The Economic Failure of Venezuela

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Venezuela. Once the richest country in all of Latin America, it is now home to the single greatest economic downturn for a country in modern history. In terms of countries that had it easy, Venezuela, by all counts, should be at the top of the list. It's home to the largest oil deposits in the world - easily beating out the typical oil giants like Saudi Arabia, Kuwait, and the United Arab eremites ... but they squandered it.
A lot has been said about the political issues surrounding the downfall of Venezuela, and don’t get me wrong there have been plenty of political issues, but in this video, we will just focus on the fundamental economics behind Venezuela's unprecedented rise and its devastating fall.
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#Venezuela #Socialism #Economics
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Sources & Citations -
Weisbrot, M. and Sandoval, L., 2007. The Venezuelan economy in the Chávez years. Washington, DC: Center for Economic and Policy Research.
Boué, J.C., 1993. Venezuela: the political economy of oil.
Castillo, A.D.M., 2017. The Venezuelan State intervention in Economy (1936-2016), scope and limits. Economía
Allcott, H. and Keniston, D., 2017. Dutch disease or agglomeration? The local economic effects of natural resource booms in modern America. The Review of Economic Studies
Roemer, M., 2015, May. 11 DUTCH DISEASE IN DEVELOPING COUNTRIES: SWALLOWING BITTER MEDICINE. In The Primary Sector in Economic Development
Buxton, J., 2018. The failure of political reform in Venezuela. Routledge.
Corrales, J., 1997. Do economic crises contribute to economic reform? Argentina and Venezuela in the 1990s
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[@rdrive2000]

For an Economics channel, I expected that u know the difference between a monopoly and oligopoly. OPEC is an oligopoly not monopoly.

[@acuriousape]

Bud, you may want to review your version of the Pdvsa strike as it is inaccurate.

[@federicoboge]

You probably don't understand the impact that misinformation such as the one you produce can have, but maybe the comment section can give you a cue and how hard you missed the mark. Please consider putting this video down and refrain from uploading until you manage to do better research

[@juniorleslie4804]

@@rdrive2000 Neither. Monopoly is an exclusive right to a scale. One seller enforced by law. Oligopoly is a few sellers having a legally enforced right of a scale. OPEC is a cartel of a few major oil producing countries. The USA, UK, Canada, and Russia are major oil producers but not part of the cartel. No country or company has an exclusive right to buy or sell anything that can be enforced therefore neither monopoly or oligopoly conditions. Ex of monopoly postal service. Ex of oligopoly local taxi licensing bodies and they are both legal.

[@juniorleslie4804]

@@bramanko Embargo by the US has nothing to do with Venezuela problems. They started before the embargo.

[@NOVITTUEBIN]

"Lets make it rain like there is no tomorrow" And then tomorrow came.

[@argenisjimenez8118]

Yeah, it's a pretty nice resume.

[@gabrielreis9466]

Hugo Chavez made himself popular with all that welfare expenditure so he could change Venezuela's Laws and Constitution to give himself Emperor like powers. At a certain point of his almost 14 YEARS "reign" he was basically walking down the streets of the capital city Nationalizing bakeries, drug stores and every type of mom-and-pops business he laid his eyes on.

[@EduardoEscarez]

@@gabrielreis9466 Yep, "Nacionalícese" (Nationalize it!) is the shortest resume of his administration.

[@markelliot1379]

@@gabrielreis9466 , the poor were being looked after with housing projects, health and education projects and a freeze on price rises on 40 staple food items. He nationalised 51% of the nation's oil. America couldn't have a successful socialist state and put in illegal economic sanctions. Attempted regime change for no reason. Internationally Venezuela was recognised for its strong economy and fair voting system. The opposition boycotted the 2016 elections then complained they lost.

[@FormerPessitheRobberfan]

@@markelliot1379 lol. The poor were being looked after and all those housing projects and all that. All while the nation is generating no wealth. Is this a joke? Those things you listed aren't good things.

[@bagelsecelle9308]

Someone gotta tell them that the inflation rate is not a race

[@markelliot1379]

American sanctions. Country's got no money if America won't let you sell your oil or gold.

[@jon-unicorn-doxxer]

@@markelliot1379 China is their largest oil export partner...america doesn't need to import a lot of oil anymore...those Texas oil is just enough for their domestic use...you sound like a typical commenter who will always find a way to hate comment on America...

[@markelliot1379]

@@jon-unicorn-doxxer Venezuela is still under illegal sanctions from America. What's to hate about men, women and children going hungry and dying for no reason but greed. America's shale oil is not financially viable but they continue anyway.

[@alioshax7797]

@@markelliot1379 illegal sanctions ? But which sanctions are legal ? Sanctions are just the reflexion of international tensions, nothing legal or illegal in this

[@jon-unicorn-doxxer]

@@markelliot1379 those shale oil is financially doing fine...plus Texas and Alaska is a red State they will get support on Trump (subsidies or something)...their sanctions are recent...the Venezuela economic crises start when oil drops, even Russia affected by that...the problem is they print so much money Zimbabwe style, that their money become worthless...so are you gonna blame the US for their hyperinflation too?

[@memestar5281]

Yugo Chavez be like: Step one: Sell oil Step two: Use the revenue to raise people's living standards Step three: Borrow like there is no tomorrow, oil is infinite in supply, just spend more and gain popularity Step four: Crash the economy right before you leave power Step five: Watch citizens blame the next government for economic collapse

[@toontrooper4103]

Well he didn't leave power lol. He planned to actually stay in power for another term before he died.

[@charliepearce8767]

@@toontrooper4103 Do you live there ?

[@toontrooper4103]

@@charliepearce8767 No? Why does that matter here?

[@charliepearce8767]

@@toontrooper4103 Just wondering ...thats all... Poor people...their doing it tough there.

[@heinrichrahm1531]

Did you mean Hugo Chavez because Yugos is something you find in the Balkans

[@noisyboy844]

Their philosophy was, “let’s have it really good for a few years in exchange for a lifetime of misery”.

[@sub-zero5433]

facts

[@noisyboy844]

@@sub-zero5433 Facts? Just look at the state their country is in. 🤦

[@Pau-hl1zg]

@@noisyboy844??

[@crhu319]

Florida.

[@thefool1086]

@@noisyboy844 ??

[@Stunningandbrave]

"The government of Chavez was very economically left leaning." It leaned so far it fell over ffs.

[@SolarFlareAmerica]

I love this comment lmao

[@Stunningandbrave]

@@SolarFlareAmerica Thanks

[@LeReVaQ]

Ok boomer

[@Stunningandbrave]

@@LeReVaQ That was clever and original. I'd ask you to thank your mother for paying for your internet bill but I've got a much deeper relationship with her than you.

[@LovingYouAll316]

It fell over and left it’s tail in the air for communists to kiss and fawn over more.

[@julianzuloaga]

I live in Chile (South America) and since the crisis, there's been a flow of immigrants from Venezuela to my country. Today you find some Venezuelans selling bills of their currency as souvenirs in the public transportation in Chile, since due to the hiperinflation their currency worths close to nothing, so they sell their money as souvenirs.

[@leonardoeras7962]

Pretty much what happens with Venezuelans in Ecuador too

[@naughtbutme1451]

@El Gusanillo Del Juego No son refugiados. Son cobardes que se rehúsan a levantarse contra el gobierno que supuestamente aborrecen. Los supuestos refugiados no son más que oportunistas de los cuales te aseguro no más que unos cientos son perseguidos políticos. El resto sólo quiere esperar a OTROS resuelvan SUS problemas.

