Why Venezuela's Economy is so Terrible
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- Опубликовано: 16 июн 2024
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Venezuela was once the 4th richest nation on Earth. It now stands as the largest economic collapse of any nation in modern history. It has the largest proven oil reserves on the planet yet its citizens are now starving. In many ways Venezuela's Economy and Citizens act in reverse to traditional economic theory. So what happened? Why is Venezuela's Economy so Terrible?
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-Contents of this video-------------------------------
00:00 - The Strangest Economy on Earth
03:03 - Venezuela Strikes Oil
04:49 - The Dutch Disease
08:00 - The 4th Richest Nation on Earth
11:58 - Why Democracy Failed
12:54 - Too Much Money
15:19 - The Beginning of the End
18:38 - Hugo Chaves
19:46 - 21st Century Socialism
25:13 - The Worst Economic Collapse in History
-Sources used--------------------------------------------
- Crude Nation by Ral Gallegos
- Why Nation Fail by Daron Acemoglu and James A. Robinson
- Authoritarianism and the Rentier State - Venezuela and Nigeria Authoritarianism and the Rentier State - Venezuela and Nigeria
-Thomas, V. (2003). The economic history of Latin America since independence (2nd ed.). Cambridge, U.K.: Cambridge University Press.
- Colonialism in the land of Bolivar: An analysis of institutional persistence in Venezuela Stefan Martinez-Ruiz
- www.economist.com/finance-and...
- www.economist.com/the-economi...
#VenezuelaEconomy #Venezuela #LatinAmerica #Economics #SouthAmerica
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Because of sanctions. No 30 mimutes needee tobexplain
@@heroisdacrise2024 Your brain is too shallow
Your big lips, keeps distracting people from your narration......please move further away from the microphone....you're welcome.
@@dwood5252 ?
does the CIA not pay you enough already?
Basically Venezuela is like a person who wins the lottery and spends and spends thinking that the money is never gonna end until it does and now they're at rock bottom with no savings
Actually its more like being grounded by Uncle Sam and left to starve while Uncle Sam bribed child protection services that everything's fine
@@lamchunting856 bro, it isn't murica problem. Stop blaming usa in everything. It is just the fault of corrupt leaders
And no life
ruclips.net/video/v11I_rm_Ymo/видео.html
@@lamchunting856 Ah yes...Uncle Sam, blame him. Not the corrupt bastards who enriched themselves and invest/saved 0...
@@lamchunting856 dumb analogy my guy
As someone who has the disgrace of existing in venezuela, let me praise you for being spot on. Most people, even world-class economists usually don't make the slightest mention about capital controls created during the bolivarian regime which easily is the principal cause of this disaster.
Very clearly, Capital Controls combined with printing money as sport, and the destruction of the private sector were the key aspects in the destruction of Venezuela.
This documentary is very good in general principles but lacking in depth, unfortunately, as Latin Americans are aware of a vivid private sector in Venezuela before 2000. Industrial sectors who were the envy of South America. The focus on Dutch Disease minimizes this fact, alongside other complexities that had made the Venezuelan economy "robust" by Latin American Standards. And yet, only the Venezuelan economy killed itself.
There were key decisions made by Chavez and Maduro that made Venezuela not just "yet another corrupt Latin American country full of natural resources and corrupt elites" but the worst humanitarian disaster in the western hemishphere before Ukraine, with an economy now worse than Haiti (People in the US and Europe wouldn't know, the magnitude of this disaster has been sustained mostly by Latin American countries).
Venezuela was very rich in 2000 and could have remained in that path today. Reaching levels of development of Chile or Panama much faster. But socialism destroys countries. Chavez killed Venezuela (an economy that could have gone either way at that point).
I feel for the people of Venezuela...they are the victims of a corrupt government...when everything is government controlled, the people have no voice...and cannot create companies that would be far more profitable...I hope this changes soon...Viva el pueblo de Venezuela...que derroquen a los tiranos...
Her hmm rhegrgrgrgrgr he rehear grg regenerate Rhett
We’re hoping for better days to come
ruclips.net/video/v11I_rm_Ymo/видео.html
"As someone who has the disgrace of existing in Venezuela"
====> For some reason this comment tickled me
Well with the economy and stocks at where it is now, I'd be disappointed if people weren't making any error on their portfolio at this time, it was much easier to navigate during the bull-run, regardless I still see and read articles of people pulling over $225k by the weeks in trades, how come?
I noticed, a lot of folks are making huge 6figure killings in this downtrend, only just that such techniques are mostly successfully executed by folks with in-depth market knowledge.
@@marcelrobert9569 The US Stock market had been on it’s longest bull-run in history, so the mass hysteria and panic is relatable, considering we’re not accustomed to such troubled markets, but there are avenues lurking around if you know where to look, I’ve netted over $850k in the past 10months and it wasn't some rocket-science start. I applied , I just knew I needed a firm and reliable technique to navigate better in these times, so I hired a portfolio advisor.
@@charlotteflair1043 That's impressive, my portfolio have been tanking all year, tried learning new strategies to gain in the current market but all of that flew right over head, please would you mind recommending the init-adviser you're using?
That is chump change my friends, get into the future and the future is right now.
I make about 12 -14 million dollars a day from a $121 investment buying and selling NFTs.
Non-fungible tokens. It's the thing to do. What makes them so valuable is that you can't funge them.
Not even a bit, they will not funge.
$60,000 returns ???? I won't even get off my sofa for $60,0000 now that I'm making so much money
buying and selling NFTs !!!!
So a combination of corruption and bad economic practices is what made the country what it is today. Thank you for this, love your unbiased content
And sanctions from the US
@@jcstoHow so?
