I was in Venezuela as it happened, I can tell you with 100% certainty that it was the communists.
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“We just didn’t get it right this time...all those people thinking and acting in their own interest..we need more power...”
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Very mysterious
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The CIA
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Government seized all major businesses and ran them to the ground. Some say this was by design, some say it was incompetence. Regardless, it brought forth economic collapse to us all.
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50-70: oil 70-15: OPEC, socialism, nationalization Now: sanctions, regime change
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It became too expensive and risky for investors to put money into the country after the government started nationalizing oil&gas plus mining projects. I remember it all started as rhetoric and no one believe it at the time. Then one day, it happened and valuations went to zero
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Bolton and then Abrams... Sanctions, coup attempt..
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All governments steal. Some more than others.
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Socialism is the ultimate solution. At the family level. It doesn't scale too well after that, as disincentives becomes too distorting.
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Its main problem is signal corruption. That makes it really inefficient at allocating resources , including human capital, creativity and initiative.
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Not to burst anyone's bubble but there is a high correlation here with oil price shocks...pic.twitter.com/0aI8id0AOK
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Is it really that shocking when throughout history socialism has been proved time and again it does not work?
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Something something about Socialism.....
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I think that unlike the oil-rich Nordic countries, Venezuela opted to centralize (steal) everything rather than re-invest petrodollars into its oil producing infrastructure.
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Socialism depresses private incentive to profit, and once the government's ability to extract money from the people runs dry, there is nothing left. Socialism is a dead-end road, no matter how fast you can go at the beginning.
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Socialism, being a strong centralized government system, is like those legacy status quo corporate dinosaurs that run slow and can't pivot to meet changing circumstances. Socialism has no agility. When oil went down, Venezuela couldn't adapt or innovate. Capitalism innovates.
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TL;DR — Socialism happened.
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