THE SAD STORY OF VENEZUELA AND THE LESSONS FROM IT FOR US

Venezuela, once a very prosperous democracy and the gem of South America, ignored for decades the enormous gap between the very small wealthy class and everyone else. The result - Hugo Chavez and his Red Shirt Socialist Revolution.  Once in power, President Chavez began to unwittingly dismantle the economy, thinking he could simply place demands on business that were just not sustainable.  I know- my company in its heyday had a $1 billion business there.  But, you can't fight mother nature and equally you can't fight the laws of economics.  So, after a relatively short period of socialist euphoria, the laws of economics took over and now the poor people of Venezuela have nothing but empty promises and misery. 

THE LESSON FOR AMERICA IS THAT WE MUST ENSURE THAT THE FRUITS OF OUR WONDERFUL ECONOMY (DAMAGED BUT FAR FROM DESTROYED) ARE SHARED EQUITABLY.  IF WE DO NOT, AND THE RICH JUST KEEP GETTING RICHER WHILE THE POOR AND MIDDLE CLASS GET POORER, WE WILL FACE THE DAY OF POLITICAL RECONNING WITH LEADERSHIP THAT THINKS IT'S SIMPLY A ROBIN HOOD GAME OF TAKING FROM THE RICH AND GIVING TO THE POOR. ALL OF US RICH AND POOR WILL FIND OUR WONDERFUL ENGINE OF PROSPERITY (OUR ECONOMY) GONE.  THEN, IT WILL NOT MATTER WHO GETS WHAT SHARE OF THE ECONOMIC PIE.  THE PIE WILL BE TOO SMALL TO CARE.
PLEASE READ MY PAPER ON SHORT-TERMISM. See:  

Hungry Venezuelans Flee in Boats to Escape Economic Collapse - The New York Times