Venezuela failed under socialism
Venezuela has the largest oil reserves in the world, larger than Saudi Arabia’s. They just can’t get it out of the ground because socialism has destroyed the pricing system and government overspending and debt has caused hyperinflation of their currency, causing it to be worthless. In 1975, the government implemented a massive welfare state to transfer wealth with the goal of “eliminating income inequality” and took control of Venezuela’s entire petroleum sector to finance the program by oil profits. Over time those living below the poverty line fell from 50.4% (1998) to 33.6% (2006), but by 2013 the government had grown out of control. Overspending, needless bureaucracy and unchecked borrowing resulted in mountains of debt, and their currency fell 30% against the dollar.
When oil prices fell, inflation rose to 26,000%. Crime soared, power was cut to four hours per day, and hyperinflation and currency controls now limit the importation of food and medicine. Seventy-five percent of Venezuelans have lost an average of 19 pounds. People are forced to eat garbage or hunt dogs, cats and pigeons to survive. Poverty has nearly doubled (from 48% in 2014 to 87% in 2017), and more than 500,000 people have fled the country.
A welfare state is simply “free stuff,” and there IS no such thing. Accepting “giveaways” gives a corrupt prone government unchecked power. After all, “the government giveth” so “the government can taketh away.” Don’t think it can’t happen here? Think again.