Venezuela had the greatest oil reserves of any country. The country was ruled for 14 years with the iron fist of Hugo Chavez. Then anti-capitalism wiped out the country and sent it into hyperinflation. “Socialism fails when you run out of other people’s money,” as Margaret Thatcher said. It is human nature for people to work less if the state is robbing them. What is the point of producing if the state just takes it away? Every socialist system has sent capital fleeing and caused investment to decline, yet politicians never see this. They just assume everyone will continue to work and pay whatever they demand in taxes. Venezuela is in a meltdown and people are starving.
As an employer, if workers were always confrontational, why would I desire to be in such a position? Eventually you quit, fire them all, and contract. The union workers in France kidnapped the head of Goodyear and his family and demanded a greater payout. Is it any wonder why Goodyear closed in France? Who would want to run such a company if they were always in an adversarial position with employees? If there is no team, there is no business. This is what socialism destroys. There is no teamwork; instead, it turns everything into an adversarial confrontation.
Full article: Venezuela Demonstrates Why Socialism Always Fails (Armstrong Economics)