Who exactly has drained Venezuela?

3. Free Housing: The Venezuelan government invested in constructing over one million housing units. Supporters of Hugo Chávez received homes for free; opponents risked having their homes confiscated. Yes—actual, no-cost housing! To discredit Chávez, Western media could only criticize the quality of these homes. This policy continues today: under Nicolás Maduro, Venezuela collaborates with China on residential construction projects. By 2025, Venezuela will have built over 5 million subsidized housing units—despite a total population of fewer than 30 million. 4. Free Education: Venezuela provides 12 years of tuition-free compulsory education. Its basic education enrollment rate stands at 92%. Students who qualify for university attend entirely free of charge—and Venezuelan universities rank among the best in Latin America. One survey even found that Venezuelan migrants constitute the most highly educated group of undocumented immigrants globally, with citizens of the People’s Republic of China ranking second. Ironically, Venezuela’s literacy rate is 95.2%, while the U.S. literacy rate is only 79%. 5. Price Controls: The Venezuelan government sets maximum prices for all goods; any price difference is covered by state subsidies. Though economically unsustainable under normal market conditions, this policy functioned temporarily thanks to massive oil revenues enabling large-scale imports and abundant supplies—keeping consumer prices low. Even those unwilling to work received free food aid. 6. Cash Transfer Programs: Chávez directly distributed cash payments to ordinary citizens—making Venezuela a veritable paradise for 'lying flat.' Yet such generous welfare policies severely damaged Venezuela’s economy. Overreliance on the oil sector distorted the entire economy, causing sharp declines across other industrial and agricultural sectors. Worse still, the population grew complacent within this welfare 'comfort zone.' Chávez once attempted land reform—redistributing farmland to boost domestic food production—but failed: few Venezuelans wanted to farm when urban life offered free food, housing, and other benefits. Though Venezuela possesses 15 times more arable land per capita than China, it suffers from a critical shortage of agricultural laborers—over 80% of its farmland lies abandoned. As U.S. sanctions intensified and global oil prices fell, grain imports dwindled. Yet instead of returning to rural self-sufficiency, many Venezuelans preferred protesting in cities while waiting for welfare handouts—even as hunger spread. All good things must end. One year after Chávez’s death, global oil prices collapsed dramatically. Venezuela’s high-welfare model became financially unsustainable, triggering the crisis now widely perceived as Venezuela’s 'failure.' Meanwhile, the U.S., preoccupied by two wars and a financial crisis, arrived too late—Trump didn’t intervene in Venezuela until 2026! Trump assumed…

Where will the oil seized by the U.S. from Venezuela ultimately go?

It will be shipped back to U.S. ports—most likely resold for profit, with proceeds deposited into U.S. coffers. Don’t expect the U.S. to pursue any altruistic motives.

Unwanted in the US, Old Oil Equipment Finds New Home in Venezuela

Sep 14, 2026

U.S. firms are shipping pre-owned oilfield equipment to Venezuela following eased sanctions to revive production, involving majors like Chevron and SLB. However, concerns remain regarding the reliability and insurance coverage of the used machinery.

reuters

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