My neighbour is a petroleum engineer from Venezuela. He works for one of the major oil producers here in town – great guy with a kind family. Recently, we were chatting and I couldn’t resist bringing up his homeland, which is now a socialist shit hole in chaos. The country is so broke that it is now rationing the use of blow dryers and sugar consumption…
It’s yet another failed, bankrupt socialist state on the verge of losing its sovereignty like Greece.
Why Socialism Collapsed Venezuela
You’ve all seen the headlines and know the recent history of the South American nation. It has broken into lawlessness after the Venezuelan economy completely collapsed during this oil bear market. It’s a sad scene frankly, and it didn’t have to be this way. When speaking with my neighbour I could see the embarrassment on his face – akin to being ashamed of your own child. He is angered and saddened by what has come of his country thanks to two decades of piss-poor socialist leadership.
You see, as a knee-jerk reaction to American corporations perhaps overstepping their boundaries in the 70s, and after the oil market tanked in the 80s (which was when Venezuela had the highest standard of living in Latin America), the citizens decided to experiment with socialism after decades of centrist governments by electing the late Hugo Chavez. There was a lot of anti-Americanism in Venezuela in the 90s; and according to my neighbour, Chavez seized the moment – right place right time. The people fell for his apparent patriotism.
For much of Chavez’s tenure oil prices were robust, which made up for his nationalization mistakes so common in every commie controlled-state. However, like so many socialist nations, Venezuela didn’t bother diversifying its economy by lowering corporate tax rates and enticing global entrepreneurs to open up shop there. Instead, it cranked up taxes on the wealthy and rode the oil coaster into the ground, which to this day comprises nearly 90% of the country’s exports. Now, with oil in its second year of depressed prices, chaos in Venezuela has set in. Energy is dwindling; food is scarce and violence is rampant. As Churchill famously stated, “Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.” Look no further than Venezuela for proof.
This video above was recently shot in Venezuela along a busy street in a metropolis. A truck full of chicken coops was surrounded, and then robbed by desperately hungry Venezuelans – everyday people taking part in a poultry heist. Desperate times over there… Folks, this is how socialism ends. Not pretty.
P.S. Don’t think this can’t happen in your country. In fact, you may already have socialists in your government. Subscribe to my newsletter below to learn how to protect your wealth in volatile times, and much more. Only my best content will land in your inbox.