I live in Venezuela I can say that you are full of shit.
First, Kellogs like others have problems to exchange their profits into dollars due to currency restrictions and corruption.
Second, this is not just Kellogs, this happened to a lot of others companies so statistically, we can say that whats happening is not a market consequence, it's a socialism consequence.
Third, the plant was not taken by the people, it was taken by the corrupt government.
forth, if a company cannot sustain production or cannot make a profit you cannot by any means take their property, that's robbery and future investors will think twice to invest in this country.
would you be at ease if you know you can't even cut loses if things go south?
fifth, Kellogs is not responsible for shitheads voting for socialism and populists, people have to face the consequences of their choices.
sixth, they are now using Kelloggs trademarks and images in the packages, that's illegal and tells a lot about the kind of people running this country.
This is a needlessly confrontational post as I don't disagree with much of what you say here. I think some of my comments in this thread concur with what you have written above regarding the overall political situation. I think if you go through my comments in this thread you’ll see that I don’t see this seizure as a good sign for Venezuela (quite the opposite) and i'm totally on board with you that the government is a corrupt disaster, and Venezuelans deserve better. But that sentiment does not solve their current problem, and this problem will unfortunately be likely to exist on Monday morning too.
Focusing on this report, where Kellogg’s has already abandoned its property and staff and the country is in crisis; in my opinion, a factory being put to use is better than it being condemned and looted. This might be unethical to some, but I argue in this instance, with food shortages and record levels of poverty, it is a morally arguable outcome that doesn't even hurt Kelloggs that much. So while it is not a good thing, I believe this situation is the lesser of two evils. After Kellogg's wrote-off their Venezuelan holdings and abandoned 300 staff - Would you prefer the building remained empty, unused and eventually condemned? After all, as you correctly point out, re-investment is unlikely in the current political climate.
The fault for this current crisis lays firmly at the feet of government for mismanagement and corruption, but "market conditions" clearly encompasses political, economic and social issues - so your point about this being about "socialism" and not the "market" is a distinction without a difference. Anyone who chooses to operate a business in Venezuela must choose do so under a socialist government, and whatever that might look like in the future. As you say, Kellogg's is not responsible for how Venezuelans vote or for the governments are elected - it's typically a good thing that corporations (especially foreign owned ones) do not have responsibility over elections! Corporations adopt an assumed risk when they invest: change of government, fluctuations in economy, social problems, political instability etc... businesses take these risks, this is how capitalism is designed to operate by definition. It was their right to walk away... and they did "cut their losses"! The question now is whether or not there is a moral right to seize an abandoned food production facility to potentially save lives.
I do take issue with this:
"...shitheads voting for socialism and populists, people have to face the consequences of their choices", I personally wouldn't wish poverty and starvation on children, teenagers (who aren't old enough to vote) or anyone else just to punish them for how their parents/siblings/friends/neighbors may or may not have voted. That's where you and I may differ, I suppose. I'm also surprised that you seem to suggest the Venezuelan government is a result of legitimate democracy, as most will say the electoral system is rigged - and in which case, if the elections are rigged, then you are calling for your fellow citizens to be punished in a system that they
didn't vote for. How does this help Venezuela, Venezuelan citizens or even Kelloggs? It's needlessly bitter. By your definition, isn't this current situation EXACTLY the "
consequences of their choices"? failing businesses and government seizures? Did they choose this or not? seems you want it both ways. It's disgusting that you (and the people who liked your post) would essentially call for a famine against this entire "
shithead" political-class as some sort of deserved retribution.
I don't know about the infringement at this stage. I personally think they should just use generic packaging if that is the case, if they are producing food with trademarked branding then that is quite unnecessary (but I haven't seen this reported and i'm not seeking this information out).
I’ve already pointed out that the government have almost certainly killed any foreign investment interest permanently, given their track record seizing private property... this is no secret. If you think Venezuela would have been attracting big business BEFORE Kelloggs leaving, you are crazy. I also never suggested the Kelloggs plant was "taken by the people" and not by the government. Whether or not it was "taken for the people" is up for debate, but one I have no intention of participating in.
But thanks for your input, despite trying to put words in my mouth.
and lastly, people facing starvation and poor don't eat cereals, it's too much expensive, there is not cereal even inside the government's food boxes. there is other foods way cheaper and healthy that poor people rely on.
So this expropriation of property was only reckless populism.
This is a fully-staffed food production facility - they are not forced to manufacture corn flakes for all eternity.
Well... they voted them. The goverment represents the society.
Everyone believes that Venezuelan's are legitimately voting for Maburro now? (and should be punished severely for it too) My my, how people's opinions shift.
Insightful. Thanks from the perspective of someone who actually lives there, and not just spouting propaganda.
Propaganda tends to come
out of Venezuela (i.e. the government), not in to it. Though, I wouldn't call pointing out the human element of a story and not wishing poverty on people to be "spouting propaganda".
