Do the sums

Further to Sinclair’s post yesterday on Anti-capitalist millennials which touched on the very well written article by Tom Switzer and Charles Jacob in the Australian, consider the following chart.

But before doing so, Spartacus will refer to his earlier posts on Venezuela here and here.

As reported in Reuters, a 3 university study of conditions in Venezuela has shown that 90% of citizens now live in poverty.  But socialism can only achieve so much.  The other 10% must suffer in abject affluence so that the 90% can have income equality.


Venezuela was once one of the most prosperous nations in the world, blessed with ample natural resources and a nice climate (sound familiar). Venezuela has the largest proven oil reserves in the world, totaling 297 billion barrels as of 1 January 2014 and as such, should be one of the wealthiest countries in the world.

Good thing socialism works, doesn’t it.

Let’s just remember.  The rules are:

  1. It’s not the results that count.  It’s the intentions.
  2. If it does not work, it was either those evil capitalist or there were insufficient government powers.

Good thing Wayne Swan is on the job.

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12 Responses to Do the sums

  1. The millennials don’t associate Venezuela with socialism.

    They think it’s a problem with American imperialism or the oil industry.

    Insofar as they know anything about Venezuela or acknowledge that there’s a problem.

  2. Looks like Australia has some catching up to do. Where’s Phillip Adams et al decrying that we aren’t following Venezuela?

  3. Elizabeth (Lizzie) Beare

    Yes, it is just as Nerblob says, the millennials just put their Gramsci-educated eye-glasses on for Venezuela if they even recognize the name, which many don’t. The ignorance is astounding and the mainstream media is not going to improve that, are they?

  4. John Constantine

    If only their Venezuela had imported enough consumption machine revolutionary socialists to fuel a population property boom Ponzi and save the economy.

  5. Roger

    Socialism has worked for Maria Chavez, Hugo’s daughter.

    Venezuela’s richest woman has billions tucked away in evil US banks.

  6. .

    Norway also needs high prices, their private debt to GDP ratio is also very high; their sovereign wealth fund is in trouble if they need a fire sale because their independent Kroner will fall as they will demand foreign currency to transact their assets out of the NYSE and so on.

    Socialism never works.

  7. mareeS

    Meanwhile, neighbour Columbia is blossoming under a conservative government with Western mores.

  8. pbw

    So what’s all this stuff about Russia being an economic basket case? On those figures, Russia is getting US$34 a barrel, or 85%, more than they need to balance the domestic budget. Weapons sales seem to be going well, as well.

  9. .

    Sorry, posted this elsewhere:

    Russian real GDP per capita is lower than what it was in 2008 – which is only marginally higher than what it was in 1989.

    Calling them a basket case is a legitimate call.

  10. Saudi Arabia needs oil prices above $20 pb to make a profit on every barrel. The fact that they need an extra $68 per barrel is due to the 5000 or so princes who need to keep their millionaire lifestyles going, and the welfare that must keep flowing to the non-prince citizenry to keep them from revolting.

    Venezuela on the other hand, may have the largest proven oil reserves, but that oil is the heaviest oil on the market and gets nowhere near the price that light sweet crude gets. They need oil prices at around $80 pb just to make a profit off each barrel.
    They are also in deep debt to China and Russia, both of whom take Venezuelan oil as payment, meaning Venezuela gets buggerall for millions of barrels per year.

    I don’t believe that $40 figure for Russia. I doubt they’d be making much if the oil price is around $40. I believe they need the price to be well north of $60 to profit. Then again, Russia barely has a welfare system.

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