I John Oliver'ed my response to avoid delving into this more, but here is the cause and effects of the Venezuela issue. 1. Chavez was elected in 1999 and utili

I John Oliver'ed my response to avoid delving into this more, but here is the cause and effects of the Venezuela issue. 1. Chavez was elected in 1999 and utilized the OPEC cartel to decrease production and drive up the price. Utilizing the high prices, he gave away every socialist program that his increased oil prices could deliver. 2. When the socialist programs had to have more cash, Chavez muscled in on the oil producers and told them to find more revenue or else they would nationalize the oil rigs. Companies said there was no money unless operation and maintenance costs were foregone, and they would not undersign that so Chavez nationalized them (property right strike across the bow). This was done through the enabling law which ultimately what started the erosion of the rights. 3. As companies saw that profits could not be returned, they started to get the heck out of Dodge. Tariffs and other crazy price increasing measures were instituted until prices became very high. The government did the next property right erosion by controlling prices on goods. Black market took over to provide goods at real rates because the governments rates could not be met. 4. Any industry that was making a profit was derided in public speeches. 5. Foreign investors avoided investing in the housing market as they saw newly built properties nationalized. The government did not even pay the investors a compensatory fee! The oil is price is an aside contributor, but when you do not respect property rights, say goodbye to anyone wanting to invest in you.