[@naughtbutme1451]

@El Gusanillo Del Juego Y por qué tiene que importarles lo que dicen los demas? Los media extranjeros no les dan de comer. Ademas, te equivocas invocando retorica 'conservadora' a la cual no me adhiero. Deben resolver sus problemas en lugar de causarlos en casa ajena. No te confundas, no odio ni desprecio a la gente venezolana por sus nacionalidad. Pero, esperando se van a volver viejos en tierras donde es pan de cada día escuchar sus quejas sobre el trato que una u otra persona les da. Necesitan trabajar por resolver sus problemas. Si otros lo hacen por ellos nunca valorarán o sabrán el precio que costó conseguir sus objetivos como nación. Como todo en la vida.

[@naughtbutme1451]

@el fantasma dorado Todos queremos eso, y debemos afrontar nuestros problemas. De lo contrario será otro país centroamericano condenado a la marginalidad. Aún en épocas de conflictos armados internos, los países sur americanos hemos podido llegar a un término estable. Por qué Venezuela ha de ser diferente.

[@allenwatkins4972]

I imagine Chile will be doing the same thing before long.

[@SepticTankFish]

Why is this video better organized and explained than any college class I’ve taken at university.

[@somethinglikethat2176]

Because it needs to be to get noticed in an ocean of videos. Teachers on the other hand have a captive audience.

[@charliepearce8767]

Universitys now for dumbing the population down . Taught to hate and find trouble where non exist . Its now all indoctrination to group think. So stop asking questions...Asking questions in the future will bring swift punishment and deplatforming.

[@iamtheangiechrist1090]

Because they try to explain what happened without blaming socialism. So yeah I would be confused too.

[@ForeverSweetx3]

Because professors generally don't understand education. They're just experts in their fields. So what do they do when the majority of the class is struggling? They blame it on the students instead of looking at their teaching and changing it to help the students understand the topic.

[@MrDICKHEAD28]

HE JUST CUT AND PASTE CNN FOX NEWS BBC BULLSHIT

[@gppy]

Im venezuelan and yes OUR ECONOMY IS LIKE A BLACK WHOLE

[@searchrankoptimize]

Why? And who is to blame?

[@Joel-wx7zk]

@@searchrankoptimize Debt, the country is heavily indebted, with no diversification in its economy, and it's currency is worthless. Combined that with corruption, and Venezuela is a dying nation until a change in government occurs, and a new currency is established under a new leadership. Any professionals with skils have abandoned the country and gone elsewhere, all you're left are those who are stuck and unable to sustain a collapsing social structure that was heavily dependant on oil money.

[@universenerdd]

@Iron Ostrich in Venezuela you have a bunch of billionaires… Who can’t afford to live

[@k0mentator507]

@@universenerdd not a bunch Everyone is a billionaire

[@shauncameron8390]

@@k0mentator507 Like in Zimbabwe.

[@afloresv]

Venezuelan here. You got something quite wrong: PDVSA's strike was due to Chavez appointing military officials to run the company, people who had no knowledge of the oil industry. This, along with the political tensions of the time, led to a general strike in the country, to which the oil industry joined. Chavez' reaction was to fire everyone who was part of the strike, which in most cases where extremely qualified people with decades of experience in the field. So much that many of them where quickly hired by oil companies around the world, and Venezuelan petroleum engineers are all over the world now. Conclusion: Chavez' intension was not to improve PDVSA, but to control it using military loyal to him (he did the same with all other state-owned companies). He caused an irreparable brain drain to the country, which has ultimately led to the destruction of PDVSA and the country in general.

[@scoobydoobers23]

Yeah, this is an example of why relying on KZbin for real information is a terrible idea.

[@sol2544]

In all honesty, he was focusing on how the politics affected economy, not on politics. This is why he tunnel visioned the oil company

[@Kenny-qo5tz]

So was the failed attempted coup by some of the Executives in PDVSA has no worth mentioning in your comment or the video. Sanctions aren’t either.

[@afloresv]

@@Kenny-qo5tz No, as my point is that the strike was not because the PDVSA workers where lazy and didn't want to work, but because of Chavez seeking control of the company at all cost. The attempted coup happened after the strike, check the dates (and not by PDVSA directives). And sanctions started in 2017 dude, that's about 15 years after the events we are discussing (strike started in 2001 and 'coup' happened in 2002). A bit of reading before jumping to conclusions based on ideological blindspots 😉

[@Kenny-qo5tz]

@@afloresv Well from everything I've read the Strike Started in December 2002 and ended in 2003. And the Coup was in April 2002. If I'm not mistaken April comes before December. Also, I've never thought people who strike are lazy, those are excuses to make seem people less. The only reason I mentioned Sanction is that this video is about Venezuela's Failure. A corrupt government is like the Virus and add Sanctions to it, and its a superinfection. Also, Sanctions were put in 2014 they were renewed in 2016 and some expire at the end of this year. And that is only what is Public. CIA shit that was done hard to be proven.

[@Lord_Fidel]

Exiled Venezuelan here. Oil production during Chavez's government actually decreased as a result of firing many extremely qualified PDVSA workers when they protested as he appointed military personnel who were involved in his 1991 Coup as the head of the company. Oil production slowly plummeted and no money was put into maintaining infrastructures. He kept hiring unqualified people until the government was the single biggest employer in the country by far. And then systematically fired those who voted against him in the non transparent, machine counted elections.

[@mariomendoza8041]

Didn't he put some marxist economics professor in charge of PDVSA.?

[@DaveA441]

Damn this is why America’s the best

[@sopota6469]

@MrRpspartan that's not socialism, just absolute incompetence and it is not a monopoly of only one political faction

[@mjimmeye22]

@@sopota6469 Sorry but that IS socialism. That is the Government seizing the means of production. Where ever there is socialism there is incompetence. Business owners knows how to better to run their own company than a Massive centralized government with bureaucracies on all sides.

[@yaj1v]

Just curious; by exiled, do you mean fleed and in self-exile or actually brought out by Venezuela?

[@-fuk57]

These Get Rich Quick advertisers that are littering KZbin are making it difficult to enjoy quality content such as this video.

[@sub-zero5433]

they b like “Don’t skip this ad!!!” As I skip the ad

[@jolhirondelle7418]

get ublockkk

[@jimeagle33]

Never update. No ads on my laptop.

[@user-yg2gw4je8d]

Brave browser is your friend, especially if you're using Chrome. Ditch Google's spyware and vastly improve your KZbin experience.

[@dawey8897]

The sad thing is, themore you talk about them, the more traffic goes to them. They have bots and programs snd algorithm for these kind of stuff. So always be vague when discussing about them.

[@Swenthorian]

I just watched a video (in Spanish) where a Venezuelan girl talked about the inflation as of 5 days ago. It doubles every week. The currency's value changes twice a day, as well. Just insane. She also talked about how people don't eat, while walking through a vacant mall and parking lot.

[@erinaleck]

Can you share the link to the video?

[@Swenthorian]

@@erinaleck kzbin.info/www/bejne/e6a1iXiwq8qNn5Y

[@stevele5858]

I feel like Venezuela is like that spoiled kid with super rich parents who later failed in life

[@magicwish7258]

And norway is his brother who is now richer and influencial.

[@ssach7]

Pretty much. When I saw the title of this video I was like "oh that'd be 1960"

[@ignacioe10]

Thats very accurate

[@juanmendez3290]

Pretty much, it is.

[@moodist1er]

That's because you're an illiterate plebe who doesn't possess an ounce of critical or rational thought.

[@potatobutroasted4308]

Love how country economy sometime works like economy of a person.Norway is the boring guy who save all his money,and Venezuela just spend all of it and go broke

[@facundoarlingtoncodorniu9961]

One is corrupted by the goberment and the other no, thats the diferencie

[@raulponce9012]

@@andrewlayton6728 Joe Biden and Donald Trump are pretty much in the same page when it comes to economics, just that one likes to thing that they are environmentally and socially responsible. Don't really expect any change or thing out of it to be honest

[@elduquecaradura1468]

Because countries are ruled by persons...?

