The shocking capture and extradition of former Venezuelan President Nicolas Maduro and his wife over the weekend is the culmination of months of US pressure on the regime. President Trump and other administration officials have labeled Maduro and his close associates "narco-terrorists," accusing him of leading a huge criminal organization and profiting by violating US laws, selling large quantities of illegal narcotics which may have potentially killed Americans. 

But while the future of the Venezuelan regime is uncertain, it is worth taking a few minutes to understand how Venezuela got to where it is today and what Americans can learn from its descent into a tyrannical/criminal regime.

The time for a warning may be especially appropriate. Zohran Mamdani's election as New York City's next mayor and Katie Wilson's election as mayor of Seattle, both late last year, have people worrying about a surge in socialist sentiment across the US. Both Mamdani and Wilson openly campaigned as democratic socialists who believe: "No problem is too big, no issue is too small for the government" and "We will replace the frigidity of rugged individualism with the warmth of collectivism." 

Many with a lick of sense correctly criticize the naivety of these socialist economic policy ideas and collectivist sentiments. But fewer recognize the true horrors that can be unleashed by entitled college graduates voting for massive wealth redistribution.  

The tragedy of Venezuela serves as a cautionary tale.

Socialism plays the major role in the story of Venezuela's descent into poverty, desperation, and organized crime (Tren de Aragua). David Friedberg, a venture capitalist and a member of the All-In Podcast, recently interviewed Nobel Peace Prize winner María Corina Machado about the fraudulent 2024 national election in Venezuela — highlighting the tragedy of socialism and the resulting tyranny in Venezuela. 

Twenty-five years ago, its GDP was roughly $4,800 per person. In 2014, it was nearly $16,000. But the latest estimates for 2024 and 2025 are about $4,000 per person — roughly 20 percent less than in 2000 and a shocking 75 percent less than in 2014. Poverty rates in Venezuela have skyrocketed from less than a quarter of its population to over half. Yet, Venezuela has the largest known oil reserves of any country in the world – an estimated 300 billion barrels — 10 percent more than Saudi Arabia and seven times more than the United States.