Donald Trump has the political and economic power to stop the dictatorship that exists today in Venezuela. At one time the country had a high standard of living because of oil and a stable democracy. Today, there are many violations of human rights and the economy has eroded. Venezuela is now the poorest country in South America. Its economy fell more than 18% last year and the inflation rate surpassed 700%. How can the United States stop this regime? The answer is simple: stop importing oil from the country. This would be devastating for the government of Maduro.
Oil is key for Venezuela
We can see that Venezuelan exports are among the least diversified on the planet, oil represents more than 90% of all exports. If the price falls drastically or the U.S. stops buying, this would be hard for the regime. The United States could buy oil from countries such as Colombia or Ecuador or increase its own production. The Trump administration promotes the production of energy, thus, there would be virtually no obstacles to increase the local output. We have to add that in the past oil has already been used to punish aggressive nations and it works very well. This is more powerful than sending an army to attack a country.
Russia was punished a short time ago
After the government of Putin invaded Ukraine, the United States decided to increase exponentially the production of oil.
This way the price fell drastically and the exports of Russia fell, its international reserves plunged, and its economy contracted. The Russian GDP fell more $700 billion, it lost about one-third of its size. The local currency lost almost 50% of its value. Even today Russia hasn't recovered completely, it's paying a high price for invading Ukraine.
Its per capita income was about $14,000 before the invasion of Ukraine and it is about $9,000 today. The Kremlin will think twice before invading another country.
No more populism in the Americas
The United States must protect democracy, human rights and a market economy in the Americas. This is the best way to grow and become advanced nations.
In the past, there were many populist policies that produced just poverty and abuses. Brazil, Argentina, and Ecuador have had some leftist policies and we can see they are negative for society. There is a mix of recession, inflation, and corruption in those countries. Western civilization is based on solid principles that have to be respected if we want to keep advancing.
