Margaret Thatcher famously said that Socialism works until you run out of other people's money. Venezuela has run out of money. Period.
The speaker of Venezuela's opposition-controlled National Assembly said Wednesday the legislature cannot pay lawmakers or employees because the government has failed to allocate its budget.
Leading opposition figure Henry Ramos Allup told journalists the legislature has run out of money, the latest victim of the crisis gripping the recession-racked country.
"There's no money to pay salaries this month... because the government isn't sending us the funds," he said.
"Lawmakers and employees should know that if we can't issue their paychecks, they should go to the finance ministry and the presidential palace to collect their salaries," he added sarcastically.
But to get money, you have to pay to print money. Which you can't do when you have no money. Venezuela pays foreign companies to print its money. Inflation means that it needs more money that it can't afford. Or even pay for the money that it printed.
The first signs of the currency shortage date back to 2014 when the government began increasing shipments of bank notes as wallet-busting wads of cash were already needed for simple transactions. Venezuelans spend hours waiting in line for consumer staples, lining up first at banks and cash machines, often carrying the loot in backpacks and gym bags to pay for dinner out.
Further complicating matters is the sheer amount of bills needed for basic transactions. Venezuela’s largest bill, the 100-bolivar note, today barely pays for a loose cigarette at a street kiosk.
Despite repeated assurances, no new denominations have been ordered, pushing Venezuela into uncharted territory by its refusal to produce larger bills while not fully paying providers.
Last month, De La Rue, the world’s largest currency maker, sent a letter to the central bank complaining that it was owed $71 million and would inform its shareholders if the money were not forthcoming.
Maybe every American who likes Socialism should be forced to spend a week in Venezuela.