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Socialism in Action

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Our buddy Hugo has announced plans to nationalize telecom and electricity in Venezuela. Here's our chance to watch socialism occur in a more or less open country.
http://www.breitbart.com/news/2007/01/08/D8MHAMG00.html

The interesting thing is that little tidbit at the end about the pension company. If the minimum wage is being raised repeatedly (pay attention California) it normally destroys small business by making them unprofitable, or forcing the owners to work crazy hours because he cant hire enough people. The wal marts of the world, for all their issues, rarely pay minimum wage. This has the effect of allowing the government to further demonize big business, "look our small business are being driven out by large ones", never mind that it is the government itself raising the cost of doing business.

The pension company is unique though, if the payments into the plan allow the company to pay X per recipient per year, ordering the company to play X *2 will not allow it to remain solvent, this will have 1 or two end results:

1. Said pension company goes bankrupt and lots of retiree's need to go on the equivalent of food stamps.

2. The government subsidizes or nationalizes the company which will be even worse for the economy of Venezuela.

Venezuela can afford to be unrealistic with its economy right now because of its fossil fuel reserves, but if you spend money like a drunken sailor, sooner or later the cash runs out.