@@Hater_Ultima sanctions imposed by the US to the government and certain oil companies made very difficult for Venezuela to prosper economically. Combined with the low-key pressure that US applies to their allies to not negotiate freely with any of the countries they don't like, plus any country that's not aligned with US interests will get sanctioned or destabilized, specially if you pick socialism instead of capitalism, hence, USA interests
@@jcstoSee you're falling into the socialist trap. When you ask Venezuelans themselves, they will tell you the US had nothing to do with the collapse. Long before the sanctions, Venezuela's economy was already rock bottom Everyone, except socialists and leftists, know the US had nothing to do with the economic downturn and hyperinflation. Plus, the US has sanctions on many other countries but their economies are doing fine, because they also have trade with other nations like China and Russia. Sanctions are basically embargoes, it doewn't prevent countries from trade. If the US did have a hand in it, it's like 5% if not less.
Those are all symptoms of capitalism, the need for the most profit. Those short-term economic principles are capitalism, the corruption is capitalism.
Venezuela could've been like Japan, if only the politicians were better, they would use the oil money to invest heavily in education and incentives to entrepeneurs and inventors, this would create a lot of big companies that could diversify the economy, and then, when the oil prices dropped, they wouldn't feel it so heavily as they have. They became slaves to oil, and not used it to their own benefit.
The capitalism is the solution, what worth education, if there is not investment for the projects of educated people.
@@danielramirez8298 exactly
Also the many sanctions and laws us put in place to not let any country to give Venezuela any loans or machinery to keep the oil floating. If the USA didn't sanction Venezuela it would be a a lot different
@@danielramirez8298 Facts its almost like the world is much richer now thanks to a free market economy
The main issue is the constant sanctioning by the US, even in 2018 it had prohibited buying of Venezuelan debt or oil, crippling their economy heavily with the consideration that the oil industry is the biggest export (85%), what should've been done is diversification of the economy as well as modernisation of economic engines. The sanctions have alongside crashing oil prices from increased supply kicked down the state
As a Venezuelan myself, I can say that this is the most accurate video in English I’ve seen about my country’s economic reality during the XX and XXI Centuries. Thank you so much for showing our reality. Sadly, the World doesn’t understand the roots of our problems and always biased people prefer to say that it was the US the responsible of our failures, but NO!!! It wasn’t the US, We the Venezuelans are the only responsible of our failures but I have hopes that after this crisis, the new generations will finally do it better, forgetting oil and taking advantage of tourism because beside floating on oil, Venezuela was blessed with natural landscapes that are among the bests and most beautiful in the World.
👏👏good luck, i wish you and your people all the best to create a competent government which puts the wellbeing of its citizens first
The "US is the problem" never made any sense. It doesn't explain why Venezuela went from one of the most prosperous economies in the Western Hemisphere (very capitalist) to one of the worst. Unfortunately Venezuela is a great example of why it's bad for a country to rely on one source of resource to sustain an economy. I don't disagree with the assessment in the video that Venezuela is one of the strangest economies on earth.
Venezuela is dependent on one source for economic prosperity. It was always going to be governed by world pressures and things outside of it's control.
Venezuela is absolutely one of the most beautiful places I have ever been. I hope you guys can turn things around.
“It was always going to be controlled by world pressures” such as American embargos/blockades ? 🤨
You do know you don’t employ millions of people in only 1 industry ? Oil or tourism
As an 80’s born Venezuelan myself I lived through many of the things you mentioned in there. Very accurate video… everyone who took power in Venezuela basically got greedy beyond belief!
Chavez expropriated many business and sectors of the country to impose his own version of how it would be and in that process even destroyed what was left of our agriculture.
We rapidly became a rich country that could not even produce its owns vegetables!
We started having electricity and water service shortages (sometimes spent 2 months at at time without water) and power outages were a daily occurrence Why? Because as you mentioned, Chavez fired the people working in those companies to impose his loyalists who most of the time had no clue of what they were doing and could not run those companies correctly, instead they started taking and deviating money for the maintenance and running of those companies into their own pockets and Chavez government became even more corrupt than any other government we ever had!
Those are my memories of it! I fled like many others because life became unattainable.
The resource curse at its "finest" or like how people went nuts over easy money in 2005 and 2006 with no safety net as if a crisis the next year couldn't happen...
As an 80’s born Venezuelan myself i say you are not 80’s born Venezuelan
@Dgarays
The first duty of any elected government is to feed the people in the country.
One correction. Venezuela isn't the poorest country in Western hemisphere. That distinction falls to Haiti.
That's what I thought as well when he said that.
Haiti. the country that France EXTORTED $21 Billion from under threat of military attack.
Venezuela is an example of why giving everyone fish is not good in the long-term. Teaching people how to fish is the better long-term solution.
The oil wealth should have been used to diversify their economy.
giving everyone fish is good tho it’s jus Venezuela’s fault for relying on oil
@@Proxyyy825 No. Giving everyone fish does not encourage local growth. Every country ( or person) needs to a have basic level of self-sufficiency. Many of the Gulf States are rich and providing for their citizens. But they are also having to import many things, even workers. And not just, basic larbourers. Eventually the oil money will decrease. And then they will have a population that never learned to take care of themselves.
In my own life, I will willing to provide for the college education for my goddaughter. But once she graduates I am expecting her take care of herself. I am willing to help her in tough times. But she already knows not to expect to live off my help forever.
@@answerman9933 the fish should be a basic right there’s many things that should be free and a basic right
like also College
I left Venezuela 28 years ago. I left a great country with many opportunities. Now is a mess. Thank you, I think it is the best analysis of the contemporary Venezuelan history. We had the opportunity to have the best country on earth, yet we mess it up. Every Venezuelan has his or her quote of fault. I lost hope.
I feel you Arquinmedes. Opportunities that are repeatedly extended and within reach, yet time and time again
ppl allow, take and sometimes Even Demand The Easy Route. Later when the easy route leads to despair, it's
always another person/countries fault! I see it everyday we my black community leaders develops, creates
reasons and ways to not take responsibility for community crimes! So easy to say, "they". A microcosm of Latin
American countries today! No personal responsibility! And when challenged, you're Shouted Down! So Sad!!!
Venzuela only needs to respect Private Property, respect Free Markets, institute a Democratic Republic, and maintain a Sound Currency. They could lift theirselves out of poverty in less than 3 or 4 years if they did this. But... they probably never will, cuz that would mean less power and money for the King. 😥
@@keith6032 remember that the stupidity of most of venezuelan people elected Chavez as president. So don't blame the supposed 'king'.
