Socialism led to Venezuela's economic and humanitarian crisis

Channel: Fox Business
Published: 05/16/2019 01:38 PM

FBN's Jackie DeAngelis on the examples of socialism globally. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. Headquartered in New York — the business capital of the world — FBN launched i...

Welcome back socialism becoming a rally cry for many on the left going into 2027 2020 democratic presidential candidates have endorsed it. There are now questions about socialism in america and what that would look like jackie deangelis with the story now in new york good morning, jackie good morning to you maria, that's right, and why do we need to speculate what socialism would look like when we ...
can actually Just look around the world at examples of how it does look so we'll start with the most extreme example of. Obviously this doesn't happen overnight, but, let's start with venezuela, a country where socialism has played out in an ugly way once the richest country in latin americanow, an economy on the brink, totally falling apart. Corruption runs rampant, a humanitarian crisis developing and really a regime - that's collapsing at this moment in time, violence, it's a product of this country and violence. You look at the state-run oil industry resources that can never necessarily be recovered. Obviously it doesn't happen overnight. It takes time to get to that point, but you know sanders aoc. They love to point point to the nordic countries as sort of the model and they say we're not gon na be in venezuela. We can be more like this, but denmark, sweden, finland. These are economies and countries with much smaller populations. We'Ve 325 million mouths to feed in denmark, you've gota little bit more than five million people, and some would argue that it's not necessarily even a socialist system at all. There'S some government intervention within business, but a lot of the revenue is generated from vat taxes and that's coming from the citizens themselves.

So people will argue that they're living longer and that they're potentially living happier lives than we do here in the united states. But there are certainly issues in those societies and why even go that far? Let'S take a look at europe. You know we're constantly talking about brigs that headlines. Lately, let's start with where that all came from the eurozone debt crisis, where the weaker countries in the system we're pullingdown the stronger countries so simply put stating that the economy should be one way or another way, or we should be like this country or another country. It'S a really tough comparison to make, because each country is different and ours is particularly unique. You know it's interesting because, even though a lot of the programs that bernie sanders talks about elizabeth warren talks about our socialist programs, they try to get away from the socialist moniker right, so they're trying to call themselves some of the other than socialist. Like democrat socialist, isn't that right, byron? Well, the trump campaign is gon na try to make sure they can't get away from yeah. This is gon na, be a bigissue, if not among democrats, for the trump campaign in 2020, which is going to present the race as a choice between capitalism, freedom and socialism. But you know, i think, even the the president trump himself has got to put his finger on the fact that americans weren't very happy with the way our capitalist system was being run going into the the 20 2007 2008 financial crisis. So there's two debates here: one is to socialism fit the american model, but the other is: how do you improve the capitalist system that we've got that failed, a lot of people going into the last financial crisis and i think that's a big part of the democratic Primaries andalso part of the appeal of president trump, who grabbed all these blue-collar workers, who said this isn't working for me, yeah and and and jackie and dagan in new york. I mean one thing: is the income inequality and you know the trump administration somebody's gon na have to come up with some solutions to actually hit more people, or is it just the capitalist system that raises people out of poverty? It'S it's a really good question. Maria, and actually one of my sources yesterday said put it this way, you look at income, inequality and the disparity between workers and ceos.

For example, in the 70s, a ceo was making about 30 times what the average worker inthe company was now, in some cases it could be 14 hundred times and that's a really substantial stat people are feeling that in this country - and something should be done about well - But they jjan job growth that we've seen know since the taxes yeah for, say manufacturing. Even even people in leisure and hospitality has been outpacing, say managers, so that's actually how you reduce income inequality, it's just the beginning, but it's something and president trump can take credit for it's a really important point. I think the other really important issue here is trade right. So the whole idea of trade, free markets, open borders, the president is saying: no, no, no, that's not what's inour best interests he's very prepared to intervene to have this state intervene in american trade yeah there's they can really put her finger on it. Talking about wage. That'S right when president trump was making this appeal. Real wages has not increased for decades right and now, you're talking about three and a quarter percent this year over year, jack diesel's. Thank you.

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