Showing posts with label central planning. Show all posts
Showing posts with label central planning. Show all posts

Sunday, September 9, 2018

Public Shaming of a Hoarding Comrade

Newspaper clipping of  article about Baciu Viorel
from the 1980s during
Ceausescu's oppressive communist regime
People used to ask me what we ate when I was growing up in communist Eastern Europe. Women were quite thin and beautiful, on the “Ceausescu diet.” We were not just told how much to eat by decree but food was quite scarce and highly rationed. If a person dared to stash more food than the Communist Party deemed necessary, that person paid dearly in fines and eventually jail. Of course the elite class, in the classless utopia of a socialist country on its way to communism, had its own stores and food supply at low prices, never having to suffer the indignity of a rumbling empty stomach.

The heaping single plates of meat I see in American restaurants today would feed a family of three for quite a while. My mom, who is quite thin now in her advanced age, joked that she is back to the Ceausescu era thinness. In those times, if a person was overweight, others told them with a tone of envy, how good and fat they looked; they had found enough food and prosperity to afford to eat and gain weight without being investigated, shamed at work, or fined.

When the dear leader wanted to visit a grocery, dairy, or bread store to see how “his people” lived, fresh bread loaves and milk bottles were trucked in and then taken away as soon as he left. Staples like cooking oil, sugar, flour, and butter were also brought in from the communist apparatchiks’ stores and then whisked away before anyone had a chance to purchase anything.

The bread, milk, butter, oil, flour, and sugar lines were part of daily life and the socialist milieu. Walking around money was not to bribe politicians but to purchase food or scratchy and splintery toilet paper in case one encountered a long line where something needful would be sold that day.

In addition to fines and possible jail time, food hoarders were publicly shamed in the local and national newspapers which were run by the Communist Party.  Since their address was also provided, the readers were expected to ostracize them and sometimes beat them for their greed.

Such was the case of Baciu Viorel from Tirgu-Mures, domiciled on 1 Brasov Street, who decided to stock food for himself, perhaps his extended family, and maybe intending to sell some for profit to those who did not have time or stamina to stand in endless lines. The economic police raided his house and found too many bottles of cooking oil (34) and 26 kg of sugar in his pantry.

Obviously well-fed when compared to the gaunt proletariat, this man was presented as the enemy of the collective, to be condemned and derided. The 1980s article said that “Men like him disrupt normal commercial activity. Even though there are sufficient quantities of sugar and oil in stores, because of people like him who buy in excess of what they need, the stores are emptied daily. When food arrives, long lines form, causing thousands of people to lose precious time shopping. To end this situation, it is necessary to combat such hoarding, to brand those who are so selfish as to gather large quantities of food, interrupting normal commerce in stores.”

Having experienced the indignity of standing in endless lines in cold and hot weather to buy rationed food with rationing cards, food that often ran out before everyone in line had a chance to buy something, it is economically ludicrous to believe the Communist Party lies that one man’s hoarding disrupted delivery of enough food to the starving proletariat.  

It was the inadequate supply of everything that caused severe shortages of many items that Westerners take for granted in economies based on supply and demand. It was the centralized planning of economically ignorant community organizers who formed the Communist Party rank and file who made ill-advised production, supply, and distribution decisions.

Did Viorel deserve public opprobrium because he tried to survive by selling extras on the black market, the market the ineptitude of a socialist/communist regime had created? Who can blame him for hoarding food when nobody knew if they would find anything to eat the next day, when people fought in lines over bones stripped clean of any meat? Yet people used those bones to make soup. Extras in the pantry insured survival for many days without having to stand in those awful lines every day.

Was Viorel causing the long lines? Of course not, but socialists and communists are not known to be rational thinkers, they are indoctrinated sheeple who memorize and repeat what they are told without questioning, in exchange for special benefits.

When it comes to survival, other people were willing to pay the black market higher price in order to have food for their families without standing in line.

Friday, January 16, 2015

Food Lines Coming?

Food line in Venezuela
Photo: Wikipedia
Americans willingly stand in line for hours waiting for a store to open during Black Friday or to purchase tickets to a sought-after football game or concert.  They don’t mind freezing in the cold, sleeping in a tent on the side-walk hours and days before the store opens – they want to save $50 for a television set, find a toy that everybody else wants for Christmas, a popular electronic gadget, first issues of geek gear, or tickets to a favorite concert.

What if Americans had to get up early in the morning every day and run around numerous stores in town in order to find food, basic staples, and gas? Ask anybody this question and they will roll their eyes because, in their lifetime they’ve never had to suffer shortages of anything, they only remember abundance in the land of plenty.

Could that ever change? Of course not, most Americans would say. I and my fellow survivors of communism know better because we stood in such lines, I call them the lines of survival. We suffered the indignity of having to do without food, even after standing in lines with thousands of other people, only to find out that the supply ran out, or eating spoiled food that had to be boiled again in order to destroy the bacteria and make it edible.