Thank you for your honest comment.
@@keith6032 What is you smoking brah? Did you not hear about crippling economic sanctions that USA has placed on Venezuela.
Once USA lifts these sanctions finally THAN Venezuela can prosper.
OUTSTANDING video, congratulations
Great info, thank you.
I seen a couple videos about Venezuela but you're the only that went back further than just the Chavez Era and shown that this has been an issue as well for decades before Chavez
Still, you cannot deny that Chavez did everything way way worse than it was before him.
Yet Chávez stole way more than the ones who came before him, the goverments after Marcos Pérez Jiménez were shit (since they were socialists like Chávez) but nothing nearly as bad as Chávez
Chavez is responsible for 80 percent of its Demise
@@kiljaeden5405 Exactly 🤝
Because of sanctions. No 30 mimutes needee tobexplain
Hi, as a side note, the neighbor Colombia, a country with way fewer reserves, has actually more oil output than Venezuela now.
yea but reason Colombia isn’t screwed like Venezuela is because it doesn’t rely mainly only on oil for its economy Colombia has also agriculture, huge flower producer, huge coffee producer, huge coco producer etc
Hurts my brain to think about
Because of sanctions. No 30 mimutes needee tobexplain
@@heroisdacrise2024 becaus off sanktions. Mo meede 30 nimutes toExplaane
Columbia is part of US/NATO! How hard is that to understand.
Wow! Very interesting! I learned lots of things that I didn't know.
Learning about foreign politics has always been beyond my purview and never really interested me. But, whenever someone said "Oh Venezuela died because of Socialism" like that was the one and only reason, I knew that there had to be more to it than just that.
Thanks for being so thorough
when it was doing well socialist said it was because of Socialism!
It's not a simple argument. It's entirely true. Every country has problems. Problems are part of life. But you don't see such a RADICAL swing in a nation's misfortunes without one thing, GROSSLY OVERPOWERED GOVERNMENT! Which in most cases, is "Socialist". Socialism is a nice word that tyrants use to sell tyranny to people who are ignorant of how destructive it has been for dozens of nations and billions of people.
That’s the one and only reason, all the other reasons are aspects of socialism.
Yep, and now, because Socialism has so thoroughly wrecked their own country, Venezuela is about to militarily invade and subjugate Guyana, to steal their oil to continue propping up this Communist regime. This should surprise no learned person. @@robfromvan
With a strong currency, if they had an highly educated population, they could have evolved into an economy based on high-value-added industries (that import cheap products, tranform them and sell the final product), and atracting the brightest people from all around the world?
I would also create a regulatory system that would atract financial services and created a national sovereign fund.
South america was blessed with lots of resources, but cursed with a very corrupt system, with a broken social escalator, partially due to their 17th century Iberian systems that they didnt ( nor wanted to ) evolve, even after their independence, since it benefited the governing elites, beeing them more or less democratic, more or less socialist, more or less corrupt.
The country was bad for government intervention Blame, in latin america overrall the people always have hated capitalism, because there are many communist propaganda and anti USA propaganda, that say that USA enslaves us, and steal our resources, and treat us as citizens of second class, but the only blame in on us and our government i am Venezuelan, and if you see the history of my country we were a very poor country where we killed each other, we thrive thanks to US oil companies, and we were the fourth riches countries in the world, thanks to capitalis, also there were venezuelans oils private companies emerging as Mito Juan, but all ended with the petroleum nationalization that was the worst thing that happened us. The people think that a nationalization the People will have equality and thriving and there is only corruption and mismanagement.
@@danielramirez8298 everywhere communism gets popular, dicatorships and poverty follows. every. single. time.
there's a reason for this. because communism to economics is like flat earth theory to physics.
@@danielramirez8298 and the popular sentiment for communism ALWAYS is rooted in sowing division and envy by insisting that people see things through group identity lens.
"steal our resources". no. it's called purchasing. just set your prices accordingly.
@@danielramirez8298 lack of education and communism have a great relationship.
lack of education allows communism to take hold, since people can't see communism's economic and historical flaws.
then once communism takes hold, it is so obsessed with holding onto power, builds a corruption and lie based economy, which all then prevents education.
@@gwho If anything this video shows is the opposite of what you claim. The economic system didn't matter because the problem was already there. The Dutch disease generated boom burst cycles before Chavez and was independent of having a communist system or not.
As a Singaporean I always loathe the fact that I am born in a country with absolutely no natural resources to speak of. This video really serves as a strong reminder that, having natural resources but not knowing how to use it properly is actually worse.
You had a leader who killed 25% of its population, in Venezuela has to pass the same, drugtrafickings smugglers, gangs etc.
@@danielramirez8298 that's terrible...
Venezuela was making big money at a wrong time in the 70s. They couldn't spend properly on high tech infrastructure. They instead obsessed with military which had no investment value unless they do something to their neighbors.
@@keithng5249 always curious what will happen with Singapore and other city state type places like HK or Macao since y’all have no housing left and the population keeps going up. Looks crowded 😩
@@cjthompson420 HK and Macao are essentially China so no worries about them.
For us, we meticulously plan our population growth and manage our immigration policies to achieve the population we need.
Right now our natural growth rate is declining rapidly and we need maybe 20~40k new residents each year to just sustain the current level.
We also plan our infrastructure ahead and continuously make land reclamation (20% of our current land area were reclaimed from the sea).
Out of our population of 5.6 million now, 2 million are just foreign workers and we have strict laws to prevent them from assimilating into our population (they cannot be pregnant or buy properties etc).
Lastly, we have a strict policy against asylum seekers and refugees etc, with reasons well explained right from the start.
Excellent video
Great job
Great content bro
The main problem seems to be the consequence of letting all the economy depend on the crude oil exports. If a good amount of the excess wealth was instead being invested on making the country productive in many other sectors, perhaps things would had been different.
Being able to be self sufficient is the key to get by at the harder times.
