Venezuela Libre (foto tenor.com)
Probably no country in recent times has fallen as quickly into the abyss of economic collapse as Venezuela. Once a shining beacon of wealth in South America, the country is now in complete economic collapse. And with a currency so inflated, it takes stacks of money to buy a loaf of bread, millions have left in the last six years.
I saw you mentioned some of the issues in Venezuela on Rob Scholte Museum, specifically right here https://robscholtemuseum.nl/eric-zuesse-how-lies-become-facts-in-u-s-news/. I definitely agree with some of what you said and I wanted to send you an article we wrote on the topic as a possible addition to the page. The article is titled Venezuela and the Paradox of Plenty: A Cautionary Tale About Oil, Envy, and Demagogues. Here is the link.
Looking back at the history of Venezuela, it was one of the richest countries in the world in the 1950.s. Many communists held up the country as a beacon of what the ideology could build, but when president Carlos Andrés Pérez came into power in 1974, he ushered in an unprecedented era of government spending. The government began to choose all winners and losers in the markets and printed money at an astonishing rate.
The article goes into a lot more detail here and I would love it if you could add it to the post I mentioned above. Also, if you disagree with the piece, I would definitely like to hear your thoughts on it.
Hey again Rob,
I wanted to follow up here and give you a little more information on the collapse of Venezuela. While some conservatives would blame the collapse simply on socialism (that’s partly true) the reality is it was much more nuanced. In the 1980s, Venezuela was drunk on debt it could barely repay. And when the price of oil collapsed in 1983, this was the first domino that ultimately left the poorly governed country in complete turmoil.
To make matters worse, Chávez politicized Venezuela’s Central Bank and state owned oil companies, which were already under too much government influence. State owned PDVSA was used as a money spigot to finance Chávez’s social spending projects. The Venezuelan Central Bank cranked up the printing press and increased the money supply at astronomical rates. Consequently, hyperinflation is now a reality in Venezuela and is on par with Germany in 1923, the year of Hitler’s infamous Beer Hall Putsch that sought to capitalize on the Weimar Republic’s failed economic policies.
Let me know if you have any questions and I would love to see the article on your site!
Hi Rob – I hate to be “that guy” who keeps sending follow up emails so I’ll let this one be my last! I’d like to think that sending three emails is a fair compromise between being persistent and being annoying.
With that being said, please let me know what you think about the article on the collapse of Venezuela are if you get the chance.