Hello friends, with all this of the Coronavirus pandemic some have praised the measures taken by the government of my country Venezuela and some have criticized the measures taken by capitalist countries, and well I will take this as an example to explain why capitalism is superior to communism / socialism.
The great socioeconomic problem that this pandemic represents is worrisome since the main measure to avoid contagion is quarantine, everyone should stay at home, which results in the paralysis of production, thus putting thousands of companies and jobs at risk, therefore, governments as administrators of a country must take measures to avoid disaster.
For example, countries such as the United States, South Korea, Germany, and Canada are giving fiscal loans and economic stimuli from figures such as $ 1,200,000,000,000 to $ 7,100,000,000, and countries such as Venezuela, Mexico, and Cuba give $ 0 of stimulus and loan.
Among the measures taken by the Government of my country are: curfew from 5pm, closure of borders (good), mandatory use of face masks (being the recommendation that only the sick and staff who care for the sick use it) this measure is somewhat dangerous Since this generates a false state of security and people forget the most important thing that is handwashing, the most ridiculous and dangerous measure for the economy is the restriction of gasoline only to security, food and health personnel, but this is not Respect, I am health personnel and we are denied gasoline since gasoline is controlled by the military and they ignore the order to supply us with gasoline, this measure endangers the entire population, and they no longer offered any protection to the Business.
Why governments like the Venezuelan do not offer loans, credits and tax incentives? the answer is simple, they have no money or savings, and they do not have the credibility or repayment capacity to borrow from the international monetary fund.
Where do capitalist governments get the money for these fiscal stimuli? It is simple, from the taxes generated by the profits of companies and individuals that generate profits.
However, anti-capitalists suggest that the state can generate its own money under the intervention of industry and commerce, but it has been universally demonstrated that this does NOT work and not only that, but that the private sector generates the most for both them and for the state, in fact, the Venezuelan, Soviet and Chinese experiences have shown that the more the state intervenes, the economy fares worse.
What should be done with all that money that will be made available to society? How to administer it? Will it be easy to get out of this? This will be answered in the second part.