Milei and Maduro- socialism vs Liberty in Latin America

Yesterday yet another election was stolen by a despot: Maduro in Venezuela. Predictably, the social media left have come out in force to pretend an absolute majority of citizens voted for a government which has butchered their freedoms and living standards. In contrast, 5000 kilometres to the south, Argentines are enjoying the first fruits of laissez-faire market capitalism.

In the 20th century Venezuelans enjoyed one of the highest qualities of life in the Western world. The country boomed as it attracted migrants by the millions, not primarily from other Latin American States, but from the wealthy nations of Western Europe, struggling with the realities of a post-war economy.

Let's take a look at the socialist's least favourite thing: objective measures of economic development.

In 1950 only the United States, Switzerland and New Zealand enjoyed higher per capita incomes than Venezuelans.

GDP has declined by 80% in ten years. In the same period, the size of the Chilean economy (the most free-market oriented of Latin America's economies, second only now to Argentina) has doubled. As recently as 1989 Venezuela had the same GDP per capita as South Korea - Korea's is now 8 times greater.

Leftists will claim the recent decline is the result of US sanctions, conveniently leaving aside the fact that stating so is an admission that access to free trade with capitalist markets is a requirement for a state-driven economy to function. The truth is socialist:

Venezuela sits on the largest oil reserves on the planet, with more barrels per capita than Norway. It also wins in awe-inspiring resource mismanagement. During Chavez's dictatorship, the principles of Bolivarian Revolution tied the oil industry to The State (and himself.) While mammoth spending on social programmes did temporarily improve the condition of many of Venezuela's poor, the resulting inflation and refusal of the technical know-how of foreign corporations meant that maintaining the country's oil infrastructure became impossible. Exports have declined. Huge volumes of Venezuela's oil leak into Lake Maracaibo, an ecosystem of vital ecological importance. One wonders how many Maduro-supporting socialist net-zero fanatics choose to ignore the fact that Venezuela is a top exporter of fossil fuels and the Western hemisphere's undisputed leader in water pollution.

They also ignore the fact that, barring the short-lived and unsustainable boost at the start of Chavez's dictatorship, Venezuela's socialist policies have decimated the living standards of her working class. Shortages of food and other essentials are commonplace. Almost a third of the population have fled abroad, many living in appalling conditions in makeshift camps along the Colombian border. These are the indicators of a state-driven economy.

Earlier this year Maduro sought to divert attention from Venezuela's economic woes by threatening to invade neighbouring Guyana. Following international condemnation and the dispatch of a single British patrol ship (now a substantial chunk of the rump British Navy) to the region, he quickly backed down.

If he hangs on to power, Maduro will continue to look across his Eastern border with envious eyes: Guyana is enjoying one of the fastest rates of economic growth in the world, largely the result of a free partnership with Exxon Mobil. Democratic and enriching herself on the free-market, Guyana sits next door to Venezuela as her polar opposite and an irritating refutation of the Bolivarian world view.

The story of decline is similar, if slightly less extreme for Argentina:

During the first three decades of the 20th century Argentina outgrew Canada and Australia in per capita income, and in population as migrants look to have their piece of free market economic activity. GDP per capita remained higher than Spain's until the 1960s.

The second half of the century saw Argentina's economy characterised by rampant inflation, currency devaluations and debt defaults, each of these inexplicably following the introduction of a protectionist trade approach and an expansive monetary policy under Onagia and Peron.

Unlike Venezuela's botched attempt, the Argentines did actually go to war, partly out of nationalistic fervour and a denial of the principle of self-determination, and partly to distract the populace from their economic woes. It's fitting that the free-marketeer Thatcher was in office to liberate The Falklands, with an adequately funded armed forces thanks to tax receipts from genuine economic growth. (Defence is probably the only area in which large sums of government spending can be justified to the taxpayer. While they are currently in no position to take the islands - as Milei himself understands - if Argentina was to take The Falklands, The United Kingdom would be unable to retake the territory with a navy which is a mere shadow of its former self after decades of defence cuts. But this is a discussion for another day.)

Fast forward to today and Argentina has finally adopted true free-market capitalism under Milei. The chainsaw-toting and outspoken maverick is not everyone's cup of tea, but again let's take a look at the objective metrics. After slashing government spending, binning reams regulations and firing thousands of Civil servants, in just six months Argentina went from a $120 billion budget deficit to a surplus of over $20 billion, the first surplus in 12 years. Citizens of Buenos Aires can now find a home after the scrapping of rent controls. Further advances are unfortunately being held back by the trade unions and opposition MPs. As is the case universally, Argentine socialists have an aversion to progress. Regardless, the future looks brighter in Buenos Aires.

There are early signs that better times may be on the horizon for Venezuela. While officially Maduro secured 51.2% of the vote, the opposition claim over 70%. Opinion polls have consistently shown a strong lead for opposition candidate Edmundo Gonzalez.

While the cerebrally challenged left will continue to claim victory for Maduro, it is beyond clear that foul play has taken place: on Friday a flight containing former Latin American leaders on their way to observe the election was barred entry to Venezuela. Milei's Argentina, in cohort with Chile, Peru, Costa Rica, Panama, Uruguay and The Dominican Republic, have refused to recognise Maduro's claim of victory.

Large scale demonstrations are underway, this is all the more telling when one considers that the millions who have fled abroad - and therefore not present to vote and partake in these protests - are far more likely to be opposition supporters. Most encouragingly, reports are already incoming that the security services have been surrendering their weapons to the people. The current tally for toppled Chavez statues stands at eight and increases by the hour. Viva La Libertad!

One thing Maduro's regime has excelled at is locking people up. Surely room for one more.