The common cry in right-wing circles to anyone who suggests anything resembling socialism is: “It failed in Venezuela.”
What failed in Venezuela was being a petro-economy, not diversifying the economy. Chavez spread money around, but was never able to get off oil.
When you combine that with US hostility, which included sanctions and robust support for opposition groups, along with the world system’s basic set up at this time (which is meant to make it impossible for countries to be able to meet their own needs), you have Venezuela’s downfall.
None of this is hard to predict. Back in 2004 or so, on the late BOP news, I wrote an article criticizing how Chavez was running the economy, very specifically on these exact points.
Socialism works when it is done correctly, just as capitalism does. Back in the 30s, if you were a capitalist, every time you tried to argue in it’s favor, I’m sure someone would say, “What about the Great Depression?”
It is also, again, hard to run a socialist economy in this world economy, because the world’s super power and most of the great powers will be hostile. If socialism is seen to work, after all, it could threaten the wealth and power of those who run capitalist countries.
I favor a mixed economy, with some role for the free market. But Venezuela’s problems prove nothing except that resource economies are vulnerable and that the world system and its super powers are hostile to socialists.
(See also: 7 Rules For Running A Left Wing Government.)
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