[@defaultlogos2976]

@@raulponce9012 Isn't Biden aiming to get rid of Trump's Tax Plan? What are Biden's economics anyway? It is difficult for me to tell at this point.

[@robertfrost8531]

Default Logos Biden's economic plan isn't much different than when the Democrats owned the slaves. You'll labor to earn it, Biden will seize it from you and spend it.

[@binaway]

Giving free oil to Cuba didn't help either. Fidel, sort of, got free oil from USSR. When that empire ceased to exist Venezuela decided help out.

[@javiertorres9114]

I remember in 2001, I met a few Venezuelans. They spoke about Hugo Chavez being this great leader. And they looked down on the US telling me that we where doing everything all wrong.

[@StanbyMode]

@No One's Innocent stimulus checks decrease inflation

[@YaroLord]

I mean... - healthcare being a luxury and not a right - student debt crisis - more gun related crimes than any other country in the world but YALL AINT TAKIN MAH GUNS MHHMM *waves confederate flag - the entire tax system - corporations dictate your laws - excessive military spending while there are areas where the water is undrinkable Blessings that plague the world that we can only thank the USA for: - double standards and PC culture, toxic feminism - mass surveillance on the internet, loss of privacy and loss of net neutrality - ISIS (they existing are the byproduct of the consecutive fuckups of your government) venezuela never got it together but that doesn't mean that the venezuelans you met were wrong. The US is actually doing everything wrong and they are actively hated and despised by many countries in the world for very solid reasons. Engrave that in your brain.

[@toddpick8007]

@No One's Innocent The US ability to pay debt is astronomically good comparative to a 1 market economy.

[@shauncameron8390]

@@YaroLord Yet Venezuela has the world's highest crime rate while the US barely cracks the top 50. There's probably more than a few Venezuelans right now who wish they still have the right to own a gun as Venezuela happily gave it up to Chavez to their own peril around 2009-10. Most of the gun crimes in the US are committed in the cities largely run by left-leaning Democrats. Chicago, Baltimore, St. Louis, Detroit, etc. Which also goes to providing defence to South Korea, Taiwan, the Gulf countries, Scandinavia etc. which is why they are able to have a welfare state as opposed to fearing getting messed with by China, Iran and Russia.

[@joplin8433]

@@YaroLord "more gun related crimes than any other country in the world" Didn't bother to verify your claims before making them, I see.

[@Synthwavu]

*They lowered taxes and then heavy spent* wtf

[@xo-1320]

Oh hey that's the USA strategy.

[@wigglebot2368]

@@xo-1320 At least it isn't purely for faking human development

[@dylangoddard7449]

@@xo-1320 seriously explain I'm not saying your wrong I'm genuinely intrigued

[@xo-1320]

@@dylangoddard7449 America lowers taxes while taking oit loans and spending on certain things far more then it should. Raising taxes is seen as a no no to the populous. While raising taxes on the rich is seen as ok to some its not to others. Its mute as the leadership refuse to raise taxes even on themselves. We don't need 800 billion in military. Hell we only need to lower it to say 500 (to remain number one) and have 300 billion to literally ensure free healthcare. With enough to spare for infurstaure maintenance.

[@dylangoddard7449]

@@xo-1320 I see

[@James--Parker]

My issues with this video are the fallowing 1: It claims oil production boomed under Chavez when it dropped from 3 million barrels a day to 2.5 million barrels a day. (only oil revenues boomed due to higher prices) 2: It claims the mass firing of striking employees boasted oil production when it did the opposite. He forced everyone who knew what they were doing out of the company and the workers he replaced them with were chosen for their loyalty not because they knew what they were doing. They couldn't even do basic maintenance on existing oil fields much less develop new ones. 3: It claims that nearly all investment in the Venezuelan oil sector came from the government before Chavez took office. When in reality many oil giants invested in Venezuela. Most notably Chevron and Conoco. Who both made multi billion dollar investments in the country. About half of Venezuela's remaining oil production today is still operated by Chevron. 4: It claims non oil industries collapsed due to "dutch sickness." Non oil industries didn't collapse due to "dutch sickness" they collapsed due to Venezuela's complex system of price controls, currency manipulation and import controls and subsidies. Essentially the government made it so all import had to go through them. So you couldn't just buy a import from its producer, you had to get the government to buy it for you. The government would pay for this with its foreign currency it gained from its oil revenue. Then it would sell it to you for Venezuelan currency for a fraction of its value. Then impose price controls to force you to also sell your goods for a fraction of their value. This severally undermined Venezuelan industry. For one it forced local producers to often sell their goods at a loss. It also tied all industries to the strength of the oil industry. As the government relied on oil revenue to pay for imports. If oil prices or oil production fell, then the amount of imports the government could afford also fell. Then you wouldn't be able to to import those manufacturing parts or fertilizer you needed, sines the government is the only place you can buy imports from. So you're forced out of business. This is exactly what happened to General Motors, Venezuela's last major car producer. Who was forced to shut down its factories in Venezuela due to lack of parts. Which resulted in a 90% drop in the number of cars made in Venezuela. 5: It only talks about social programs and nationalization when it talks about over spending in Venezuela (which were both real issues). Ignoring the huge amount of money Venezuela spent on its bizarre import regime and on foreign aid to Cuba, Haiti and other countries.

[@therealnoodles7638]

correct. Fixed exchange rate made the whole thing a lot worse and complicated.

[@RageNukes]

For a guy named James Parker you have an extremely deep understanding of the Venezuelan situation. All of this is a thousand times more accurate than anything said in the video.

[@abrahamj15]

@@RageNukes and this is why people shouldn't judge an argument because of the name o color skin for the speaker, I hate all these leftist saying that you need to be dark o near-dark skin to speak about the Venezuelan reality

[@samuelmorales2344]

Correct about price controls. Bringing goods to market and taking a loss on purpose.

[@aaronmelian2570]

This should be the top comment.

[@klinchrx]

Chávez (all of his party and Maduro also) were the worst thing that happened to this country in all of its history! Period.

[@Charles-hy6gp]

Chávez wasn´t the problem, he stood against the Bilderberg Group and knew how Bush really is However his horrible replacement Nicolas Maduro don't even know where to start The worst thing that happened to Venezuela is USA, i don't think Chavez wanted to fucked up the economy, the shadow government did it

[@John_GGG]

@@Charles-hy6gp Neither was qualified to run a country. Maduro is completely incompetent. Venezuela had problems before Chavez, but they may never have the same level of economic prosperity they had pre-Chavez again.

[@sten260]

yes and his socialist left leaning ideals also

[@missouriresole4726]

@@Charles-hy6gp yes but Chavez spent too much money .

[@kanyeeast4495]

@@sten260 wait I need to know how you define left and right. Socialism in its essence is a far left ideology, only second to communism.

[@malonetravis5785]

"Dutch disease" Venezuela is like a beautiful woman who never knew how to properly leverage her beauty to sustain a life of stability for the long-term. She used her best years doing being with the wrong men and ultimately, has nothing to show for the gift she was blessed with.

[@dantesandiego3219]

Nice analogy. 🙂

[@genghiskhan5701]

Every failed leaders favorite quote "Its USA's fault"

[@genghiskhan5701]

@@Wood97718 THe sanctions were added after the Venezuelan government screwed up big time and began to spout anti American sentiment( allowing Russian Jet fighters didn't help) plus the sanctions were placed against the government officials not the country itself

[@germanm3507]

It is the USA’s fault! You got no right to meddle in venezuelas affairs. your leaders are always trying to destibilize, attack and control any latin American govt that does not bow down. USA is constantly trying to put in puppets like Guaydo. USA is not innocent in this.

