Selectorate Theory and the relationship between Capitalism & socialism

... the reason why Venenzuela turned the way it did was BECAUSE it had oil. it's called the resource curse. Fledgling dictatorships like to use faux and idealistic notions of democracy & socialism to appease their population while they systematically take their rights away. they use the money from oil to pay the military & police to brutally suppress the slightest hint of rebellion. This is all explained in detail in the book "the dictator's handbook: why bad behavior is almost always good politics", it's a good read. CGP grey made a summary video called "the rules for rulers".

Leaders that don't have natural resources like oil, gold, natural gas, etc., will not have the revenue to forcefully keep themselves in power. Their only option for revenue that is left is for them to rely on taxation. since capitalism is a more effective method at revenue production, it is a better option for fledgling democracies. However this doesn't mean that socialism can't be a good option in conjunction with capitalism. Socialism works when it is a better method at providing benefits using tax money rather than through the private sector. the fire department, police, scientific research, basic utilities, schooling and other govt programs are good examples.  

resource curse: https://en.wikipedia.org/wiki/Resource_curse  

Dictator's handbook: https://www.amazon.com/dp/B06XBY3XJV  

Rules for Rulers by CGP grey: https://www.youtube.com/watch?v=rStL7niR7gs

 

Socialized Healthcare

socialized healthcare and college could end up paying for itself in the long run. This isn't guaranteed, but the simple fact that easier access to higher education and healthcare which leads to higher numbers of healthy and educated people, means that more people will be earning higher wages, which leads to higher tax revenues for the government with which to pay for healthcare and higher education.