Venezuela's state-owned oil industry centralized wealth in the government, creating a populace feeling excluded. This enabled Hugo Chavez's populist rise, as he could promise to redistribute state-controlled resources, an appealing message amid corruption and low oil prices.
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When the economic system, particularly the housing market, makes it impossible for the youth to get ahead, it guarantees the rise of populism. Desperation leads them to vote for any promise of change, however destructive, such as socialist policies that ultimately collapse the economy.
Once a destination for American economic opportunity, Venezuela's economy imploded after nationalizing its top industry and imposing widespread price controls. This recent, dramatic collapse serves as a powerful, real-world example of how such policies can lead to ruin, yet they remain popular.
Authoritarian leaders like Hugo Chavez systematically dismantle democracy from within after winning elections. They replace competent individuals in the military and government with those who are absolutely loyal, destroying meritocracy to ensure the state apparatus serves the regime, not the people.
The appeal of a populist leader lies in their rejection of traditional political norms. When the electorate feels betrayed by the established "political class," they gravitate toward figures whose rhetoric is a deliberate and stark contrast, signaling they are an outsider.
The inability for young people to afford assets like housing creates massive inequality and fear. This economic desperation makes them susceptible to populist leaders who redirect their anger towards political opponents, ultimately sparking violence.
Populist figures don't create societal problems; they rise to power because existing economic and social issues create an environment where their message resonates. To solve the problem, you must address the underlying conditions, not just the leader who represents them.
Government money printing disproportionately benefits asset owners, creating massive wealth inequality. The resulting economic insecurity fuels populism, where voters demand more spending and tax cuts, accelerating the nation's journey towards bankruptcy in a feedback loop.
Figures like Donald Trump don't create populist movements; they rise by capitalizing on pre-existing societal problems like economic despair. Focusing on removing the leader ignores the root causes that allowed them to gain power, ensuring another similar figure will eventually emerge.
Maria Corina Machado describes her generation as one that held politics in contempt and took democracy for granted. This widespread apathy created a power vacuum that allowed Hugo Chavez to rise, teaching a harsh lesson that freedom requires constant and active civic engagement to be preserved.
History demonstrates a direct, causal link between widening inequality and violent societal collapse. When a large portion of the population finds the system unbearable, it leads to events like the French Revolution—a blunt cause-and-effect relationship often sanitized in modern discourse.
