Chinese People”

(p. A8) China’s seven million public servants have long been a target of scorn by citizens who accuse them of endemic laziness and corruption. Last year, a municipal water official in Hebei Province with a history of turning off the taps of customers who refused to pay kickbacks — including an entire village — was detained after investigators found $20 million hidden in his home.
In the southwestern province of Yunnan, officials at a local land reclamation bureau often leave for lunch around 10:30 a.m., returning after 3 p.m. “It simply gets too hot to do any work,” Pan Yuwen, an agricultural adviser, said one rainy day last month when the temperature was a less-than-sultry 60 degrees Fahrenheit.
But more than lackadaisical bureaucrats, it is the head-spinning tangle of regulations that infuriates many ordinary Chinese. At the heart of their ire is the hukou, or family registration, an onerous system akin to an internal passport that often tethers services like public education, subsidized health care and pensions to a Chinese citizen’s parents’ birthplace — even if he or she never lived there.
. . .
One recent afternoon, Li Ying, 39, sat in a fluorescent-lit Beijing government office, waiting for her number to be called so she could apply for a temporary residence permit that would allow her 6-year-old son to enroll in school.
Although Ms. Li moved to Beijing with her parents as a child in 1981, her hukou is registered in a distant town, meaning her son will be shut out of the city’s public schools without the permit.
Among the 14 required documents, Ms. Li must provide her hukou certificate, proof of residence, a diploma, a job contract, a marriage license, her husband’s identity card, his hukou, a certificate proving that she has only one child and a company document detailing her work performance and tax payments.
“What a headache,” she said, a pile of paperwork balanced on her lap. “Red tape is good for the government but not for us Chinese people.”

For the full story, see:
DAN LEVIN. “China’s Middle Class Chafes Against Maze of Red Tape.” The New York Times (Sat., MARCH 14, 2015): A4 & A8.
(Note: ellipsis added.)
(Note: the online version of the story has the date MARCH 13, 2015.)

How a Chavista Uses Her Chávez T-Shirt

(p. A1) CARACAS, Venezuela — Mary Noriega heard there would be chicken.
She hated being herded “like cattle,” she said, standing for hours in a line of more than 1,500 people hoping to buy food, as soldiers with side arms checked identification cards to make sure no one tried to buy basic items more than once or twice a week.
But Ms. Noriega, a laboratory assistant with three children, said she had no choice, ticking off the inventory in her depleted refrigerator: coffee and corn flour. Things had gotten so bad, she said, that she had begun bartering with neighbors to put food on the table.
“We always knew that this year would start badly, but I think this is super bad,” Ms. Noriega said.
Venezuelans have put up with shortages and long lines for years. But as the price of oil, the country’s main export, has plunged, the situation has grown so dire that the government has sent troops to patrol huge lines snaking for blocks. Some states have barred people from waiting outside stores overnight, and government officials are posted near entrances, ready to arrest shoppers who cheat the rationing system.
. . .
One of the nation’s most prestigious public hospitals shut down its heart surgery unit for weeks (p. A12) because of shortages of medical supplies. Some drugs have been out of stock for months, and at least one clinic performed heart operations only by smuggling in a vital drug from the United States. Diapers are so coveted that some shoppers carry the birth certificates of their children in case stores demand them.
. . .
The shortages and inflation present another round of political challenges for President Nicolás Maduro, who has vowed to continue the Socialist-inspired revolution begun by his predecessor, the charismatic leftist Hugo Chávez.
“I’ve always been a Chavista,” said Ms. Noriega, using a term for a loyal Chávez supporter. But “the other day, I found a Chávez T-shirt I’d kept, and I threw it on the ground and stamped on it, and then I used it to clean the floor. I was so angry. I don’t know if this is his fault or not, but he died and left us here, and things have been going from bad to worse.”

For the full commentary, see:
WILLIAM NEUMAN. “Oil Cash Waning, Venezuelan Shelves Lie Bare.” The New York Times (Fri., JAN. 30, 2015): A1 & A12.
(Note: ellipses added.)
(Note: the online version of the commentary has the date JAN. 29, 2015.)