Actually it’s a textbook case for illustrating the failures of socialism. Nationalizing the oil industry to provide funds for grandiose projects and increasing welfare benefits was a great idea, or was it? Suddenly it’s impossible to get oil companies to come back in to maintain the equipment and assist in new exploration. Technocrats who warn of problems are silenced. A few years later oil production drops, but it wasn’t government policies you say, except anyone who knows anything about the industry says it was.
Then, double whammy, the price of oil drops. What’s a socialist government to do, but to keep spending? Only it doesn’t have the money and can’t borrow enough abroad. Cue, action, roll the printing press. Problem solved, and excuse me I have to run to the store to buy a loaf of bread before it costs twice as much. Hyper-inflation hit, but who knew that could happen.
Well then it’s time for price controls. What do you mean the stores are all out of toilet paper? You can still get a roll if you pay off the local party officials who are also moonlighting as gang leaders. How did we end up with the highest murder rate in the hemisphere here in the beautiful socialist paradise of Venezuela? It’s got nothing to do with these socialist policies, you say. Sure these policies are just wonderful. What’s not to like: oil industry in shambles, hyperinflation, price controls, falling GDP, massive corruption, and widespread violence. Way to go: socialism!