[@gvlacic21]

Hmm. I wonder why they are everyone's scapegoat, poor innocent USA, can't seem to catch a break.

[@Daniel-fx7xv]

Just watch their corruption rate. Same with every USA enemy, just a bunch of stupid dictatorships that love to blame the US for their inhability to led a nation

[@gvlacic21]

@@Daniel-fx7xv interesting pattern. And how does one get informed about this "corruption rate" ?

[@Predetor4]

The saying "never put all your eggs in one basket" is very applicable.

[@michaelellringer5600]

Like Las Vegas! Eggs in one basket!

[@mikeg3439]

Correctly managed, even that one egg could sustain life at a level far above extant there. It's not just the one basket error, though yes, error it is. It's corrupt, incompetent, horrible mismanagement. Tourism alone could be another "big egg" for them.

[@shauncameron8390]

In the case of Venezuela, Chavez destroyed all the other baskets to focus on one.

[@NaggersandJoggers]

what if your a basket case

[@Grellan_L]

This was actually really well explained for such a seemingly complex issue, thanks!

[@warriorlink8612]

I remember when I was seven years old, my dad taught me that "what goes up, must come down". That is so very true in economics.

[@MG-kj2fx]

Depends on how it’s handled

[@sten260]

not always, USA economy have been growing for 250 years thanks to capitalism

[@ihazplawe2503]

@@sten260 Now I think the US needs some form of social democracy to help the multiple crisis

[@sten260]

@@ihazplawe2503 there have been all kind of forms of social democracy over last 50 years

[@sten260]

@theMoonrider true

[@MrChopstsicks]

When I was this early. Venezuela’s economy is booming

[@stc2828]

Mr. Chopsticks That is not many years ago

[@rentai8385]

STC thanks for going along

[@lolailo2199]

Was

[@matts5247]

Mr. Chopsticks ehh you missed that boat by like 15 years

[@MegaClogger]

Ok Boomer

[@rocketf20]

The new form of entertainment I found is going to an economics video on KZbin, cracking open a cold one, going to comments and clicking view 70 responses.

[@Monke-fj2qz]

Comment sections are comedy gold on these types of videos.

[@josearmandoguerrerochairez3454]

Mine is arguing with flat earthers and antivaxers in science videos, faking stupidity but giving trustworthy papers at the same time, and imagine them slowly choking on their words with their “I’ve got to answer the thing that will make me look less stupid” kind of answer.

[@Vitorruy1]

@@josearmandoguerrerochairez3454 they are motivated to defend their ego. It's a waste of time to argue with people who cannot afford to say "I was mistaken" or just "Oh, okay".

[@bguy510]

@@Vitorruy1 it's not a waste of time if you're having fun is it?

[@wbariq8407]

@@Monke-fj2qz Yeah they can be entertaining, but it costs you your sanity and IQ significantly.

[@gonzaloenrique8741]

Wow what an amazing video. So well explained to the lay person. Subscribed

[@stellaliu7690]

This is a very very well explained and researched video. I've been trynna find videos on venezuelas crisis but no one else explained it as well

[@Radrex89]

This is a biased video with not so truthful information, defending a now dead genocidal man trained by Fidel Castro, who before being president gave a coup d etat killing hundreds in one day, with one of the greatest capacities of mass hate (and false joy) manipulation. This is not a good video. This video has shown me either the creator's leftist political position, his inability to correctly research, or both.

[@yespls4184]

@@Radrex89 you're so painfully stupid, it physically hurts

[@jondoe406]

The video is very biased. Makes no mention of the U.S. economic embargo on Venezuela. Also ignores that Venezuela had billions saved up for any crisis, but U.S. froze their accounts which prevented Venezuela from buying food and meeting other basic needs.

[@VictorHugo-bi8wi]

I'm Venezuelan (now in exile) and I must say I have a hard time trying to explain the situation in my country without getting depressed. You made a great video explaining the current problems in Venezuela and the reasons that caused them. But I must say you made a few mistakes in the beginning of the video when talking about Chavez and PDVSA. You said PDVSA had problems with corruption but that's not true, actually PDVSA was one of the most efficient oil industries in the world since it was granted autonomy from the Government and nearly worked as a private industry. In the old system, PDVSA gave the oil revenues to the Government and the politicians used the money as they please. Did those Governments use the money wisely? No, but the problem was not PDVSA (since it was a efficient company) but those Governments. Then Chavez arrived with his socialist agenda and decided to change this, but not because of an anti-corruption campaign but because he wanted to use PDVSA as "an arm of the revolution", which meant PDVSA was used to support regimes in Latin America who were leaning to Caracas (like Cuba or Nicaragua) or directly finance Chavez' political campaigns. That's how Chavez became a political phenomenon in Venezuela winning election after election but if there have been something alike a checks and balance system he'd have been impeached and arrested for using public money for his own campaign. Plus, as you said, the difference is that Chavez used his socialists policies to choke the private sector through confiscations and currency and prices controls (and massive imports "thanks) to an overrated local currency). And it must be pointed out that Chavez had the support of most of the Venezuela people and about 60 percent of the adult population is guilty for the downfall of their country (that's the hardest pill to swallow for me). In conclusion, the wealth of a nation doesn't depend of his geography, resources or climate but ONLY ON THE NATURE OF HIS PEOPLE and that's probably the main difference between the fate of Venezuela and that of Norway or Canada.

[@eldesaparecido2939]

Ahí vienen los eruditos a decirte que estás equivocado

[@rokivulovic7598]

look on the bright side, at least 40% people was NOT guilty for it

[@XxLIVRAxX]

Must of what you said is true however I would challenge the notion that PDVSA was a very eficient company before chavismo, corruption was already a problem (specially securing contracts with the company), it was reasonably well run as state own companies in the third world go but nowhere near the great transnational oil companies, the main reason why PDVSA generated it's massive profits was that it was the operator of a goverment run monopoly that control vast oil assets.

[@Nunyabusiness40]

You hit the nail on the head. Socialism sounds great to the uninformed.

[@punctuationman334]

Gabe most forms of socialism yes. A well planned social democracy can work wonders for a country though.

[@RichardAHolt]

Simple: don't spend more money that you have and always save for the unexpected.

[@juniorleslie4804]

Cannot have a country where politicians pretend that scarcity does not exist and that everything is free. There is no free lunch. Everything is going to cost, one way or another. There is only trade offs. The nation does not produce wealth. People do. No nation can be wealthy unless the people who live there are. Politicians consume wealth not produced it. Cash and credit are currency, they are not wealth.

[@markvolker1145]

*Perhaps you can tell the US speaker of the house that!*

[@prumchhangsreng979]

@@juniorleslie4804 first of all, politician promise to bring jobs, solve problem like racism, securtiy, medical care to be reach to all people. No big politician promise free lunch, thats communism.

[@vulcanraven9701]

Richard A. Holt: Bush did exact opposite. America in the 90s was having budget surpluses and then he squandered it by cutting taxes immensely for the rich. It was the first thing he did in office and quite unfoirgiveable.

[@agustinfuldain5017]

@@prumchhangsreng979 is it crazy to think politicians promises free lunch? well, they do here. And all started with "public health, security and education". I know you probably got your own opinion and no poor latin guy can change it, but if you listen once, you'll get a different point of view from someone (one of millions) who trusted politicians and ended living in socialism. The state DO NOT produce anything. the politicians promises heaven with our taxes, with debt and inflation. the more things you espect from them, the more power they'll have. we construct the dictators we have today.

[@Chickennss]

I usually don’t like background music on videos, but with your videos, it works.

[@roryo2040]

This channel is fantastic in its unbiased in-depth examination of world economics.

