Venezuela & Socialism

The new scary ‘thing’ now is socialism. Before today, the last socialism scare was Obamacare/ACA. Its been almost 10 years since ACA was passed, and Trump and the GOP are cheering about how well the economy is doing.

On the other hand we see a country like Venezuala, which is often equated and held as some sort of socialism standard. It is in terrible shape.

So, to what degree is “socialism” directly responsible for Venezuela’s woes?

I wonder how many people using this scare word actually know what socialism is and isn’t. I say very few.

It’s not.

Venezuela’s issues can be boiled down to two things; oil and a broken political system. Venezuela is dependent on oil exports. Up until the 1980s, while oil prices were high, the country did relatively well. When oil prices crashed in the 80s, so did Venezuela. It didn’t help that political infighting led to no clear path to recovery.

Venezuela eventually devalued their currency and inflation exploded, furthering economic collapse which was only worsened by a banking crisis.

By the 90s, over half the country was living in poverty and almost half were living in extreme poverty. As oil prices rose during Caldera and Chavez, both began instituting social programs to help fight poverty which did lower overall poverty to 25% and extreme poverty to less than 10%.

As all things are cyclical, oil prices again fell. Venezuela went back to where it was in the 1980s with hyperinflation, rising poverty and a dysfunctional political system.


It’s unfortunate but the power of personal greed usurps national generosity.

I hear you my friend but plan C was worse.

What else did they do with oil?

If you’re referring to the nationalization of the oil industry, PDVSA was founded in 1976. 43 years ago. When oil prices are high, PDVSA does well. When prices aren’t great, neither is PDVSA. Chavez decided to use oil profits for social programs, which as I’ve already said failed once oil prices went down. So again; oil and bad politics.

Do you mean Cruz?

Yes, but what else did Chavez do to PDVSA?

Turned it into a political tool by making a populist “commoner versus PDVSA” rallying cry. Following Chavez craziness and a workers strike, only presidential supporters are employed. It continues to be used as a political tool/propaganda That’s fascism, not socialism.

And ran off the professionals to put his cronies in there. PDVSA went to hell because of that, not the price of oil.

I thank him for it. Improved the hiring pool. :+1:

Not arguing he had a big part. The fall of oil prices during the 2007/2008 recession compounded things.

Here’s a good article.

I was there in '02 - '06 off and on. Mostly on. I know what happened. I have several ex PDVSA employees I help. Very talented.

By the way, have you seen what happened with the gun ban there?

I have not. I hope you’re not going to tell me gun bans = socialism. :grin:

Sure they do. The government owns the means of production of self defense. :wink::+1:

Nope…try again and using the letter “C”. Think about it.

Dictators and such use whatever is available to hold power. Doesn’t matter what it is. If some preversion of socialism or communism works then so be it. People like Mao and Stalin would’ve just as quickly used the Bible if it would’ve helped them reach their goal.

1 Like

Unbridled socialism always leads to poverty, hunger and oppression. Often leads to death camps as well. Unbridled socialism killed nearly 100 million people in the last century and enslaved billions more becasue it attracts power hungry psychopaths.

And the first thing they do is take away the people’s arms. So, protect the 2nd A.

No better vehicle for completer tyranny than a socialist model.

Except you have zeros examples of the bible being used as such.