Socialism Works - In One Chart

Tyler Durden's picture

As the US practically decrees a Maserati in every garage, it would seem the Venezuelan version of socialism is not encouraging its wealth redistributed, price-managed, margin-controlled, centrally-planned citizens to buy cars... January saw the lowest volume of car sales ever on record at 722 (not '000s) having dropped 87% year-over-year. At least they have record high stocks and toilet paper... oh wait...



Is The US today where Venezuela was 6 years ago?


Data: Bloomberg

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blabam's picture

Forward! (on foot) 

Dixie Rect's picture

At least we have plenty of green toilet paper, with much more to come off the presses.

graneros's picture

Ouch!  Charmin it ain't.  Try to use Benjies and up.  Everybody and their brothers have put their germ ridden mits on all lesser denominations.  Of course if things keep going the way they are million dollar bills will be the norm.

NOTaREALmerican's picture

Re: As the US practically decrees a Maserati in every garage

WHAT?   I think the top 10% - who own all the politicians and corporations - know the losers in the bottom 90% won't have any Maserati's.

The welfare state only exists to keep the dumbasses from revolting.  Maserati's are owned by people who own everything else, and it ain't the bottom 90%.

TheReplacement's picture

How much would it cost for the gov't to fund the purchase of a Maserati for the 47%?  How much is spent on welfare programs now?

NoDebt's picture

I live in an area where such cars are.... I won't say commonplace, but you see a few here and there.  Maserati is the hot brand to own lately around my way.  I see more of them than Ferraris or high end Porsches these days.  Even Jaguars don't outnumber them by any huge ratio.

mumbo_jumbo's picture

"How much is spent on welfare programs now"

do we add in the $85 billion in free money to the banks per month...well it's been tapered to $75 billion?

do we add in the taxes the 60% of corporations that pay nothing 'should' be paying?

i need to understand your metric before i can provide the correct numbers OR are you just crying about the poor people who get welfare?

Tasty Sandwich's picture

That's nothing that 0.0% for 72 months with no money down can't fix.

Clowns on Acid's picture

ObamaFone, ObamaCare, coming up next ....ObamaCar.

NOTaREALmerican's picture

Why not?    If nobody can explain why it's ok to give Big-MIC money to build worthless crap, why not just give more money to Big-CAR and build everybody a Masarati?

NoDebt's picture

Government doesn't need to make the car, they just need to mandate the black box inside it that tracks everywhere you go, everything you do in it and all communications in and out of it.

In that respect, you already have an Obamacar, in all likelyhood.

Part of the reason I still have an old Malibu in my garage (my hotrod/weekend fun car).  Carburetor-fed, not a computer chip in it anywhere.  I even have an old points-style ignition sitting on the shelf for it just waiting.... in case a nuclear EMP blast blows out the module in the electronic ignition.  Yeah, I'm just crazy enough I don't think that's weird.

PubliusTacitus's picture

He’s got one already - GM


Or, more appropriately, OPM – Obama People Motors.


Page right out of Hitler’s playbook: Volkswagen, the car of the people.


All he needs to do is create artificial demand via zero rates and zero lending standards like college loans and housing, and instant boom!

graneros's picture

I can see it happening.  At this stage I would not even be surprised.  What a great way to push Obamcare.  Sign up today and get a free Volt.  It ain't like they don't have several thousand sitting around.

Make_Mine_A_Double's picture

I was reading in BA now the Hyundai SUV was 63K USD a couple of months ago is now 100K USD for a new model due Argi iniflation. Which I'm sure is probably an all cash arrangement in USD.

Maybe the plan should be to go out and buy a bunch of the new Dodge Rectums (beleive the trade name is Dart), take a can opener to the door and than declare them 'used' and ship on down to Puerto Cabello and import'em as used and clean house.



pashley1411's picture

Pffft, everyone knows the ride to have when things get real is a Toyota pickup, with .50 cal mounted in the back.

TheReplacement's picture

Speaking of which, I need a .50.  Seen any laying around?

Van Halen's picture

"As the US practically decrees a Maserati in every garage"

Good God, don't give Obama any more ideas!

chump666's picture

Of course it does, the greatest hustle against the common microbe, us, is promise the world, all the while we get fleeced.  You wanna change?  No gods, no masters.

"It is difficult to free fools from the chains they revere".



AchtungAffen's picture

Lovely how when Tyler talks about "socialism" he puts the Venezuelan example, which is an autocratic demagogy at best. But he always fails to mention the social democracies of northern Europe...

MagicMoney's picture

You mean like Norway that literally sits on a gold mine of natural resources, more than what it's own population needs? Being rich in natural resources, and milking it for socialist utopia doesn't show that socialism is great at all. Even dictators can extract oil from the ground. Socialist run out of other people's money, in case of Norway, they run out of money when their natural resources dry up to fund their large government.

AchtungAffen's picture

Well, don't you know that Venezuela too sits on a gold mine of oil too? That should be enough to know the difference, which is not resource based but political and social.

W74's picture

How can something fall greater than 100%?

Remember, the reciprocal of 200% positive is 50% negative.  Just the same a 90% slide is the reciprocal of a 1,000% gain.

OC Sure's picture

As you walk across the room, how will you ever reach the other side if you keep traversing half the distance of the previous half?


NoDebt's picture

Left hand margin for the units, right hand margin for the YoY change percentage.

Rising Sun's picture

Venezuela leading the way - fucking shithole place.

grekko's picture

I don't know about anyone else, but I cry for the people of that country.  As all socialist exploits happen in history, the lowest class (which is normally the biggest class) get a boost, then reality impedes and everything goes into the dumpster (buiseness, govt budget, and hence the lower class and middle class, corp profits, etc).  Welcome to history repeating itself once again.


MagicMoney's picture

Heh, well Venezuelans get what they deserve in my view. They wanted socialist democracy of taking from group to give to another instead of real property rights, well things like this can happen. I remember socialist cheering on Huge Chavez  and socialism in Venezuela few years ago on a You Tube video. Even defending the greatness of socialism & countering the video critical of Chavez regime by saying the economy is growing under socialism. Look at Venezuela now. What they didn't realize is that the state doesn't destroy economies overnight. It's a process. Socialist being more retributionist than people who grow the economy typically start capital consuming programs. Inflation in itself is capital consumption in the real economy for the benefit for the actions of the state, nevermind actually intervening with government directly to instill socialist ideals.


Most of Latin America has socialist leaning sentiment. They simply don't understand a market economy period in totality. Hence their violent reaction to "capitalism" with socialist revolution, then societal decay, and poverty.

youngman's picture

Brazils car sales dropped quite a bit too...11 to 15% and thier car exports dropped much more...