How Venezuela Fell From the Richest Country in South America into Crisis

History.com ^ | 5/27/25 | Patrick J. Kiger

[DallasBiff]

It wasn’t that long ago that Venezuela, which possesses the world’s largest crude oil reserves, was a relatively stable democracy with one of Latin America’s fastest-rising economies. It was a nation so awash in petroleum revenues that the socialist government of the late former President Hugo Chavez spent huge amounts on social programs and, at one point, even provided free heating oil for impoverished Americans.

But starting in 2014, the South American nation began suffering a startling collapse. With Venezuela’s gross domestic product plummeting even more than the United States during the Great Depression, many of its nearly 32 million inhabitants became unable to afford food, and resource-starved hospitals did not have enough soap and antibiotics.

Meanwhile, Venezuela’s political system spiraled into turmoil. President Nicolás Maduro, whose 2018 reelection was tainted by accusations of irregularities and voter intimidation, faced massive street protests and survived a spring 2019 military uprising instigated by opposition politician Juan Guaido, leader of the elected National Assembly whose legislative powers were taken away by Maduro’s regime in 2017.

[Organic Panic]

And the cliff notes version of your condensed version;

COMMUNISM

[abb]

I can’t put my finger on a story that confirms that’s exactly how it developed, but knowing how Marxists operate, it sure seems logical. Wouldn’t take too many bounced checks to Arab, INC, to make the entire operation seize up.

[Vaduz]

Hugo Chavez spent huge amounts on social programs.

Obama and Biden thought it was a good idea too.

Flames ensued.

[catnipman]

i do remember that at least a couple of years ago, Venezuelan credit was so bad that napatha would only be delivered COD ... i even remember ships filled with naptha refusing to unload until payment was first made ....

[x]

IIRC, Cuba was also the richest country in Latin America before Castro. Poorer countries already have enough troubles. Richer ones go looking for them.