[@drethekiller]

There's a lot of misinformation in this video, especially when it comes to the relationship between Chavez and PDVSA: Chavez didn't "clean" thr PDVSA. Rather, he fired all the workers who striked (on live TV!) and replaced them with his military cronies and their families. The workers who "rebeled" were highly skilled workers who fought for their rights. In the end, their replacements had no training whatsoever. The result is that Venezuela can only produce 5% of the oil produced at their peak. Overall, I felt the video was too biased and didn't reflect the economical atrocities committed by the current regime.

[@albertokarkourmoreno]

Totally right. The video does not reflect what really happened in that specific case.

[@arnbrandy]

Alas, EE tends to be a bit... "imprecise"... when talking about developing economies (at least the ones from South America!)

[@SuperKevin6464]

EE is a socialist so he has to excuse chavez and the socialism that brought venezuela to its knees. Im pretty sure the professor that taught the EE dude was a marxist like most college professors. Those who can do and those who cant teach, as they say... Thats why this guy is a youtuber and is operating on theory and opinion. Well actually he just straight up lied a few times in this video.

[@kaisahfx1246]

although popular this channel can be so far removed from reality

[@gustavoturm]

That's basically what he said, no? I mean: He didn't say he replaced the highly skilled people but he definitely said they were fired and replaced by people loyal to him. Also, they were on a strike, its obvious they were fighting for their rights.

[@KeanuOR]

Oh yeah EcoEx? If Norway is SO great, why isn't there a Norway 2?

[@manuelduarte8981]

It exists, it's called Sweden

[@laurentstorchi290]

clearly, we ran out of norwegians

[@earnthis1]

What a nonsense comment. Keep your feelings in check kid.

[@earnthis1]

@Transpecies Grolar Bear Really? So there are problems? wow! You mean places with humans have problems, so they aren't perfect?? wow! welcome to the world, kid.

[@KeanuOR]

@@earnthis1 Irony embodied.

[@carljacobson7156]

Good Video - these are just my thoughts: The Venezuelan Chavez Regime not only didn't diversify it's economy - they actively seized or 'nationalized' many businesses, setting up the massive economic self-destruction when oil prices dropped. Also - a major difference between Norway and Venezuela is population size: Norway has a little more than 5 million citizens, Venezuela had almost 30 million citizens. The Norwegian Sovereign Oil Wealth Fund provides much more money per citizen (more than 1 million kronar) than Venezuela ever could. And that's not even factoring in the vast cultural, economic/class and social differences that are present in Venezuela compared to Norway, which is very homogenous.

[@shauncameron8390]

Exactly. Chavez set Venezuela up for failure.

[@carljacobson7156]

@@shauncameron8390 And stole sh*tloads of money for himself. Chavez' daughter is worth over $1 BILLION!

[@THEBIGGESTSCUMBAG]

VERY INFORMATIVE VIDEO

[@MR3DDev]

Key components missing: The state took over many companies by force when they refused to sell which further increased the flight of capital A lot of money was given in cash and goods to other countries like Bolivia, Nicaragua and Cuba (just to name some) I am sure Norway is not giving away its resources to other countries

[@enriqexz]

Hey... who would have thought, I've been watching your videos almost since the beginning of the channel, never commented, but never thought you would do a video on MY country either... Urgh... you are right on some points but... VERY, VERY wrong at others. I don't blame you, you clearly do your research as an economist, the thing that foreign people usually don't understand is that... this is not a normal country with normal economic figues, basically... everything you have read and all your research, it's not actually true in many fronts. There are many points, but I will address one of the biggest one's for example, you talked about our currency, and I quote "when a country like venezuela starts exporting oil, its currency shoots up in value, because people need to purchase venezuela currency to buy venezuelan oil". That is totally and unequivocally WRONG. Venezuelan oil is sold in USD. Not in Bolivares (Venezuelan currency). In fact, venezuelan currency is not freely traded on the global market, the currency exchange is and has been for many, many years, controlled by the government. This means that as a private citizen, you can't just go to an exchange or a bank to buy foreign currency (USD; EUR; etc). You HAVE yo go through the government, and they sell you the currency at a FIXED price, and a FIXED (very low) amount, and only after approving some pretty insane paperwork. That for many years generated something similar to what you say, the governments fixed exchange was pretty low, but it was all a sham, that just created a parallel black market where currency was traded at the real market value, something MUCH higher. And the real market value of venezuela currency has almost never gone up in its whole history, ever since the "black friday" in 1983. Venezuelan currency has ALWAYS been constalty devaluated, and inflation has been an issue. This has just become HYPERINFLATION over the last few years. But it has always been a non tradeable currency in global markets. I could literally talk for days and days about the econmics of this messed up place where I was born, and I can tell you, most of what you said, it's not really true. Not your fault, if you are not on the ground in the country, you'll never understand the real situation by looking at data, and most data coming from other foreign sources by the way, from what I see on your references.

[@thecanadiankiwibirb4512]

Wow huh

[@joraco2559]

Hey no offense to you but where are your sources for these claims?

[@AlfredoEscalante]

Joraco you can talk to any venezuelan older than 25 years and they will tell you the same... The usd currency exchange has been blocked now for around 18 years so if you are 25-30 by now you should have lived through this history (or should I say nightmare)... No official sources because now the government controls the flow of information, tv channels and news outlets... You simply have to live there to experience the day to day hyperinflation.

[@Janshevik]

@Nuclear Confusion Yep, and when you stop that, you'd better have a very good army, preferably equipped with nuclear arsenal.

[@Erik-ko6lh]

This video was another neo-socialist trying to explain another socialist collapse.

[@BonkoTheFat]

Oh man. Watching this in 2021 and 8:55 hits a lot different than you probably intended

[@GregMoress]

And now the stimulus checks are going to be 'forever'. The poor printing press will never get to rest.

[@l27tester]

Don't forget the cultural differences, Norwegians are inherently frugal with money. Venezuelans party like there is no tomorrow.

[@brianaguila6925]

Pretty sure their government have officials who were capable (some may be corrupt) but they know how to handle money well, not DEPEND on ONE industry,be hostile to your middle class and never let ideology get over practical and proven ways of governance.

[@olugbengajaiyesimi113]

You made my day. Root root of poor nations never mentioned.

[@Bart230]

I'm pretty sure you'd call OPEC something closer to a Cartel than Monopoly, since it's multiple entities collaborating on not lowering the price.

[@monad_tcp]

OPEC = Oil Producers and Exporters Cartel

It's an Oligopoly; like Facebook, Twitter, Google, and Amazon and their obvious collusion with banning and policy changes now and in the past.

[@mohammedafsal3362]

By keeping oil prices high we have given earth more time before global warming is going to really hit every human.

[@prioris55555]

@@mohammedafsal3362 Welcome to the grand/major solar minimum. The Sun is currently putting it's boot down on global warming lie. Global cooling and epic precipitation will be here for decades to come. The floods in asia are just one sign.

[@mohammedafsal3362]

@@prioris55555 do to glaciers melting sea level will rise which is duo rise in temperature and you will say its because earth is cold and we need to increase the heat so that there will be more evaporation.

[@user-vw3gc3ns5m]

Make a video “pathetic economy of iraq the upcoming Venezuela”

[@magicwish7258]

Uhm iraq doesnt really rely on oil since it is mostly destroyed and doednt have economy anymore,is indeed pathetic but not like venezuelan. I GUESS

[@user-vw3gc3ns5m]

Magic Wish it actually relies entirely on oil . 99.4 % of its exports are crude oil . There no taxation system . The government 6 million of citizen which is basically is government handout from oil revenue . And unemployment quiet high cz the private sector is extremely underdeveloped which basically anyone who is not working for the government is possibly unemployed . They even import petroleum because they lack oil refinery which transform crude oil to petroleum proudct

[@thedoruk6324]

What Economy? Iraq had a decent economy when the previous killed leader in charge. There's no state now, all the activities have been destroyed by usa

[@magicwish7258]

@@user-vw3gc3ns5m I GUESS and there currency is deflating,not inflating so it is not venezuelan.

