Venezuela

Socialism has been tried many times throughout history and it failed. While it promised prosperity, equality, and security, it delivered poverty, misery, and tyranny. The latest example is Venezuela. The discovery of massive oil deposits in Lake Maracaibo during World War I[65] proved pivotal for Venezuela and transformed its economy from a heavy dependence on agricultural exports. It prompted a boom that lasted into the 1980s; by 1935, Venezuela's per capita gross domestic product was Latin America's highest.[66] Gómez benefited handsomely from this, as corruption thrived, but at the same time, the new source of income helped him centralize the state and develop its authority. The development of the oil fields was done by foreign companies and in 1976 Venezuela nationalized the oil industry. Many of the engineers left the country and this led to mismanagement. Populist leaders gained control and promised to redistribute the wealth acquired from the oil companies. A country that once boasted high education levels, cultural achievements and a thriving oil industry, has managed to turn a winning hand into a losing one. Leaders like Hugo Chávez and Nicolás Maduro helped lead the country down the path of collapse. Without skilled labor or a major oil company to step in, Venezuela could become a net importer of oil within a year. Once the oil goes, so does everything else. We're talking economic woes, societal dislocations and famine.