Archive for August 14th, 2008

Clueless robolution of Hugo Chavez turns Sidor into a mess two months after nationalization

August 14, 2008

The Government nationalized Electricidad de Caracas and
CANTV in 2007 and in one year the two companies have seen their earnings and service
drop sharply, but at least, they still make a profit. It will not last long, but
so far they have not become a drain in the Government and by proxy on the
people of Venezuela.

In contrast, steel company Sidor, nationalized only a couple
of months ago, is apparently already facing problems under robolutionary
management and the
new Board of Directors asked today that the company
be declared in an
emergency and receive money from the Government.

That did not take very long to happen, didn´t it?

In fact, one reads what the Board is saying and the whole
thing is simply a farce. Sidor was nationalized by Chavez on a whim (What else
is new?) when Sidor’s Board would not agree on paying the steel workers a
monthly salary above that of a Full Professor at Venezuelan Universities.
Supposedly, this was unacceptable to Chavez, who had frozen the prices at which
the company could sell its products. So, he took it over, but has yet to pay
for it or even agree on a price.

Well, today, the robolutionary management team wants prices
to be increased, because the Government has held them down for too long, which affects the company. They are discovering basic economic principles really fast!!!

Funny, how these guys now defend price increases, now that
they are managing the company while siding with the Government earlier.

But to make matters worse, these guys not only want more
money from the Government, which had not put in a cent into the company for ten
years, but actually want money because they apparently have a business plan to
open hardware stores owned by Sidor which will bypass the middleman.

So, these guys are not only dangerous because they have no
clue as to what they are doing, but they even have a business plan that needs
resources. They are robolutionaries with initiative!A sure sign that the Government will drive Sidor into the ground
really fast.

Because the first thing the government did when it took over
Sidor was to put all of the workers under contract in the payroll, so that they
will get benefits as if they were regular workers.

So, as Chavez takes over more and more private sector
companies and they fall under robolutionary management, they are managed
inefficiently and incompetently and they add to the deficit, contribute  to inflation and use resources that
could have been used to reduce poverty, improve healthcare or so many other things
that the “owners” of the country, the people, truly and sometimes desperately need.

It’s all part of the clueless robolution, under the guidance
of Chief Economist Hugo Chavez.