Democracy ... is well-suited for determining what a majority of the voters in a polity want. It does very little, however, to ensure that what they want is the right thing, or even in their best interests.

"The people of Venezuela, not just the National Assembly, are giving this enabling power to the president of the republic," congresswoman Iris Varela told the crowd.

The law also allows Chávez to dictate unspecified measures to transform state institutions; overhaul banking, tax, insurance and financial regulations; decide on security and defense matters such as gun regulations and military organization; and adapt legislation to ensure "the equal distribution of wealth" as part of a new "social and economic model."

"What kind of a dictatorship is this?" [Vice President Jorge]Rodriguez asked the crowd, saying the law "only serves to sow democracy and peace."

"Dictatorship is what there used to be," Rodriguez said. "We want to impose the dictatorship of a true democracy."

Chávez supporters said the law will help align the government and economy for a swift move toward a more egalitarian society.

"That law is going to allow the president to accelerate the process so that government becomes more efficient," said Ruperta Garcia, 52, a university professor in the crowd.

Some said the law dangerously concentrates power in the hands of a single man. "If you have all the power, why do you need more power?" said Luis Gonzalez, a high school teacher in the plaza. He called the legislative session a "media show" intended to give legitimacy to a repugnant move. "We're headed toward a dictatorship, disguised as a democracy," he said.