Of course the inept government and corruption did not help things
No its socialism, Every country in the Arabian peninsula rely on oil and will all be bankrupt without it and they are all doing wel
Looks like present government should take a lesson,ya spend more than ya make ya end up broke!🤷♂️🤦♂️😫
@@adventurefaps9571 Sanctions are one of the most evil actions a country can do without going to war. It is basically holding the welfare of the citizens of a country hostage
The economy was not going to prosper relative to foreign economies. That's WHY the oil isn't helping. There's no way to own any imports.
It's very easy to miss what happened through the pro-US propaganda on this channel.
Consider what would've happened if the US had pinned the Bolivar to the dollar - and not visa-versa. This would've accomplished Chavez' goal of trying to stabilize the currency because they (the US) would've helped support it rather than syphon off wealth.
Yes, my country used to be famous for coffee and cocoa beans, but ever since oil became the big thing, everyone moved from rural regions to the cities, thus making oil the main source of wealth in the country
You forgot to mention the fact that the economy is de facto Dollarized now and that gas and public services subsidies have been slowly disappearing. I think we are now finally understanding how hard we have to work for every dollar. I’m a Venezuelan that lives in Venezuela, lucky enough to be part of the small, self made GEN Z middle class that made its way thanks to freelancing and tech related jobs. This country lived in a mirage, and now it’s my generation which is paying the price, quite literally.
a que te dedicas?
Because of sanctions. No 30 mimutes needee tobexplain
@@heroisdacrise2024 Your brain is too shallow
The country is more stable now but it makes no sense to have such a disastrous country with so many opportunities.
Could you tell us what you do for work? Just curious as a business owner/entrepreneur :)
The best video that's delated explains the situation in Venezuela so far!
Excellent. Thank you.
A lot of the things said here, about the economy I mean, are also true for Greece. Instead of oil money, we had EU funds.
I'm Venezuelan. This is exactly what happened to my country. It's the best summary video I've ever seen on it, and I really appreciate you doing it. I hope it serves as an example of how a country should not be managed, and that easy things have a high price.
Oh, you just like it because you heard what you wanted to hear.
@@JSB103 well there's always someone wanting to hear otherwise. Would you please do the honour?
@@AA-sn9lz, since you've asked to hear otherwise, I'm going to _cut and paste_ what I have already posted in this thread about a month ago, alright? This doesn't go into the _"unilateral coercive measures"_ (economic sanctions) and all the rest of the flak Venezuela has had to endure since the days of Obama and which have caused the country incalculable damage in every possible way. Enjoy:
_"Through most of the 20th Century, Venezuela lived on its oil. What little industrialization it had, was mostly assembly industry with little to none locally generated improvements of any kind. When anything broke, it was bought anew. Venezuelans JUST LOVED to throw money at any problem over a bottle of scotch or two._
_Through all that time little to nothing was done to actually move the country out of being a second rate service economy (much like the U.S. is today). Back in the day, foreign oil companies were actually doing all the heavy lifting where maintaining the industry was concerned._
_When Chávez came to power, the oil Industry was already in trouble because International crude prices were at their lowest levels ever and Chavez's in your face left leanings didn't earn him (or Venezuela) any friends or favors in Washington._
_It should be noted that corruption has been a staple tendency in the country especially in the period after the ouster of dictator Marcos Pérez Jimenez on January 23rd. 1958, and it's still rampant today._
_Improvements in the Venezuelan economy are possible but it's unlikely that this generation of Venezuelans will enjoy the prosperity past generations enjoyed. Yes, and the finger-pointing blame games we see all across all the (anti)social media aren't going to help things either. ALL VENEZUELANS are and have always been an active part of the same crazy dynamic."_
Interesting video. Time for a "French Revolution" in the country and let the people take over.
@@JSB103 Sanctions are the excuse from the people who drove the economy into the ground. The Chinese and Russians never cared about "sanctions", yet your "great leader" couldn't get them to provide more things from the excessive debt to them. Like this video correctly explained, you overspend when you were supposed to be saving, that's the pure truth. By the time "sanctions" occurred, there was no difference since we were already into years of scarcity thanks to Maduro's "fair price" law, and only when Maduro finally removed the "illegal exchanging" law and the "fair price" law, did the nearly destroyed economy took a little breath, Then your genius politicians added another absurd tax to destroy it again. The only reason Venezuela is destroyed has a name: Socialism, specifically: "central planned" socialist economy; it never worked and it never will. But Maduro and books don't get along which is why he and Chavez repeated all the mistakes of humanity and produced the exact same results. No need for sanctions, just decree the price of things and watch the best of economies crumble. It doesn't work and its your sole fault.
Great video!!!
Thank you!!
This is one of the best videos that summarizes why Venezuela is and works as it does. Excellent content!
Could be worthwhile to compare/contrast with Trinidad and Tobago, just off the coast of Venezuela and tapping into the same formations, but which handled their oil wealth much better.
Trinidad and Tobago are Venezuela proper. The Venezuelian gov. Has never gotten around to taking it back because the Anglos always interfere in the affairs of other countries.
@@vizsla8579 Venezuela couldn't even managed their own economy as it is, and you have dream to annex Trinidad and Tobago? Lol
Lol 😂
As a Trinbagonian, we have alot of issues that are similiar to Venezuela however one thing is definitely sure, we handled the oil that we had very well. Venezuelan nationals are now risking their lives to come to our country where as it used to be the opposite a few decades ago. I too hope that the vid suggestion goes through.
@@vizsla8579 umm Venezuela is a settler colonial state. Like the land was built on stolen indigenous land. Venezuela is far from being a victim.
Honestly, amazing and unbiased research work. As a Venezuelan who studied Finance, I can say that this video is a great summary, it explains the macroeconomic forces involved and the major causes to our sad downfall and unfortunate situation. 👍🏼
What about the macroeconomic force of the world's largest economy sanctioning the country?
Somehow the US involvement in the Chavez attempted coupe was left out. Same with outside influences to keep Venezuela a failed state.
All the people who replied on your comment either did not see the vid, or did not understand it.
unbiased LOL
@@1marcelo problem?
