US sanctions against Venezuela are barbaric and immoral. But, they are not responsible for the economic collapse that has transpired in Venezuela over the past twenty years. Yes, the sanctions have further reduced the standard of living in Venezuela, and the burden of relative impoverishment caused by the sanctions has fallen hardest on those at the lowest end of the socio-economic ladder.
However, the effects of these US-imposed sanctions have not been nearly broad enough to be responsible for the general collapse of economic conditions that we now see in that country.
It is important to make this distinction because defenders of Venezuela’s socialist economic policies have repeatedly attempted to claim that sanctions are the primary reason for the country’s economic collapse.
Why do the socialist apologists claim this? It’s so they can make the case—as socialists are always eager to do—that socialism would be a boon for everyone’s standard of living if only it weren’t for the interference of foreign states like the US.
The truth, however, is that socialist policies like those practiced in Venezuela—widespread expropriation of private businesses coupled with vast wealth redistribution and government dominance of major industry sectors—are more than enough to destroy any polity’s economy. It is not necessary for Washington to intervene.
Hellbound and Down 
Mismanagement of the profits from the price surges hurt them “big time”. Venezuela could have done “okay” if they would have the overages longer. (I was told that corruption ate it up and Venezuela wasn’t at the break even price for public services for quite a while).
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