Sanctions did not destroy Venezuela. Socialism did.

It is shameful to see a delegation of the terrifying Grupo de Puebla “supervise” the Venezuelan elections that authoritarian leader Maduro wants to manipulate again.

Grupo de Puebla

The Puebla Group “supervising” elections is like Pablo Escobar overseeing the fight against drug trafficking. This infamous organization defends all communist murderous dictatorships and looks to the other side when human rights and freedom of expression are attacked in socialist regimes.

There is no comparison to the economic disaster that Venezuela’s 21st-century socialism has caused. As José Guerra, an economist at the Venezuelan Observatory of Finance, explains in his brilliant book “25 Years of Chavista Governments,” over the past quarter-century, Venezuela’s gross domestic product has plummeted by more than 55%, while the region’s GDP has grown by 25%, per capita income has dropped to less than half, poverty has increased 2.8 times, extreme poverty has multiplied by five, and the real minimum wage has sunk by 99%. 21st Century Socialism led the Venezuelan economy to the utmost misery, with the applause of the global left. Let us not forget, moreover, that Chavism wasted the enormous oil income it received during the years of high crude prices, sinking the economy despite receiving more than a trillion dollars of oil revenue between 1999 and 2014.

Nine million Venezuelans have been condemned to emigrate; poverty levels exceed 80 percent, according to the National Survey of Living Conditions/Encovi; and Chavism has destroyed the national currency, the bolivar, with a monstrous collapse of purchasing power. In the last 14 years, 14 zeros of the currency’s nominal value have been removed.

You may have read the lie that Venezuela’s problem is the inexistent US blockade. It’s completely false. In Venezuela, there is no blockade and it has bilateral agreements with more than 50 nations, including the major world powers. The United States is one of its main trading partners, along with China, Russia, Turkey, Spain, India, the Netherlands, and Brazil, among others, according to government data. Furthermore, Venezuela has received soft loans and financial support from China and Russia in excess of $78 billion since 2014, according to the US CRS. Moreover, Venezuela has been the largest beneficiary of soft loans and debt restructuring in the entire region since 2013. Indeed, the first person to acknowledge that there is no blockade is dictator Maduro, who boasts of the dead-cat bounce of the economy and its rising exports. Hilarious.

There is no blockade in Venezuela. The only blockade is that which socialism imposes on impoverished citizens. There are only sanctions on the leaders who have robbed the Venezuelan people with full hands and have demolished the state-owned oil company, PDVSA, which has gone from being the most efficient in the world before chavism to a decapitalized and indebted company on the brink of bankruptcy.

Monetary destruction and confiscation of private property, as well as rampant corruption, are trade marks of socialist regimes. Chavism is no different. They stole 3.4 million hectares of land, confiscated more than 523,000 apartments, and expropriated 1087 businesses. In addition, 62% of the expropriations were abandoned, and 95% were directly stolen.

Chavism has closed more than 40 national and regional newspapers, almost forty radios, and blocked the broadcast of more than thirty television stations, including the Spanish-language CNN or Antena 3. In addition, Chavism holds more than 260 political prisoners, according to the Criminal Forum.

Venezuela is the most unsafe country in the region, with more than 330,000 violent deaths in 20 years of the Chavista regime, according to the Observatory for Violence. The NGO Provea published that Maduro’s government killed more than 9,400 people between 2013 and 2023, institutionalizing murder, according to the NGO.

Hyperinflation, misery, and repression. A murderous dictatorship was perpetuated with the support of the Sao Paulo Forum and the terrifying Puebla Group, which also whitewashed the Castrista and Nicaraguan dictatorships. That is the legacy of Chavism, which the left has applauded for years and continues to support. This is the same left that has the temerity to tell you that they defend democracy, progress, and freedom of expression.

This caviar left that remains silent in the face of murder and misery in Venezuela and Cuba is the same that voices concerns about the rise of the extreme right while looking to the other side when faced with evidence of the socialist terror regime.

Sanctions did not destroy Venezuela. Socialism did. In times of high oil prices, squandering the record oil revenues, and implementing a regime of terror, misery, and confiscation where political leaders become obscenely rich, stealing the nation’s wealth just like they do in Cuba, Nicaragua, and other socialist regimes.

About Daniel Lacalle

Daniel Lacalle (Madrid, 1967). PhD Economist and Fund Manager. Author of bestsellers "Life In The Financial Markets" and "The Energy World Is Flat" as well as "Escape From the Central Bank Trap". Daniel Lacalle (Madrid, 1967). PhD Economist and Fund Manager. Frequent collaborator with CNBC, Bloomberg, CNN, Hedgeye, Epoch Times, Mises Institute, BBN Times, Wall Street Journal, El Español, A3 Media and 13TV. Holds the CIIA (Certified International Investment Analyst) and masters in Economic Investigation and IESE.

7 thoughts on “Sanctions did not destroy Venezuela. Socialism did.

  1. You are a Useful Capitalist Idiot if you actually believe what you wrote about the election in Venezuela. You probably believe that Kamala Harris is a great choice to be President. You probable believed, just up until The Debate, that Joe Bidden was fully in control of his faculties. You probably still believe that Dr. Fauci is a wonderful guy, and that the good folks at the Alphabet Agencies are just the nicest people; wouldn’t hurt a fly. Yeah… you are a Useful Capitalist Idiot.

    Thank you for your service.

  2. If socialism was as destructive as you say, China would not be doing as well as it is.

    The economy of Venezuela wasn’t good before socialism. It’s true that attempted socialists reforms haven’t been an improvement. One big reason they failed is because solving Venezuela’s economy is far from easy, whatever the ideology. They depend on oil, that is a good source of income but with volatile prices. They have some good agriculture and a bit of industry, but the industrial base is too hollow, and filling the gaps in order to become a developed country is difficult when they started from fairly abysmal education levels.

    Attacking the ideology in order to get cheaper oil from a poor country is hitting rather low, but not too low for Uncle Sam, who likes going for the gonads.

    1. China is not a socialist economy today. When it was, it was a disaster that killed millions. Today it is an authoritarian regime but a capitalist economy. In fact, Chna, as an economy, is closer to what socialists call “savage capitalism”, a statist corporativist regime where workers have no real rights and that has the largest creation of billionaires of any other country.

  3. ‘Sanctions did not destroy Venezuela. Socialism did. In times of high oil prices, squandering the record oil revenues, and implementing a regime of terror, misery, and confiscation where political leaders become obscenely rich, stealing the nation’s wealth just like they do in Cuba, Nicaragua, and other socialist regimes.’

    “Maduro recognizes Venezuela is still a capitalist-based economy…”, (Popular Resistance newsletter, 27 May, 2018)

    This is what Fidel said when urging Mexican businesspeople to invest in Cuba, in 1988: “We are capitalists, but state capitalists. We are not private capitalists.” (Daum, Walter , 1990,. The Life and Death of Stalinism)-

    ‘Ortega and the FSLN have dressed in a leftist discourse their attempt to establish a populist multiclass political alliance around this project of capitalist development under the firm hegemony of capital and Sandinista state elites’ (truthout, May 18, 2018).

    Thatcher: ‘there is only one economic system in the world, and that is capitalism. The difference lies in whether the capital is in the hands of the State or whether the greater part of it is in the hands of people outside of State control,’ (House of Commons speech, 24 November, 1976).

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.