Excellent analysis and content, I am from Venezuela, and would like to get a torch with the creator about making a Spanish version mama I can’t help myself as I had done some voice over and used to do translations also
I can collaborate for free .
Nice to hear! Are you still living in Venezuela.
It's a common theme on countries with one strategic resource. Over rely on a strategic resource give some early advantage, but it also become your weakness when strategic resource no longer sufficient for your economy. Then, if you have nothing else to fall back, you are left in a dead end on your growth.
As a 90’s born Venezuelan, this video was fascinating! As i grew up in Australia I never got to learn about Venezuela’s economic history, I always wondered as a child visiting my family why things were so shit compared to Australia 😂😩
Australi also lives of natural resources, but hasn't socialism, and has the anglosaxon culture, meanwhile in venezuela we have the hispanic or spanish culture.
Dude, what the fuck are talking about ??? You are a rich white boy living in Australia...
Go ask, to the real Australians, the Aborigines what they think about white people invading, genociding, stealing their land and resources... and deprived them from wealth !!! Australia is not a perfect country !!! Only in a white boy mind !
The truth is that white people hate the fact that Chavez and Maduro took Venezuela wealth and give it to the people, not to the white elite class like in Brazil, Colulmbia, Mexico, AemriKKKa, south africa, australia... Venezuela was not a paradise for all its people... only for the white racist ruling class !
@@danielramirez8298 socialism isn’t spanish
@@introducenombreyapellidos.2675 He doesn't mean that socialism is Spanish. He means that you have intense socialism, which is really just a clique of elites with red stars on their uniforms hoarding everything for themselves, but pretending to care about 'the people'. And in addition to that, he's pointing out that the Anglo-Saxon social-political arrangements, which were hammered out largely during the English Civil War, and were further democratized and codified during the American Revolution by the founding fathers of the United States, make monopolies way less acceptable to Anglo-Saxons than they seem to be for Hispanic societies.
@@adventurefaps9571 that’s just leftist victim nonsense.
This fills in so many gaps for me. I married a Venezuelan in 2009 and absorbed the situation as it had developed since Chavez over the prior decade. This video wrapped up so many loose ends for me. High praise from this viewer.
Hope that marriage still goin strong.
fun fact, the refinerys in houston are the only ones in the world that have the equipment to extract the extremely high sulfur content from the oil
So much of this kept reminding me that the federal government is the largest employer in the U.S...
Excellent point
22:05 They got a second chance, its so hard to have sympathy for the country when they had it all, hit rock bottom, and miraculously came back only to make the same mistakes again.
Socialism is a hell of a drug
Because of sanctions. No 30 mimutes needee tobexplain
@@sergiocazzaro4571
Indeed.
@@heroisdacrise2024 this same guy made a video on why Latin America is still poor and didn’t mention CIA coups and other American “involvement” so he has an obvious slant to his videos.
@@sergiocazzaro4571 Did you even watch the video? The problems of Venezuela existed way before Chavez
Another great video from you. Very interesting and informative explanation on Venezuela. Keep up the good work👍 also wow I remember when you were at 50 subscribers and now you are at 43k congratulations.
Thank you so much! I'm incredibly grateful for you continuing to be a supporter of this channel! It meant the world at 50 sub and even more so now at 43K :)
@@CasualScholar i really hopr your channel blows up soon! you are in one line with others like economics explained or caspian report in my humble opinion. thanks for the effort!
Because of sanctions. No 30 mimutes needee tobexplain
@@heroisdacrise2024 venezuelas economy went down long before the sanctions tho
@@Marvin-ii7bh that is a plain lie, until chaves second tetm the country thrived and was gradually destroyed
Excellent 👍👍👌👌👌
Some information was withheld in the video, and you didn't mention the whole chapter under Maduro's regime. Nevertheless, a good video.
This channel is only 7 months old! You're doing something right 👍. Keep going man.
Another great and educational video. Keep up the good work!
My dad lived in venezuela for a few years when he was a kid because my grandfather worked for an oil company there. He said it was pretty nice at first but it went downhill really fast
That Maersk ad plugin though
I can't believe this channel is this new and already making so much great content...
The really sad part is that it would probably be relatively easy to bring Venezuela on the right track from an economic point of view.
But the measures necessary would most probably endanger the security of the government in charge.
Venezuela has experienced an oil dependency for an extended part of their history, but in the recent years, their focus has shifted over to gold.[ In the Orinoco Mining Arc and other areas Venezuela has the 2nd highest gold reserves in the world. Sadly many people suffer and struggle to get food and basic services.
Just found this channel. Loving it so far. Keep it up💪
The first RUclips video to successfully explain the current crisis in Venezuela
Thank you!!
@@CasualScholar I agree as Venezuelan. I didn't quite like the use of the random unrelated footage (we don't have trains) but the narrated content was good.
That was good. I enjoyed.
17:50 that bridge is in Chattanooga TN
It's like this country wanted to fail, it's like they put in extra effort to fail. This is by far the most inclusive doc I've ever seen on the matter kudos!!
They are still working on failing as we speak
The most important remark of this video is that the demise of the Venezuelan economy has nothing to do with capitalism or communism but the incapacity of multiple governments of addressing the Dutch disease.
Its almost like having a bad administration is the real problem, not how you perceive the world
Venezuela is very bad for goverment intervention if you see the history of the country all its progress thanks to capitalism, investment of foreign oil companies, even the country its economy has been diversified in 1990 when government privatized the steel state owned company (Sidor) and a private company who bought it, multiply the production literaly per 10 since 400 thousands tons of steel until 4,7 millions tons of steel, the petroleum for first time wasn't 90% of our exports, was the 50% and the other half steel but this ended when chavez nationalized SIDOR again in 2006, now not producer nor 1 ton of steel.