[@joshuakevinserdan9331]

@@thedoruk6324 It also had a dictator who was a warmonger. Hussein went to war against Iran, and then Kuwait when to steal its oil fields. USA or not, Hussein was going to destroy Iraq and its economy.

[@StevieDamnit]

4:15 - Lowering taxes isn't a very leftwing approach. In fact, lowering taxes while increasing spending is what the US is doing.

[@AJazzz]

Yeah but the US can afford it, Venezuela can’t and couldn’t

[@polygondeath2361]

it's a libertarian approach and libertarian isn't exclusive to leftwing. IDK why they added the leftwing part, it's just wrong.

[@zachb1706]

A J can it?

[@yashk246]

Hey isn't that legit Bernie Sanders plan

[@hybridwafer]

@@yashk246 Lowering taxes? Don't think so.

[@GAMEZONELITE]

You know you're country is in a economic collapse is when Old School RuneScape has a more stable economy and playing it to feed your family is a more stable paying job.

[@markp8263]

OPEC was not a monopoly it was a cartel. not a huge difference.

[@jerrymartin7019]

"You got the shit?" "Crude and uncut"

[@G1ennbeckismyher0]

Oligopoly, not monopoly.

[@fil2337]

Id love to see the economics of eastern europe

[@gorthorki]

Communism bad, national capitalism good. Basically.

[@cv4809]

Cleptocracy, nepotism, clientelism and corruption

[@sdssdds8415]

welfare from EU

[@Matt_History]

@slovene ball there is an economic system called state Capitalism. It's a capitalistic system where the government decides who can run a business and all of it is supposed to benefit the state without total government oversight.

[@maximmatusevich3971]

Please don't. Whenever a westerner tries to pick apart that region they do it looking through their pink eyeglasses. Oh Gorbatchev! I can't tell whether you were an idiot or a traitor but because of you a bunch of 12 year old squeakers are repeating bumper sticker slogans about things they know nothing about.

[@lockercoin3693]

excellent explanation!

[@muhammadmoslem2046]

Same happened in Zimbabwe. Hyperinflation ripped the country apart and triggered mass exodus of millions of people who took refuge in neighboring South Africa and Botswana.

[@benjamino.7475]

Such a refreshing take. I really love how you keep an neutral economic perspective on things. I was afraid that this would be another „Socialism bad, look Keynesianism doesn’t work“ kinda video but you kept it completely factual. I wish my economics professors in university would be more like you. Like there is nothing wrong with being of a neoliberal or keynesian mindset, but people in academics should look at each specific situation instead of going around bashing other opinions more often. Thank you

[@JohnDoe-sg7uh]

Benni-kun nothing wrong with being a neo lib? How so?

[@ekulzonum]

@@JohnDoe-sg7uh I rolled my eyes pretty hard yeah. I think Venezuela is a cut and fucking dry case of how it is bad but whatever

[@l.s.1235]

Keynesian theory does not support the idea of total government control over the means of production and market. Keynesian argument follows regulatory measure, government expenditure etc. as a key indicator of economic control. On the flip side, a socialist state largely controls all the or most of the means of production and economic activity. Socialism is the fifth stage in the Marxian stages of economic growth of a society (Marxian economics ). You cant call Keynesian theory "Socialism", as they differ largely in economic ideology. There is a difference in total state control and intervention of the state in economic activity. Venezuela - Socialism, Norway - Keynesian theory.

[@benjamino.7475]

The L I agree with you, I wasn’t implying that they are the same. Unfortunately some people think all government interference is “bad because venezuela”

[@carlosgerardofernandezluza6810]

Socialism does not work

[@Zweihander11]

As a Venezuelan I extend my greatest gratitude after exposing this topic in such a nice and objective way. Good job. I might be adding comments here and there every once in a while.

[@benghiskahn3673]

I wish better fortunes in the future for your people and country.

[@kevinp.h8655]

Kamal ThataTurk I’m Colombian, their next door neighbor and I wish the same for them

[@RageNukes]

It still gets a lot of facts incorrect. I don't know what kind of research he did. I know it's difficult, but if you are going to make an educational video then you better be properly informed.

[@Zweihander11]

@@RageNukes I'm sorry mate but if you'd like to be informed about the FACTS in Venezuela which I have lived through. You may want to experience them yourself first. Oh, and I don't mean to be rude about this it's just a recommendation.

[@nofanfelani6924]

@Zweihander11 My sincere condolences. I am currently studying economic and business, can you share me some of your stories and those actual facts if you don't mind?

[@tsancio]

Hi, you mention that oil production boomed in the Chavez years. Please check a production chart so you can see that it never increased beyond 3 MM barrels/day, a figure that had been achieved in the 1990's. The difference was that in 2004 prices starting skyrocketing, so income increased dramatically. The rest and the main premise (that we squandered our oil wealth) is spot on.

[@mikeb8682]

"far smarter way" says it all. I live is South Africa and our story is similar. Scary to see where it all leads to.

[@hsuanhunglin5385]

Economists: So what's the plan for our oil fields? Venezuela: Yes.

[@liquidminds]

"I'm gonna buy a boat"

[@nguyenhoanglong420]

This is why YOU HAVE TO STUDY MORE AND STUDY FOR EVER ! BE INTELLIGENCE NOT SMART

[@edwartexe]

"this is where it all went wrong" *Inmediately gets 2 ads one after another... I believe you

[@chrisrace744]

Get ad blocker bro. I dont see ads

[@RFGfotografie]

Great video

[@romin7255]

I'm currently trying and explain to my niece the concept of inflation and its potential dangers. I so regret this instance to be french. I would have recommended your channel right away if she could understand it ! 😪

[@cataldolotito416]

Arturo Uslar Pietri, one of Venezuela's biggest scholars said one time: Oil is our biggest blessing and our greatest curse.

[@DanielGonzalezL]

No vale yo no creo

[@ordeaux26]

nobody: Maduro: print also, thank you for covering Venezuela

[@EduardoEscarez]

Venezuelan economy: _Inflation going up like a Saturn V_ Maduro: *print even more money and blaming **_el imperio_** from printing all of that*

[@sandydegener6436]

"Where Did All Go Wrong?" USA Edition. (Spring 2022)

[@sub-zero5433]

oh god

[@sandydegener6436]

@@sub-zero5433 , "Someone call 911, we have a cardiac arrest..and a NASTY bruise on the head here!"

[@user-fp1go9fl7n]

Thanks for the explanation. The channel's namesake keeps itself up pretty well. I've only been recently gotten interested in the failure of Venezuelan economics because of all these weird pictures on the internet about bags made of money. But I think this explained it well.

[@paisastic]

The most important factor is that Hugo Chavez expropriated factories, banks, stores, farms, houses and buildings, thus killing the private initiative and entrepreneurship. Entrepreneurs were the first venezuelans to leave the country.

[@stevencooper4422]

Exactly, you gotta keep the talent around!

[@NotKimiRaikkonen]

People don't work their asses off when there's no reward. Its the reason the motto of workers in USSR was 'we pretend to work, they pretend to pay us'.

[@asinfinito]

@Nuclear Confusion I don't know what you're talking about, tbh. I can't think of a single example of any private company who actually trhived under Chavez, but have hundreds of examples (like CADA, who later became El Bicentenario) that were private companies expropiated by the goverment and then destroyed themselves under bad management. Sincerely, a venezuelan that now hates you

[@asinfinito]

@Nuclear Confusion in what do you base that? Did you read it? Dis you see the growth record of these companies? Not only there were less private companies, the goverment owed so much to the ones that weren't expropriated that they all went bankrupt. Could you tell me were you got that information?

