What We Can Learn From Venezuela

This week, the wacky government of Venezuela banned Coke Zero from being sold in the country. Citing harmful ingredients, it claimed to be protecting the health of its citizens, while the government purports to conduct an investigation into potentially dangerous ingredients in the soft drink.

In reality, the move has nothing to do with the safety of Coke Zero, nor is the government’s concern genuine. In fact, in 2008, Coke removed an artificial sweetener, sodium cyclamate, from the drink. Sodium cyclamate is banned in the US, though it is legal in other countries. Venezuela’s Coke Zero, however, did not contain this sweetener.

Surprised at the lack of details justifying the ban coming out of the country’s health ministry? You shouldn’t be given Venezuela’s President’s propensity toward nationalization of homegrown companies and bullying of foreign companies. For example, Venezuela has nationalized 74 of its oil companies and is set to complete nationalization of these companies by the end of the year. More recently, the government strong-armed Coke into giving up a parking lot to the government.

While this episode is just another example of Chavez’s anti-American lunacy, in the midst of our discussions about the proper role of government as it relates to the private sector and health care, this example of a government on steroids should give us all pause. Venezuela is a prime example of what can happen when government overreaches, intrudes in to the private sector, takes over domestic companies, kicks around foreign companies and even bans products with no explanation whatsoever – all in the name of the greater good, out of disingenuous concern over citizens’ health.

When a government runs health care, as would surely happen in the U.S. given that government-run health care would ultimately drive private insurance companies into the ground, the line between running the government and running citizens’ lives becomes murky. Want to take a jab at a company by forcing it to pull a product? Easy, do what Venezuela did, claim the product threatens the health of consumers.

Public health care is not affordable, is not efficient and is not the answer to the health care problems our country faces. There have been many pieces on this issue here on the American Issues Project Blog.

Aside from cost issues however, there are also issues of control. And what we can learn from Venezuela’s actions this week, is that a government-run health industry will not only be the first step toward destroying the best health care system any society has even known, but it will also be the first step toward total government control.

*Originally published June 12, 2009 on the American Issues Project Blog, here.

Tags: business concerns, capitalism, Role of Government, Venezuela