Well actually when the country was in the hands of nationalists (Juan Vicente Gómez, Eleazar López Contreras, Isaias Medina Angarita and Marcos Perez Jimenez) we where on the good path, but unfortunately the economic elite to maintain their monopoly they organized the state coup against Marcos Perez Jimenez and they made the socialist “partydocracy” which lesd to socialdemocrats and socialists on power and stealing money since 1960-nowdays, and things got worse when Chávez and the PSUV (conformed by the extremist parts of the socialists parties) took power, the steal was unpresedented
They implemented socialist principles
Yes, true. Socialist policies have never anything to do with socialism. And it isn't as if they handled way better the "dutch disease" before the socialists came into power. Wait...What ?
I was born in Caracas and moved to the US in 1994 when I was 4. I am not very venezuelan and I barely speak Spanish but it still is my roots so I've always had interest in this. Sometimes I wish I was more venezuelan. This video was great in helping me understand what happened and how and why I came to grow up in the US. I wish Venezuela would get fixed so I could visit and take my wife and kids to visit and visit my family as well.
Tell those people who claim that it was all the US' fault a very kind and warm "El recontra coñísimo de tu madre" from me, a fellow venezuelan, please.
Greetings and blessings for you and your family, brother.
P.S.: as long as you appreciate us and get involved with our people, you're as much of a venezuelan as me or as any other. Don't let anyone make you think otherwise.
needs stronger currency; could use higher interest rates for government borrowing to stop inflation, while lowering interest rates for mortgage and consumer borrowing to stimulate markets and economy
You pointed out a very important point: the government must be accountable to its people! Accountability must be fiscal, election isn't enough. The reason a government needs to drive and guide an economy to be successful, is because it is in principle accountable to its people. If that accountability breaks, or if economy is guided by other parties (also not accountable to majority) economy breaks down! Thanks for the video
The terrifying thing for me is that am Trinidadian and our economy is very similar to Venezuela. A lot of the country's economy is based on oil and petrochemicals exports. While our economy is some diversified with our products of fertilizers all further diversification was halted by intense government corruption. We don't produce any goods of our own and a lot is imported. Good video tho lol
I think you guys do ok. I'm Jamaican and I know we import tons of products from T&T .
Because of sanctions. No 30 mimutes needee tobexplain
T&T's economy is not like Venezuela's at all, we produce oil but that is really where the similarities stop. If you listened to the video you would have heard that there are some historical issues that laid the groundwork for the current situation Venezuela finds itself in and those issues are particular to them. Trinidad and Tobago's economy does not work the same and although I understand those who draw some parallels between the two, there are very big fundamental differences that make the comparison inaccurate.
Nah, y’all Trini’s are just thirsty for some world recognition that y’all bring your country up regardless what.
@@proro1974 their economy stagnated in 2009/2010 & hasn't really grown since
this is eye opening i realize that i know nothing about economy at all
One feature of a resource-based economy that makes it prone to corruption is that the facilities devoted to extraction are easy to seize, and as long as the production staff is left in place and not screwed over too badly, there is no near-term drop in production. Politics then becomes a race to whoever can promise the most to the populace with the seized wealth.
As someone who has done extensive research on the subject I can say it’s a damn well made video
Thank you :)
That’s true
ruclips.net/video/v11I_rm_Ymo/видео.html
Because of sanctions. No 30 mimutes needee tobexplain
@@CasualScholar this video is disgusting... Why not mention anything on "economic sanctions" when you do video on Venezuela... That's why I say DISGUSTING!
Did you research the crippling economic sanctions which this video ignores?
Excellent video. It'd be amazing to explain the strange phenomenon that's happened after the de facto dollarization of the economy.
Could you also discuss the effects that the sanctions imposed by the US (and automatically the rest of the world) had on the economy?
That last line was reserved for me 💀26:04
Excellent video, this covers the Venezuelan economic zeitgeist very well. Good job!
Venezuela's economy reminds me of Nigeria's economy...
So oil dependent and thus so inefficient,they have so many other alternative industries to invest in to subsidize oils failing returns..but the status quo has existedfor so long that no one really wants to make changing it their problem
Hmm not really, oil contributes 10 percent to Nigeria’s gdp but Venezuela was a different story. Nigeria just need a diversified revenue source.
@@TheStickman419 yh many people think Nigeria is oil dependent but no. Nigeria have a revenue generation problem coupled with unstoppable population growth that weighs down the infrastructure. Nigeria depend on oil for revenue generation not gdp.
Here is a link on Wikipedia
en.m.wikipedia.org/wiki/Economy_of_Nigeria
@UCmzLLdyEAJtEEeMc3MlNwOA I am Nigerian too and Nigeria is not oil dependent for its economy just revenue generation. And because Nigeria have been having problems generating revenue since 2015 that is why poverty have increased significantly. Nigeria need to diversify it export base but it actually gdp is diversified away from oil.
@@jaybee4577 Nigeria is an export based economy man, almost 85% of our exports is oil ....
Why do you think our currency seems to fall with oil prices...
The day Nigeria moves away from oil I will be very very very happy.... cause it will do so much...
But it hasn't happened, and there Dosent seem to actually be an end in sight
I was married to a Venezuelan lady I was there twice the people are the most nicest people you will meet their country is stunningly beautiful there is so much potential for the country it could literally be paradise,from what I've seen with my own eyes and what I've heard the government the military the corruption the reliance on oil snd the catastrophic economic desicions have all have led to its dereliction ,I will always have a place in my heart for Venezuela and it's people and wish them all the best in the future
Interesting 😮
I'm really glad that more people are paying attention to the genius that is "Why Nations Fail".
States get rich or poor from economic and political institutions.
Society is really institutional when you think about it. Individual people change jobs, get laid off, or pass away but the institutions they build and participate in are what remains to define the "society."
I lived there from 96-98. The people and culture and landscape are wonderful. The government and politics, however, are so corrupt. It’s a shame to see the people suffer.
Really? ALL the people? I have a great friend from Caracas who tells me many stories about lawlessness and kidnappings (fastnappings) before the current head of the banana crime family took over.
@@jonathanchester5916 “the people” in general. Just trying to live life. Not “ALL the people”. There were parts of Petare (Caracas) that the police wouldn’t go to even during the daytime. Much worse nowadays. One of the most murderous places in the world now.