[@asinfinito]

@Nuclear Confusion Nuclear Confusion Nuclear Confusion a heads up: Fox News is as factual as Cartoon Network. As a venezuelan, I can say without fear of making a mistake that the only company that thrived during Chavez's rule was Empresas Polar (I checked), and that's because they had many external contacts. International companies like Nestle, P&G and others did get better sales, but truly that was only because the local private sector was pretty fucked up, because of the expropiations. Maybe the notion of the goverment owning everything started with the crisis for your country, but in Venezuela we all knew thay Chavez was expropriating companies left and right for years, spiking suddenly in around 2006 (that's 6 years before his death, 5 before it was considered we had a crisis). I understand the misunderstanding, tho. Chavez was a terrible president (who actually did less in 12 years than the past goverments did in 4, and that's a fact), and the private sector did support the country before finally collapsing because it was simply impossible to maintain. I also don't intend to say he expropriated EVERYTHING in the country, however, in some point around 2008 PDVSA owned land, electric generators, a line of supermarkets and most local means of productions. Saying the private sector grew under Chavez is just outright misinformation. Saying the private sector became the main pillar of Venezuela's surviva is actuslly the truth

[@cmdr1911]

Efficient extraction of oil provides massive wealth. If that wealth is invested into infrastructure, trains technical personnel and manufacturing the oil fields can transition to other industries. Oil and gas is an advanced industry anymore. The personnel are well trained, just need the capital to make them useful to the economy.

[@jellybr3ak]

Venezuelan oil is actually pretty hard to process, it's thick, lots of tar, and requires a lot of chemicals to refine. Years ago, when the Venezuelan government proposed a co-op between them and Vietnam oil corporation Petrovietnam, we refused because the profit will be next to nothing.

[@cmdr1911]

@@jellybr3ak It has a high specific gravity and high sulfur. But there are refineries built to handle it because there is so much. Condensate, a by product of shale and fracking, mixes with heavy oil and can be more easily processed. Also at 100+ a barrel the quality doesn't matter nearly as much. The blended oil is pretty useful to industry.

[@IISCAFFII]

Q: Why did Venezuela’s economy fail? A: Socialism.

[@cloudpoint0]

Q: What is the first thing every nation wants when it gets wealthy? A: Socialism. [raw capitalism is a brutal way to live]

[@kgsniper4850]

@@cloudpoint0 I think you mean welfare not socialism.

[@shauncameron8390]

@@kgsniper4850 But either way, they end up collapsing due to complacency once the money runs out to finance that socialism/welfare.

[@sig99493]

amazing 🔥🔥🔥

[@anonimato1987]

It will be interesting to see how the economy could be rebuilt. Could you please make a video on that? Good job and keep it up

[@OrDinarMan]

You're like telling him to think of a solution and he could ask you for a professional fee haha

[@michaeluhen1794]

Property rights would be a good start to enable free enterprise

[@ThePucko97]

Ahem chilean style capitalism.

[@santosrailey3626]

first maduro and its cronies must go, hold a free and clean elections supervised by UN, re write the constitution. re start the economy. only time can heal.

[@LeonAnilom]

No, the economy can't rebuild because the people already got used to free stuff or next to nothing, and not paying taxes.

[@lordmiraak8991]

"But this is where it all goes wrong" *gets adds

[@Dawid-kn6mv]

*gets adblock

[@null301_]

*laughs in KZbin Vanced

[@whatisthis9951]

Imagine getting ads

[@pierrejeanson7014]

Thank you for this interesting video. I am very interested both in economics and in Latin America, and now I understand much better why Venezuela is in that so bad situation. I hope this beautiful country and its wonderful citizens will recover soon!

[@marksawyer1522]

Luv the content,the vids are brilliant but you have far to many ads. I lost count of how many times I had to push skip!! Great vids though. 👍👍👍

[@bucktiar]

Great video. One important detail you left out was monetary policy with Cadivi. They didn’t just waste on cash handouts... they conditioned these handouts on being spent outside the country, essentially encouraging capital flight

[@free_at_last8141]

I like that ship at 0:24, it looks like the captain just wanted to get a look at the building.

[@belmiris1371]

Thanks for the clear, unbiased info. I've heard so much rhetoric about this and I never really knew the facts.

[@logan7024]

Norway’s social fund is privately run as well. Love how you leave out all these important parts.

[@deusexaethera]

It's not privately-run if the managers have contracts with the government.

[@kinkaju]

Norway is NOT a socialist country by definition. They dosen't have any to see with the systen that destroy venezuela

[@adrianfigenschau3981]

It's not privatly run, it's managed by Norges bank, or Norway's Bank, under contract by the state

[@lonewalden30]

As Diego points out Norway is NOT a socialist country. kzbin.info/www/bejne/fJXJo6hvg616rKc

[@schievel6047]

Also Norway was in a different situation overall. They did not have poor people starving that needed immediate help.

[@TheMCChristian]

5:56 Of all the foreign imports “Korean Makeup”

[@jinjiyoshi5548]

Truuu. My former best friend was Venezuelan and her her entire make-up collection was Korean.

[@ls200076]

@@jinjiyoshi5548 Well, if you knew South-Korean culture you would have understand why it didn't shock me.

[@Yvonnaanderson]

It’s actually super popular as well as korean skincare. You can find it in most stores in USA as well.

[@StormWarningTV]

As a Norwegian I love it whenever I come to one of your videos and all I hear is "Norway is a poster child for a responsible economy" , "unlike Norway that were very smart with their investments" , "Norway is the best country in the world" (direct quotes) XP . Always love hearing people praise the best country in the world (economically of course). Faen det er bra å være Norsk! :D

[@NugsSlugsBugs]

Nordmænd og deres olie :(

[@rauldempaire5330]

And Norway is one of Venezuela's main partners in the Orinoco Oil Belt...

[@cassidy99ful]

StormWarning. Do you think It will remain so though. With millions of immigrants flooding Into your country and not getting jobs and taking out of the system and not contributing anything to the system and having on average 8 kids who will then grow up to live off of your welfare and not contribute anything and then they have 8 kids,It seems like only a matter of time before the system can't take the strain anymore and collapses. Or Is that Sweden I'm thinking of. LOL!!!!!!

[@rauldempaire5330]

@@cassidy99ful Right smack in the middles!

[@rauldempaire5330]

@@cassidy99ful And immigration "per se" is not bad, it$s how you manage it....

[@Kameeho]

As the saying goes... Give man a oilfield. And he will have all the money that he needs. Teach a man how to find and manage an oilfield and give him some basic understanding of domestic and international economics i.e. have him subscribe to E.E. and he will have all the money that he needs and all his future generations to come.

[@hallo-xp2wh]

They should stabilize their currency like how euro was stabilized using deutsch mark! They should find their way out of this by capitalism and industralization!

[@akashojha4225]

Do a video on economy of singapore

[@1pyroace1]

akash ojha I would like to see this

[@minoriruba1828]

I'm also super curious about that economy which is the cuz of so many stresses,so many suicides ,so many broken hearts also so many opportunities......

[@SimonNZ6969]

Yeah Venezuela genuinely makes me sad. Like hot damn. You had a chance to make a strong, long lasting South American nation. But ya threw it all away. Very sad, all that needless suffering.

[@henrycurran1672]

It's always socialism or communism.

[@Jack-he8jv]

@@henrycurran1672 more like democracy in low educated countries. its impossible.

[@JohnDoe-sg7uh]

Oil price dropped as Saudi Arabia increased production at the direction of US. Venezuela is more democratic than USA.... trump didn’t win the most votes... Video fails to mention how Venezuela is under attack By IMperialists

[@Hypnopotimus27]

@@Jack-he8jv Democracy is hard enough here in the UK

[@MZ-gn2kb]

Jack Crowder I agree, my country of Pakistan keeps electing corrupt candidates due to the low level of education, in my opinion, it would be better for a dictatorship to take place and grow the economy and then transition to a democracy

[@warispeaceignoranceisstren704]

"Venezuela".... "Coming soon to an America near you!"

