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The Left’s Capital Punishment

As Mexican President Andrés Manuel López Obrador and Colombian President Gustavo Petro seek to increase state control of the electricity sector to tame inflation, they should heed the lessons of Venezuela and South Africa. To avoid disaster, both countries will have to reverse course and regain investors’ trust.

CAMBRIDGE – In the traditional (and somewhat outdated) distinction between left and right, left-wing parties represent workers, while right-wing parties represent the owners of capital. When the left is in charge, according to this view, it tends to use its power to reduce the share of national income that goes to capital, either through raising corporate taxes or taxing personal capital gains.