Those three years were great, compared to what came later. Keep your good memories, i still retain some...
The best period for the nation in it's history was around 1952-1958. 60s and 70s did ok thanks to this first past administration along lucky circunstances but crippling corruption and dutch syndrome leaded to the local currency's downfal and societie's division during the 80s and 90s ending on the current mayhem we have today!
@@dr.a006 the people are the ones that allow the government. They are the ones that don’t want to work and spend all the money poorly. No outside force is making these poor decisions. This is why most countries will not ever succeed. They aren’t honest with themselves
I'm high right now and it really blows my mind that the country just went in a circle. They didn't learn anything from the past, and just did the same mistakes. I'm usually positive about people, but we really gotta do better.
That's what happens when people get stupid & vote socialist
tqvm
I think that about all venezuela crisis videos, this is the more Accurate, left to mention, that venezuela had at the beggining an overpriced currency that only allows export oil and the venezuelans manufactures were not competitive in foreign markets, but when the devaluation of the bolivar in the 80's, the government instead of let the economy run its course, with RECADI (control of capitals) didn't let that the exporter sector alternative to petroleum grows, because an exporter had to sell its dollar earned by his exports to the government by the low price that government artificially established about the dollar, killing the profitability of exporting, and with chavez was the same with CADIVI, these capitals controls maintained the country very dependent on oil , even the currency wasn't overvalued anymore.
Because of sanctions. No 30 mimutes needee tobexplain
Indeed, those capital control measures were in place for the sake of political stability but quickly degenerated to a get rich quick scheme, instead some type of direct subsidy and easing of imports should have been in order until domestic production could drive prices down, ramp up exports and create jobs.
The quality of your work is amazing! You deserve more subscribers!
Wow, thank you!
@@CasualScholar You're welcome!
@Casual Scholar I would like to see a vid for Argentina please.
Because their economy was strictly based on Oil. When the oil ran out. They didn't have anything to replace that for revenue.
Usually, their neighbors have big agricultural businesses (Fruits, Aloe, etc). And export the stuff to other countries.
Wonderful summary. Most of the time I have a very hard time trying to explain people from normal countries why Venezuela is so destroyed. A country endless oil reserves, zero international aggression, no natural disasters, and plenty of good land!!!
Zero international aggression, huh? 🥴🥴🥴
@@JSB103 The Venezuelan tragedy started 25+ years ago. The sanctions started after the country turned into a rogue state that supports any regime that opposes the US no mater the situation or ideology.
@@RubenGomezRealestate, I disagree. If what you say were true Chavez would have never seized power. _Anyway, I'm not defending chavismo here._ Over many years, Venezuela has been affected by several different factors and circumstances. I wrote my take on Venezuela more extensively on this very thread here six days ago, I just don't know how to point you to it. You're welcome to try and find it if you like. Perhaps you'd like to comment on it.
como venezolano puedo decir que este video esta muy bien elaborado, buen trabajo buscando la informacion :D
I think he is biased when it comes to reasoning
Because of sanctions. No 30 mimutes needee tobexplain
Venezuela looks after the people instead of selling out to big corporations, the US don’t like that and cracked down on them with heavy hands.
@Marcus Bazzell something tells me you dont really want the answer, so gtfi
@@madsam0320 how? Venezuela was wealthy despite any sanctions or US intervention and when the price per barrel fell, Venezuela did. Texas would have too had we not diversified our economy away from just oil and have medicine, NASA, etc. Venezuela relied on one cash cow that dried up.
15:25 what is the name of this music please?
Thank you, this was very informative. So often people use Venezuela as an example of why any tiny form of socialism is bad -- without having a full understanding of how Venezuela got to the point it is in.
Venezuela has more crude resources by itself than any single other nation on earth. It’s essentially floating on crude reserves. If it wasn’t dominated by a failed dictatorship, Venezuelas story would have been completely different. Probably would have been Dubai x10 and a major financial market in South America. But, hindsight is 20/20
Because of sanctions. No 30 mimutes needee tobexplain
@Black
But most of the damage was done by Chavez and Maduro.
@@heroisdacrise2024 Sanctions are no excuse, if they are so good, why do they need the US to thrive? They got the resources, they have too much corruption.
@@ppp8924 not sure if you know how sanctions work
@Black The country is a disaster because it wasn't managed well.
Nice video, Casual scholar! Your content is topnotch. Keep it up
Thank you! Glad you enjoyed!
There is no need for a long winded explanation of why it's a disaster when it can be summed up in one word. SOCIALISM!
What about the sanctions?
not socialism
its usa's sanctiones. every country be poor if usa sanctione them
@@carlrichieukmusicthe crises was in full swing by the time of u.s sanctions stop blaming the u.s for everything that's goes wrong.
@@Posidon09 that wasn't the intention of my comment. I'll reword my question.
Did the sanctions contribute to Venezuela's collapse?
@@carlrichieukmusic they probably did to an extent. However the situation they are in now would only be a tiny bit better if not for the sanctions. As seen in most other countries including Russia which uses alot of oil for it's economy sanctions are not effective in making a whole economy collapse. What brought Venezuela to what it is today is corruption greed and mismanagement of funds. to further support this the country was already failing when the santions came in
this all sounds like when one person calls shot no matter their intension it creates disaster.
Great video the resource curse struck again
Thank you!!
I'd say Socialism is more at fault.
@@tsunderella5826 this video shows that mismanagement of oil money have been an issue decades before Chavez and his soclicist policies
@@mikehurt3290 And that's were this video is lacking.
Regardless of the mismanagement of the oil revenues before 2000, at the beginning of the century Venezuela was an industrial hub in Latin America, a rich nation with billions to spend and infrastructure that was the envy of its neighbours.
Although many of the country's failures can be found in many resource rich countries across the world, the absolute mad destruction of the economy that the world has seen in recent years was the product of suicidal economic policies enabled by Chavez and Maduro, that this video doesn't analyze in depth or mention at all.
@@carloscampo9119 It peaked during 50ies~70ies. Now everyone closed their doors to us. Too much money, too much corruption. Even here we had some intellectual write about "the curse of the black gold".