[@solomonokoli212]

It's deplorable how a country with 300 billion barrels in oil reserves, a very skilled workforce, and good infrastructure(until the 2010s oil crash) has been reduced to an economic basket case and a reference point for failed countries because of poor government choices.

[@anuradhajaishankar7903]

maybe US blockades have something to do with it ?

[@shauncameron8390]

@@anuradhajaishankar7903 US blockades didn't cause Venezuela to purge the skilled workforce with regime loyalists. It didn't cause Chavez to seize all the factories and farms killing off its ability to feed itself having to rely on outsiders for food and other basic necessities. It didn't cause Chavez to impose price controls crippling private enterprise and their ability to turn in a profit and stay in business along with the supply chains. US blockades have nothing to do with it as Venezuela's collapse took place 3 years before any blockade was imposed.

[@DoomDutch]

Moral of the story: any type of government run poorly will fail.

[@andrewrozhen513]

Especially if this government is socialists

[@ObviusRetard]

Especially if the government is authoritarian and spends a lot of its resources to keep itself in power

[@bishalgautam5196]

socialist government has lot of power & one government gone wrong impact a lot of people's future. The business of business should be given to the citizens and govt should concentrate on regulations, law & order , infrastructure (Through taxes & revenue from resources) & welfare

[@ObviusRetard]

@@bishalgautam5196 True, the workers should own the businesses they work at so the profits go to the people that earn them

[@griffindinho5109]

@@andrewrozhen513 ignorant uneducated comment. Corruption was the downfall for Venezuela

[@SilentSalad]

Interesting video, I'd love an even more in depth comparison between the two counties oil policies. I have a feeling you have way more on this than you shared in the video.

[@tylerdurden3722]

The main differences between Norway and Venezuela: Norway 1. In the top 10 least corrupt countries in the world. (7th) 2. 40 years ago, the people voted to push a significant portion of their oil money into a Fund. That fund has grown to a size of $1 Trillion. Generating $150 billion per year. That's $24 000 per Norwegian per year. 3. Norway has a tiny population of 5 million 4. Their economy is diversified. 5. Despite nationalizing their oil, Norway is still the 26th most Capitalist economy in the world. It's a free market economy. Venezuela 1. Venezuela is in the top 10 most corrupt countries in the world. (172nd) 2. Instead of saving their oil wealth, the spent it all and then borrowed to spend more. 3. Venezuela has 30 million people (6x more) to take care of. 4. The economy was not diversified. 5. Venezuela is 179th on the Capitalist ranking. (Only North Korea is more socialist than Venezuela at 180th) ~~~~~~~~~~~~ The biggest difference, is that Venezuela has the Heaviest Crude oil in the world. Heavy Crude is very expensive to refine. Sweet Light Crude (the stuff Saudi Arabia is blessed with) is extremely cheap to refine. Thus, Venezuelan oil production is very reliant on a high oil price to be economically viable. This is compounded when you finance the costs of the state on the back of oil production. In other words, the oil price needs to be even higher if you wanna have profits to spend on social programs. And it's already difficult to turn a profit on the heaviest crude oil on Earth. The other factor, is that the Venezuelans stopped spending on capital investment. This includes investing in oil production infrastructure. Which resulted in oil production declining. But most importantly, they failed to invest in new oil fields. This is a significant part of the cost that goes into oil production. In the oil industry, you have to constantly spend money on capital costs, to keep on making money. Venezuela stopped investing.

[@vladtepesh3761]

A good mention would have been what caused the oil prices to drop.

[@odee2004]

yeah.. I agree with this

[@imperialhistati2348]

“Why would the government improve their services when in monolpoly?”- *A wise business man*

[@MundaneAxiom]

Good to see an economics-focused channel take such a balanced and factual stance in explaining this very touchy subject. Solid job

[@warrenstemphly5756]

Every economy south of the Rio Grande “What could go right?”

[@xandersafrunek2151]

11:00 In conclusion, details matter.

[@neville132bbk]

Interesting summary. ..but, as always with You Tube now, ruined by those infuriating intrusive advertisements

[@nickbull7278]

6:30 that spoon holder is a game changer, thank you EE for providing me with both economic and gastronomic gold

[@popeneia8591]

5:34" purchase venezuelan country"

[@henrycurran1672]

The us should become the United States of the Americas

[@gan8737]

We need to purchase the country to purchase the oil, colonisation all over again

[@saricubra2867]

Cuba too.

[@Handlebarrz]

Henry Curran to the rest of the Americas, there's only one America and that's the whole hemisphere.i think if the US would've built WITH its neighbors, we could've kept the Chinese in check while sending those dollars to South America instead. The Americas has plenty of resources to become the world's powerhouse

[@galop13ful]

Panama and Chile, please! Great content!

[@shauncameron8390]

And Costa Rica.

[@mateoserranovaldivieso5830]

Please do a video of Ecuador!

[@1Canucks94]

This is the most fair and objective video I have ever seen on Venezuela! Thank you for keeping it objective and actually talking about the economy and how it works rather than the evil leaders!

[@RageNukes]

It still gets a lot of facts incorrect. I don't know what kind of research he did. I know it's difficult, but if you are going to make an educational video then you better be properly informed.

[@mr.normalguy69]

I still don't get why do people have polarizing views on Venezuela?

[@Hypnopotimus27]

Some people can't admit that communism just doesn't work

[@TalosLordOfNight]

Some people just can admit they screwed up and try and blame everything on the US

[@carlosgerardofernandezluza6810]

Because its largely a political issue, in addition there's a lot of people that had to leave venezuela because of the economic situation that was largely produced by government corruption and bad resource management

[@XxLIVRAxX]

Ideological stances supress any logical or ethical considerations

[@s1lverFoX]

@@Hypnopotimus27 like the creator of this video

[@gmo2932]

Venezuelan here. You glanced over something very important. Chavez, over a period of 10+ was taking random companies and giving them to his family and friends who didn’t know how to run them. Later chocked the local industries more by limiting access to USD to whom ever wasn’t aligned politically to his ideals. So tons of local companies either closed down or where being ran at 1/4 output as before. Adding later to what you mentioned regarding Dutch desease and that’s the reason inflation spiked extremely bad instead of just bad. This information is seldom found online because it happened over a long period of time and where small things.; Chavez walking around a small town, sees a cement company, asks his deputy who own it, “it’s a Mexican cement company” , Chavez says that should be Venezuelan and orders his goons to take it and gives it to his military friends. A few years later the cement company closes down because no one knows how to run it or fix the factory. Later Venezuela has to import yet more cement and back to your Dutch desease issue. Venezuela has this oil issues before, but it wasn’t until Chavez completely obliterated the local economy by stealing under the pretext of “21st century socialism” which was nothing other than a kleptocracy.

[@WendyDaCanuck]

I’m guessing it all went wrong the first time an American heard that they have oil there. It was all downhill from there.

[@FZJanimated]

@New King i call them first world people entitlement. they know nothing about how shitty and corrupt the third world countries are. they believe tha the US is the cause that latin america are doing bad.

[@WendyDaCanuck]

@New King Don't be so hard on yourself. You aren't stupid you are just a little bit slow.

[@davilago2559]

Make one looking at Brasil's economy!!! I really like your videos, good job!

[@asahi43]

Awesome video and channel! A new favorite. Would you consider a video on why Argentina’s economy consistently experiences shocks?

[@villalba874]

Is not just the oil crash, its also the machinery used to pump that oil, its antiquated, it's way past its prime, and it needs serious replacement.