#133 South America Turns Socialist

#133 South America Turns Socialist   As South American countries turn Socialist, the US should prepare to bail them out just as President Clinton did in 1995.   Caring for our Neighbors  One of the bravest political economic decisions in American history does not get enough attention.  In 1995, President Bill Clinton was provided details of the upcoming default of the Mexican government.  They needed a $20 billion bail-out.  When President Clinton could not get Congress to act, he made the loan through Executive power.  He bravely, and without hesitation, clearly stated that the US would pay what was needed to stabilize his neighboring country.  The Mexican government repaid the loan early, with interest.  The Biblical command to “Love your neighbor” usually means your individual neighbor, but President Clinton showed it could also mean the country next door.  Here’s how President Clinton stated the case in his State of the Union speech, “If we want to secure American jobs, preserve American exports, safeguard America’s borders, then we must pass the stabilization program and help to put Mexico back on track.”  Actually, if you’re looking for self-interest – as economists often are – you’re welcome to notice that if President Clinton had NOT acted, there would have been 2-5 million hungry Mexicans at the southern border of his country.  At the time, that would have been considered a crisis.  During the Biden administration, it’s seen as a way to gain votes.  But in those years, America at least made an attempt to keep the law.  That bail-out will be news soon, as the US considers whether to bail-out numerous Central and South American countries who are traveling what that guy would call The Road to Serfdom.  It is happening at an astounding rate.    Who Colombia just elected Gustavo Petro: A leader who many fear will align the once-prosperous country with its Venezuelan neighbor.  Colombia joins Argentina, Chile, Peru, Mexico and some smaller countries that have elected Socialist-leaning leaders in the last four years whose policies will harm the poor in their countries.  Cuba is a Socialist disaster for the ages.  According to Thomas Sowell, “Forty years after Cuban refugees arrived in the United States, the total revenue of a few million Cuban American businesses was greater than the total revenue of the entire nation of Cuba.” Venezuela has found that “You can only vote Socialist once.”  They made their mistake, and it looks like they may never recover.  Marching right behind the worst economies in the region is Peru, who elected Pedro Castillo, a rural school teacher and union activist.  He won an election a year ago and has faced two impeachment votes, changed his prime minister four times and is facing a criminal investigation for corruption, an allegation that he denies.  Mexico is headed in the wrong direction, again.  Recently, their state-owned oil company,