I agree that nationalization alone does not explain the magnitude of the economic disaster in Venezuela. Using the oil industry as a piggy bank to support all kinds of giveaways is a more venal economic sin. So was not investing sufficient funds in maintaining, modernizing, and exploring. Stiffing banks and oil companies was momentarily gratifying but it came at a long-term price. Norway in contrast has been a model of putting money back into the business, thinking for the long term, and fostering good relations with international banks and energy companies. Printing money to cover debts and support an array of wonderful benefits the country could not afford was classic mistake often made by socialist governments. Inflation goes through the roof. Then the price of oil drops and double whammy for Venezuela, but not the end of the world for Norway. Norway has a capitalist market economy with a social welfare net. Venezuela has tried to implement more of a socialist economy, but it’s not working out too well.

Mathematician, Statistician, Businessman, and Academic. Student of history, poli sci , and the Bible.

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