In the United States, we’ve been seeing some efforts by the Marxist Obama administration to nationalize the auto industry and health care, too. This is what communists favor as the alternative to the free-market system. It makes sense, then, to look at how well the nationalization of assets, especially those owned by private companies, works out in the real world.
The Creole Petroleum Corporation was an American oil company, formed in 1920 to produce fields on Lake Maracaibo, Venezuela. The company was acquired by Standard Oil of New Jerseyin 1928. Until 1951 Creole Petroleum was the world’s number one oil producer.
In 1950, Creole opened its refinery at Amuay. This is now a part of the Paraguaná Refinery Complex.
The Venezuelan assets of Creole Petroleum Corporation were nationalized along with those of other foreign oil firms on January 1, 1976, becoming part of Lagoven, a Venezuelan government-owned operating company.
And here is the latest triumph of Marxist economics in Venezuela:
A huge explosion rocked Venezuela’s biggest oil refinery early Saturday, killing at least 24 people and injuring more than 80 others in the deadliest disaster in memory for the country’s key oil industry.
Balls of fire rose over the Amuay refinery, one of the largest in the world, in video posted on the Internet by people who were nearby at the time.
At least 86 people were injured, nine of them seriously, Health Minister Eugenia Sader said at a hospital where the wounded were taken. She said 77 people suffered light injuries and were released from the hospital.
Officials said those killed included a 10-year-old boy, but that most of the victims were National Guard troops stationed at the refinery.
Filthy capitalist dogs! Making money on the backs of the poor workers! Making them work in filthy, unsafe – oh, wait. When workers are left free to take their skills to a number of private employers, then those employers are pressured to provide them with better working conditions, wages and benefits. Otherwise the employees leave for better companies. The only problem is that it doesn’t work if all the industries are state-run monopolies. Then, you just get KA-BOOM!
All you have to do to understand economic systems is to compare capitalist Chile with communist Venezuela. One embraced free trade, private property, and the rule of law – and now that one is rich. The other one gets Chernobyl-like explosions.
- Socialist Hugo Chavez begins to use his new dictatorial powers
- Obama’s buddy Chavez nationalizes an American company
- Venezuela legislature votes to nationalize 11 US-owned oil rigs
- 80,000 tons of food rotting in Venezuela government warehouse
- Hugo Chavez confiscates private property as Venezuelan economy declines
- Owner of the last anti-Chavez TV station arrested in communist Venezuela
- OAS report details violence and lost freedoms in communist Venezuela
- Photos from the revolution against communism in Venezuela
- Venezuelans riot as communist Hugo Chavez seizes control of TV channel
- Hugo Chavez says that Haiti earthquake was caused by secret US weapon
- Chavez marches Venezuela down the road to serfdom at gunpoint
- Communist Venezuela introduces energy rationing in 2010
- Hugo Chavez shuts down 34 radio and TV stations in Venezuela
- Venezuela nationalizes Spanish-owned bank
- Obama restores diplomatic ties with Venezuela and Syria