This is what happens when a previously successful free market society is turned upside down by the socialist ideology utopia -- the free market collapses and is replaced by an inadequate and inept government control of the economy which results in serious disruptions to planning, production, and delivery of goods and services. The economy is no longer driven by supply and demand but by the central planning of government socialist bureaucrats who fill their coffers first and ignore the needs of the population at large while making grandiose speeches about how much they are helping the poor.

Most recent case in point is Venezuela. Hugo Chavez destroyed a formerly prosperous nation with his social justice drivel. He brought the Castro-style clinics to Venezuela and destroyed the country’s healthcare.  He disrupted the food production and supply. Now that the oil revenues are down due to collapsing oil prices, the country is really suffering. Foreign currency is in short supply, inflation was 64 percent in November, and imports caused shortages of toilet paper, detergent, and car batteries.

According to Andrew Rosati and Noris Soto, the food shortages are so serious that the food distribution was placed under military protection. Thousands of people lined up for blocks, trying to find chicken, toilet paper, and detergent. Price controls imposed by government will guarantee that the lines and shortages will continue. http://www.bloomberg.com/news/2015-01-09/venezuelans-throng-grocery-stores-on-military-protection-order.html

Americans have had their experience with price controls at Valley Forge, Pennsylvania, and it did not end so well. Washington’s army almost starved to death. Farmers sold their produce to the British for gold instead of feeding the continental army for a measly price that did not cover their costs and survival of their families.

Dealing with a serious economic crisis in a socialist manner, the Interior Minister, Carmen Melendez, sent “security forces to food stores and distribution centers to protect shoppers.” While stores after stores show empty shelves and security does not allow photographs, rationing forces citizens to fight over whatever is available for sale, jumping the line and starting fist fights, shoving, and hair pulling incidents. Bloomberg reports that one shopper looked for diapers for 15 days. “People are so desperate they’re sleeping in the lines,” a shopper was quoted.

Because President Nicolas Maduro promised to tweak by decree the government-controlled exchange rate system set at 6.3 bolivars per U.S. dollar, companies fear devaluation and are not sure if they’ll have enough resources to restock inventories or even find inputs needed.  Meanwhile the black market is booming with an exchange rate of 187 bolivars per dollar.

The country was in bad economic shape previously due to years of Chavez’s mismanagement of the economy but at least they had good oil revenues which accounted for 95 percent of Venezuela’s exports. With oil prices dropping so low in recent months, revenues from oil exports were cut drastically.

Wednesday, December 15, 2010

Green Salad in December?

I am staring at my beautiful ceramic bowl filled with a luscious chicken Cobb salad. The lettuce is crisp and fresh green, the cheese aromatic, the balsamic vinegar is divine, small strips of organic chicken, diced fresh tomatoes, bits of eggs, and the piece de resistance, real bacon.

The room is cozy and the fireplace radiates warmth from the dancing flames. There are smiling, glowing faces all around me. I let the moment sink in as I ponder where all this abundance comes from. It certainly is not from the government or my garden, but the hard work of so many people driven by their self-interest of the "evil" capitalist system. Here I am, an ordinary citizen, having a wonderful green, fresh, and colorful salad in December.

Could I have had this delicious treat that we take for granted every day in my former country, communist Romania? Not by a long shot. The ruling elite would be able to eat anything they wanted but not the "unwashed masses." We were relegated to dried beans, bones stripped of meat, or canned vegetables - if we were lucky.

Government bureaucrats told us how much we could and should buy on the market via five year plans that failed miserably to provide enough food, nutrition, and goods for the needs of the population. Central planning did not take into account demand and size of the population, it was based solely on perceived need and centralized supply, randomly and haphazardly determined by people who had no idea what they were doing, beyond the ideological rhetoric of communism.

There was never an abundance of anything. The best food was shipped to export for hard currency and the rejects were brought to the market to be divided unfairly between the large substrata of the population. Luck, barter, rationing coupons, black market prices, patience waiting in interminable lines were some of the variables determining whether you ate or not that day.

The hard currency bought industrial equipment and expertise, to develop an industry that had no chance of flourishing because factories were never run on a competitive model, they always lost money, and were bailed out by the government.

I wonder how liberals would feel if they had to do without their organic food, fresh food, or food in general? Would they change their "save the earth" tune or "capitalism is evil" tune if they were starving? Do they realize that abundance does not just happen, it is not willed or ordered by the government bureaucrats, it is the coming together of many self-interests driven by the lure of profit? We are successful because we work hard, knowing that in the end, we get to keep part of our hard-earned labor. We don't have to wait for the government to bring us what we need because, frankly, they cannot do so.

I thank farmers for growing my lettuce, tomatoes, chicken, pigs, grapes, dairy cows, and olive trees. All gave me the opportunity to buy this luscious salad today. Less than 3% of the population feeds the rest of us. It is an unsung profession but highly respectable and important to our survival. They work very hard to provide the fruits of their labor to the market with the lure of profit in mind. It is not evil, it is justly theirs for getting up very early every day during the growing season and going to bed very late at night during harvest. They are unsung heroes who give sustenance and blood to our way of life, the highly successful capitalist model.