As oil prices fall, so does a socialist lament

Under Hugo Chavez and bouyed by high crude oil prices, Venezuala has grown into a petro-welfare state with cash to spare for political patronage and regional clout. But, since oil prices have taken a nose dive as of late, Chavez and Venezuela will have a very difficult time funding massive social programs and political promises made to countries and politicians (some in the U.S.) friendly to Chavez' leftist rantings. There is a lesson to be learned from Venezuela's situation as noted by Ian Vasquez of the Cato Institute: "When you have an economic situation that depends on wealth distribution rather than wealth creation you expose yourself to being in a very precarious situation."