Skip to main content

Foundation Private Wealth Management

  • Home
  • About us
    • Our Team
    • Dedicated to Excellence
    • Testimonials
  • Contact us
  • Solutions
    • Health Spending Account
    • Our Comprehensive Wealth Planning
    • Financial Planning Questionnaire
    • Insurance
  • FPWM Securities
    • Investment Management Process
    • Aligned Capital Partners Login
  • Resources 
    • Client Login
    • Commitment Safeguarding Your Wealth
  • Blog
  • Events

Mark's Musings- The Socialist Trojan Horse

    You are here

  1. Home
  2. Blogs
  3. Mark's Musings- The Socialist Trojan Horse

Mark's Musings- The Socialist Trojan Horse

Submitted by Foundation Private Wealth Management on July 24th, 2019

Around 2011, a representative from the Venezuelan Embassy gave a talk to my Rotary Club, the Rotary Club of West Ottawa, and it really stuck with me. During the presentation, she went through the aggressive socialist agenda of the Hugo Chavez government. This included many programs that would provide price controls, health care, and education for the Venezuelan people. I remember so vividly that each program had a fancy logo, slogan, and promotional material. It is customary at a Rotary meeting to try and remain apolitical, but inside I had one burning question, “How can you pay for all of this?”

These programs all seemed well-intentioned, particularly when the oil rich Venezuela put them into effect during the late 2000’s and early 2010’s, as oil hovered over $100 a barrel (see oil chart below). It may have even seemed realistic as oil stayed above $75 a barrel at the time of her presentation to our club. The reality, though, is that overspending on unfettered socialism to win the hearts of a populous is only as sustainable as the commodity that it is predicated on. Not only that, but it could be argued that it encourages low productivity in a population that has an illusion that everything is being taken care of for them.

As the age-old saying goes, “Beware of Greeks Bearing Gifts” and, in this case, these aggressive socialist programs, backed by unsustainably high oil prices, were the Trojan Horse that lead to the collapse of Venezuela’s economic system. Despite the plethora of fancy programs that were presented to me, the country is much worse off now (see graph below) than before these programs were introduced. According to the BBC, “But the socialist polices brought in which aimed to help the poor backfired. Take price controls, for example. They were introduced by President Chávez to make basic goods more affordable to the poor by capping the price of flour, cooking oil and toiletries.”[1]

I would caution that this could happen in any country to varying degrees and we should always question how programs of these sort will be financed, as this promotes a healthy discourse in a modern democracy.

- Mark 

[1] https://www.bbc.com/news/world-latin-america-36319877

 

 

 

Tags:
  • blogger
  • economic update
  • Trojan horse

Categories

  • 2013 budget (2)
  • 2016 federal budget (1)
  • 2018 Federal Budget (1)
  • 2019 federal budget (1)
  • blogger (5)
  • BRIC (1)
  • Canada (2)
  • canadian blogger (1)
  • canadian pension plan (1)
  • commodity prices (1)
  • coronavirus (1)
  • covid19 (1)
  • currency (1)
  • decluttering (1)
  • Economic Cycle (1)
  • economic outlook (1)
  • economic update (11)
  • economist quotes (1)
  • emerging markets (2)
  • estate planning (2)
  • EU (1)
  • eurozone (1)
  • finance blog (6)
  • finance blogger (4)
  • finance news (3)
  • financial health (1)
  • financial planning (15)
  • financial terms (1)
  • fitness (1)
  • global (1)
  • global GDP (1)
  • goals (1)
  • greece (1)
  • Health (1)
  • healthy life (1)
  • home buyers plan (1)
  • Hong Kong (1)
  • IMF (1)
  • insurance planning (2)
  • interest rates (1)
  • intergenerational wealth transfer (1)
  • Investments 2016 (1)
  • life insurance (6)
  • life plans (1)
  • market system (1)
  • markets (1)
  • mortgage insurance (1)
  • musings (1)
  • N11 (1)
  • oil prices (1)
  • ottawa insurance (1)
  • planning ahead (1)
  • RDSP (1)
  • Russia (1)
  • savers (1)
  • savings tips (1)
  • stock markets (1)
  • tax planning (2)
  • term insurance (1)
  • travel (1)
  • Trojan horse (1)
  • trump (1)
  • tsx (1)
  • twitter (1)
  • two sides (1)
  • universal life (2)
  • US and Canada (1)
  • US federal reserve (1)
  • US jobs data (1)
  • wellness (1)
  • whole life (1)
  • world news (4)

FPWM Securities is a trade name of Aligned Capital Partners Inc. (ACPI). FPWM Inc. is not the parent company of FPWM Securities or ACPI. 
Mark Sherboneau is an investment advisor and is also licensed for the sale of life insurance products. M.S. is registered through separate organizations for each purpose and as such, you may be dealing with more than one entity depending on the products purchased. M.S. will provide the name of the entity being represented when insurance business is conducted. The sale of insurance products is not the business of or under the supervision of ACPI, and ACPI will not be liable or responsible for such activities.
All non-securities related business conducted by M.S. is not in the capacity of an agent of ACPI and is not covered by the Canadian Investor Protection Fund (CIPF). Non-securities related business includes, without limitation, advising in or selling any type of insurance product, advising in or selling any type of mortgage service, estate and tax planning or tax return preparation. Accordingly, ACPI is not liable and/or responsible for any non-securities related business conducted by M.S. Such non-securities related business is the responsibility of M.S. alone. 
References in this website to third party goods or services should not be regarded as an endorsement of these goods or services. By accessing any of the links provided you will be leaving the FPWM Securities portion of the website. ACPI is not responsible for the information contained on these external websites. 
The information contained on this website is for general information purposes only and is the opinion of the owners and writers. This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. However, please call M.S. to discuss your particular circumstances. 
The information contained on this website is subject to change without notice.

© 2025 Foundation PWM. All rights reserved.

Website Design For Financial Services Professionals