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Here’s Why Venezuela Is a Capitalist Country

Is Venezuela is truly a socialist/communist country, or just the result of several interventions by “economic hitman” sent by the CIA? (I’ve actually seen people mention this as a valid theory).

Let’s say I get up from my desk right now and go buy a t-shirt. 9 times out of 10 the price they’ll mention won’t be in Bolivares (the local currency) instead, it’ll be in US dollars. Why?

Because hyperinflation has rendered the local currency pretty much worthless. So it makes no sense to put a price tag on something when you’ll have to change it two or three days from now.

So everyone, from Instagram stores selling clothes and jewelry to entire shopping malls, are all using the US dollar as their primary currency. But, what does this have to do with Venezuela being a capitalist country? Simple…

These people set their own prices based on the law of supply and demand. Even for “regulated” items like food and foreign currencies. As I explained here, once the government steps in, you won’t find that item anywhere. The solution?

You go to the black market. There, prices are controlled by supply and demand and not the latest government mandate. However, this doesn’t just apply for business owners…

Most Venezuelans have learned to buy and “flip” cars, electronics, food… whatever they can get their hands on. Because the alternative is (if you’re lucky) a job which pays $50/month at best.

So even what many would call a socialist country… is rooted in an old-fashioned free-market economy.

Did you know this was the case? How did you imagine life in Venezuela?

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Here’s Why Venezuela Is a Capitalist Country

by Omar Cagua time to read: 1 min