Giving the military too much money, from what I see, really hurt.
In the late 1940s, Costa Rica dissolved its military, put much of the surplus money into education, and now not only has the best economy in Central America, but is time and time again ranked among the countries wher citizens are the happiest.
In comparison to South American countries, Costa Rica with limited resources did much with tourism and has a less corrupt government hidden in a strip of land in Central America. What hurts the South American continent are the corrupt governments, but resources are abundant and so is land.
What's crazy is that Costa Rica is the 14th happiest country, while the U.S is surprisingly in 19TH PLACE!! Even though the economy in a way is great.
I'd love it if you could get rid of the military in Venezuela, but they will always do coup when you try. Venezuela is doomed. These military have been corrupt from decades of gasoline trafficking (starting with the idiot that decided that gasoline should be nearly free).
@@brayanvillanueva7527 Because the US is a very unequal country, some are very rich, some have literally nothing. That and a number of other big problems. Big GDP doesn't equal happiness. Might mean there is just a lot of unequal wealth.
Thing is that Venezuela can't dissolve it's army as it has the Colombian guerrilla, and paramilitary and gangs in the frontiers with Brazil and Colombia.
Also has a territorial dispute with Guyana where Guyana has power over the Venezuelan territory of Esseqibo.
Thing is that people has to have a leverage over the army and no the other way around
I'm genuinely impressed that this video manages to talk about the Venezuelan economy for a half-hour and not use the phrase "Dutch disease" a single time.
😄 I was waiting for it the whole time.
it seems like winning, of the lottery, that destroys an individual, because one forgets that money has a limit...
Really good documentary, friend. I have been searching for videos on this topic and yours is one of the few that actually is objective and well presented. Most other videos either use false or borderline politically/ideologically biased fallacies like America causing their economic problems or capitalism being responsible. But you actually delved into their socio-economic history and the impact of their government style on their economic make-up and their current state. Kudos.
Thank you, I really appreciate it and glad you enjoyed!
No one claims capitalism destroyed Venezuela.
Most videos I seen start at the Chavez Era which is very important but doesn't show the whole picture like this video does going further back in the past
Who in their right mind would say "capitalism destroyed Venezuela"?
It’s very nicely laid out
ruclips.net/video/v11I_rm_Ymo/видео.html
Great vid been looking forward to
Thank you! Glad you enjoyed!!
had to check the video title several times as i was watching, as i believed it was about argentina 2022...
I bought a wonderful book Why nation fail. A great book
As a Venezuelan, I can testify this is an accurate description of the general political landscape, Venezuelans' "concept" regarding money and its value, how Venezuelans perceive what a local government should do (and, thus, what type of politicians to support), and how throughout Venezuela's modern history socialist or left-leaning governments have fueled corruption
Who do you think keeps these corrupt politicians in power on the promise of more free things? The problem is not the politicians.
They may have fueled it (by borrowing to much from the world bank, under the pretense that oil prices would keep rising), but they didnt start it.
@P T but you are? Don't make me laugh.
If only they'd had right-leaning governments, there would have been no corruption.
@@Scepticalasfuk wrong; see Brazil.
Corruption isn't a party or political side issue down here in South America, it's vastly constitutional, almost cultural if you may. Most societies down here refuse to truly evolve and it shows by the kind of politicians people trust in to be put in charge.
This has to be one of the best videos I’ve seen on Venezuela. Instead of having a bias you go all the way to the root of the problems and show how things have gotten out of control
Remeber choosing right government by countrymen is first right step, failing to change wrong government is biggest failure!
18:06 "it finally became apparent to Venezuelans just how unbelievable corrupt the government has become"
to me the lesson here, from someone living in Greece, is that both of our people are majorly at fault for our economies collapsing. The list of countries that I know that people directly brought their economic collapse has now risen to 3, Greece, Nauru and Venezuela
"Every nation gets the government it deserves." - Joseph de Maistre
"A fool and his money are soon parted." Without wisdom, great fortune becomes a curse.
I have financed 7 people so far out of Venezuela, who also have Spanish passports to Spain. Some of them were malnourished and so depressed. I can't save the world, but this is a project I have taken on at it gives me much satisfaction.
By Italian Law i should have the Italian citizenship and EU passport. Guess what the consulate of Caracas does? From a yearly demand of about 500000 people, they attend about 200 per year. It took me 3 literal years to get their system to assign me a date and be allowed inside. Once inside, the brought another excuse regarding my parents, even tho i also had grandparents with clear Italian origin (who emigrated to the great Venezuela of the 50ies). The alternative is to move to Italy and live more than 3 months and start the process there, yeah, with what income? Europe is not cheap to live. For whatever reason i once went to accompany someone to the Spain consulate and it was a similar situation, but a little better. I have given up and found a South American country that still welcomes us...
@@freeculture My people already had their Spanish passports and their Venezuelan passports and were ready to travel. A bigger problem with getting the Venezuelan passport if they didn't have one. They also had where to go in Spain (relatives who would give them a "hincapie". I also had other people that got their Spanish passports in two months after they applied for them. Immigrants everywhere find work--maybe two or three jobs, (Uds tienen fama de ser muy movidos y trabajadores.). I am sorry to hear about all your trabas y contratiempos, I don't know which latin American country you have found, but the only stable ones are Panamá, Costa Rica and Uruguay. Colombia just went "left". Chile is now problematic and as we know, Argentina is now called Argenzuela. Best of luck to you and may God be with you. P.S. Readers: sorry for the Spanish words here and there. I don't have the patience to look them up now.
Invest it somewhere else Mark, they don't wanna be saved
@@Tobi-kr1yp You are so wrong. One of them even got cancer and she would have died if she had stayed behind and Venezuela. you don't know the situation so shut up.
@Mark Schwartz I know the situation more then you know. There are people dying in so many other countries that need your help.
Funny how it’s called Black Friday but it refers to the day that prices increased overnight
When I was a little boy in the early 1990s, the word “Venezuela” meant 2 things, beauty queens, and extravagant wealth.