¡Felicitaciones, Venezuela!

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Grocery shopping in Venezuela

Yesterday we exulted in the November 22 victory in the Argentinian presidential elections of opposition candidate Mauricio Macri, who, promising to roll back socialist excesses and pursue an approach respectful of individual liberties and the free market, took power on December 10. But that victory, as we noted, was only the first part of a thrilling double play by the champions of liberty in South America. Let’s move now to Venezuela, where, since 1999, under the demagogic Hugo Chávez and then Nicolás Maduro, a despicable gang of stooges have impoverished the people in the name of chavismo, all the while shamelessly enriching themselves. On December 6, the Venezuelan electorate showed it was finally fed up with the empty promises, empty grocery-store shelves, and empty socialist rhetoric, and handed the National Assembly over to the opposition.

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Maduro in happier times

“Coupled with last month’s defeat of the ruling Peronist movement in Argentina’s presidential election,” wrote Juan Forero and Anatoly Kurmanaev in the Wall Street Journal, the outcome also signaled another important loss for leftist populism in South America.”

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Julio Borges

The Journal reporters quoted an opposition deputy, Julio Borges, as saying: “I feel as if we won the World Cup while playing with our two legs tied….This has been the most abusive campaign ever, but the important thing is that we were able to use democracy to beat a system that is deeply undemocratic.” Maduro, for his part, found a way (as always) to blame his party’s failure on the U.S. “We’ve lost a battle,” he said, “but the struggle to build socialism is only beginning.” He also insisted that the victory belonged not to “the opposition” but to “a counter-revolution.”

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Lilian Tintori, wife of Leopoldo López, cheering the opposition victory with leaders of the Democratic Unity Movement

The opposition’s triumph at the polls, it was noted, will likely mean freedom for political prisoners such as Leopoldo López, the highly accomplished  – and highly popular –former mayor of one of the constituent cities of Caracas. López has been behind bars since February 2014, for no other reason than that President Maduro recognized him as a palpable threat to his own power. The election results will also enable the new legislature, which takes power on January 5, to address the problems (including an inflation rate topping 200%) that make Venezuela’s economy the world’s worst-performing, according to the International Monetary Fund. It’ll make possible desperately needed judiciary and administrative reforms. 

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Leopoldo López, who stands to be released from prison after the opposition takes control of the Venezuelan legislature

But it won’t be easy. To pull Venezuela out of its “death spiral,” wrote Forero and Kurmanaev, the new members of the legislature will need to make “a series of painful and unpopular adjustments, rolling back more than a decade of populist and statist policies” –notably an outrageously impractical system of social-welfare programs that the country simply can’t afford (especially given the constant flow of taxpayer cash into the chavista elite’s private offshore accounts).  

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Srdja Popovic

There are other reasons for concern, too. As Srdja Popovic and William J. Dobson warned in Slate, the opposition’s struggle to undo chavismo “is nowhere near over. Maduro and the ruling party will attempt to marginalize this victory in the weeks and months ahead…. Expect the courts to issue rulings circumscribing the powers of the legislature. Expect new edicts and orders concentrating even more power into the executive. Look for government budgets and competencies to shift. Watch out for allegations of corruption and criminal offenses against key members of the opposition.”

In short, the new powers-that-be in Argentina and Venezuela alike have their work cut out for them. It won’t be easy to turn these tragically broken systems around. But the election results send a powerful and encouraging message: namely, that the people of both countries have seen through the lies of their socialist leaders and cast a vote for individual liberty and the free market. And that, in itself, is cause for celebration.

Joseph Stiglitz: Greeks bearing gifts

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Joseph Stiglitz

During the last couple of days, we’ve been pondering the career and views of big-government economist Joseph Stiglitz. We started out on Monday by mentioning Stiglitz’s glittering résumé. Here’s a little P.S. about that résumé: writing last year in National Review, Eliana Johnson noted that while it ran (at that point) to 56 pages, it omitted a good deal of Stiglitz’s speaking and consulting activity – even though, at $40,000 per lecture, he earned most of his income from that activity. These omissions, noted Johnson, were in direct violation of the transparency rules in effect at the Columbia Business School, where Stiglitz teaches. They also hid what any sensible observer would recognize as clear conflicts of interest. 

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Angela Merkel

What kinds of omissions – and conflicts of interest – are we talking about here? Well, one of them involves Greece. Over the course of the Greek financial crisis, Stiglitz has weighed in repeatedly on the subject – consistently on the side of the Greek government. While other economists argue that Greece brought on its own economic woes by spending far more money on generous welfare benefits and the like than it could afford, confident that Germany and other rich EU members would keep making up the shortfall, Stiglitz has depicted Greece as an innocent victim and its EU partners (which eventually got sick of picking up the tab) as heartless heavies.

