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This is my observation: Chavez takes companies and converts them to joint ventures with multinationals. The multinationals own a portion of the stock, and they have some controls over the way these companies are run. The company management, which is blessed by the government, then fails to negotiate in good faith with the unionized labor force, and they suffer. The labor contracts are not really followed. Because inflation is very high (above 25 %), the workers suffer because their pay contracts are not indexed to the inflation rate. This gives management of these companies the ability to break the workers, who depend on the management's (the government's) decision to give them some raises.
The inflation rate, in alliance with the formation of these joint ventures, then becomes a weapon of power for the central government over the labor unions, and therefore they control the workers. I suspect many of the people who will vote for Chavez will do so because they are afraid of losing their jobs. This has been documented in the use by the government of the infamous Tascon list, which registered those who voted against the government, and was used to deny people employment and other benefits.
Another power mechanism they use is the currency controls, which are used in a very corrupt fashion to favor business owners who support the government. Other controls are used via the customs office, and the police, of course. If a business owner does not support the government, then he can not obtain foreign currency, or the permit to import spare parts and other materials. And because Venezuela imports almost everything it consumes, then this is a deadly weapon the government uses to control business. Only those who are allied with the government, in a fascist fashion, can survive.
There are many instances of arbitrary and illegal nationalizations, but the government autocracy owns the courts, which are puppets and dictate sentences according to the President's instructions.
Thus what we observe is the emergence of a nominally socialist (as we call socialism in Europe), but really fascist (that is, national socialist as practiced by the nazi party of germany under Hitler). The fascist tendency is also observed in the purchase of weapons, the militarization of society, and the seeking of conflict with other nations. For example, the Venezuelan president has insulted, in public, the presidents of almost all its surrounding countries, except for those who bow down to him such as the one in Ecuador. He has also threatened to go to war against Colombia, and even threatened the harmless Netherland Antilles, a group of small islands located near the Venezuelan coast.
Finally, there is the introduction of personality worship and the requirement of party members to swear allegiance to the maximum leader. Conclusion? This regime in Venezuela is closer to the fascism seen in nazi Germany than the socialism practiced in Europe. This government of Venezuela gives socialism a bad name. QED.
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