Germany, he charged in July 2015 at an international development financing summit in Addis Ababa, lacked “solidarity” with Greece. “Asking even more from Greece would be unconscionable,” he said. In response to Western leaders who criticized Greece for failing to collect taxes, he accused those same leaders of being hypocrites for “trying to undermine” his own efforts to institute an international tax system.

The same month, in an article for Time, Stiglitz even went so far as to compare Angela Merkel’s Germany to Hitler’s:

The U.S. was generous with Germany as we defeated it. Now, it is time for the U.S. to be generous with our friends in Greece in their time of need, as they have been crushed for the second time in a century by Germany….Greece needs unconditional humanitarian aid; it needs Americans to buy its products, take vacations there, and show a solidarity with Greece and a humanity that its European partners were not able to display.

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Stiglitz and Papandreou at a 2013 Columbia University forum

As if that weren’t enough, Stiglitz wrote a New York Times op-ed – also in July 2015 – casting Greece as a “sacrificial lamb” victimized by what he calls the “troika” – the International Monetary Fund, the European Central Bank and the European Commission.

What Stiglitz failed to acknowledge in these pieces – and elsewhere – is that he’s not a neutral observer of the Greek economic disaster. Far from it. From 2009 to 2011, he worked as a paid advisor to Greek prime minister George Papandreou, whom he’s described as a friend. In February 2010, while serving in that advisory position, Stiglitz actually said this about Greece: “There’s clearly no risk of default. I’m very confident about it.” Was he speaking as an honest, responsible analyst, or as a paid flunky? 

(A flunky, one might add, who was cashing checks from a government that should instead have been using that money to pay down its debts.)

More tomorrow.

 

Joe Stiglitz, Soros “point man”

Yesterday we started looking at Joseph Stiglitz, the massively influential Columbia University economist who derides “American-style capitalism” while preaching government intervention as the key to prosperity. We ended up by stating that while Stiglitz has been called a liberal, it really makes more sense to call him a socialist. Why?

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The Socialist International Commission on Global Financial Issues. Stiglitz can be seen along the right side of the table, leaning forward, between the windows

Well, to begin with, quite simply, he’s a card-carrying member of the Socialist International. In 2008, he chaired a Socialist International commission charged with “tackling the global financial crisis.” The commission’s other members included not just socialists but out-and-out Communists from around the world.

UNStiglitz is also a fervent enthusiast for the UN, a supporter for a dramatic increase in its power, and an advocate for the view that the U.S. and other sovereign states should be subordinated to that power. He’s one of those people who believe, perversely, that when you scrape together the (at best) dicey representatives of a hundred or so corrupt, poor, unfree, incompetently managed nations and pack them into a building on First Avenue in Manhattan, they magically turn into a body of wise, noble, upright sages who are equipt to restructure the world order – and reorder the world economy. Among the UN officials with whom Stiglitz has closely collaborated is Miguel D’Escoto, a hard-line Marxist who was foreign minister for the Communist Sandinista regime in Nicaragua, who won the USSR’s Lenin Peace Prize, who’s an outspoken enemy of both the U.S. and Israel, who has publicly hugged Iranian President Mahmoud Ahmadinejad – and who, a few years back, appointed Stiglitz “to chair a high-level U.N. task force to review the global financial system.”

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Miguel D’Escoto

As great as Stiglitz’s enthusiasm for the UN is his contempt for the International Monetary Fund. In his 2002 book Globalization and Its Discontents, according to Irwin M. Stelzer, Stiglitz “almost equates the consequences of policy failures by the International Monetary Fund with the consequences of Nazi Germany’s final solution.” What, in Stiglitz’s view, needs to be done to fix the IMF? Easy: give more power to the African countries that are the chief beneficiaries of its largesse. As Stelzer put it, “in a perfect world it would be sensible to confer more power on the recipients of IMF assistance so that the funds might be deployed more effectively. But we don’t live in that world. Ours is one in which kleptocratic African regimes impoverish their nations with a combination of misrule, military adventures, and policies that discourage inward investment.”

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George Soros

Then there’s Stiglitz’s connection to George Soros, the far-left multibillionaire who is actively seeking to use his wealth to transform the world – and, not least, as we’ve seen in previous posts on this site, diminish American power and American freedom. Soros, as Cliff Kincaid has observed, “wants to phase out the U.S. dollar as the international reserve currency and bring the U.S. into a system of international socialism, with new and more powerful global agencies deciding our economic and financial fate.” And who is Soros’s “point man” on this alarming project? None other than Joe Stiglitz – who, as head of a Soros-funded NGO called the Initiative for Policy Dialogue, is fighting for the institution of “a new international currency” and of an international taxation system.

Yes, you read that right: an international taxation system.

More tomorrow.