U.S. Treasury Secretary Scott Bessent is drawing a sharp line between young Americans’ skepticism of capitalism and their lack of market participation, arguing that attitudes toward socialism are inseparable from whether people actually own stocks.​ In a wide-ranging interview with CNBC’s Squawk on the Street anchor Sara Eisen on the sidelines of the Treasury Department’s Trump Accounts Summit in Washington, Bessent was asked about a Gallup poll finding that 39% of Americans have a favorable view of socia ...

Economic Background - Venezuela was once the leading economy in South America due to the discovery of massive oil reserves in 1922, currently holding the largest reserves globally at 303 billion barrels [1] - Despite this wealth, Venezuela's economy is now the poorest in South America, raising questions about the mismanagement of its oil resources [1] Nationalization and Socialism - The nationalization of foreign oil companies in 1976 marked a significant turning point, leading to the establishment of Petróleos de Venezuela, S.A. (PDVSA) as the state-owned oil company [1] - The election of Hugo Chavez in 1998 initiated a shift towards socialism, with the introduction of "Plan Bolivar," aimed at poverty alleviation through infrastructure and health initiatives [4] Management Issues - In 2002, Chavez's government dismissed top PDVSA executives and 18,000 skilled workers, leading to a decline in operational expertise within the company [5] - The appointment of political allies over qualified professionals resulted in mismanagement, causing a rapid decline in oil production from 3.7 million barrels per day in 1970 to 1.1 million barrels per day recently [7] Economic Decline and Hyperinflation - Nicolás Maduro's presidency, starting in 2013, exacerbated the economic crisis, leading to hyperinflation that peaked at 375,000% in 2019 due to excessive money printing to fund government services [11] - The government's reliance on oil revenues failed as production and revenues fell, leaving the economy without alternative sectors to support it [12] Migration and Sanctions - Over the past decade, U.S. sanctions have targeted Venezuela, restricting financial arrangements with the government and contributing to economic isolation [15] - The number of Venezuelans living abroad surged from 700,000 in 2015 to approximately 7.9 million by last year, indicating a significant brain drain of skilled workers essential for economic recovery [16]

Group 1: Political Developments - U.S. special forces captured Nicolás Maduro and his wife, indicting them on charges including narco-terrorism conspiracy and cocaine importation conspiracy [1] - President Donald Trump announced that the U.S. would initially take over the administration of Venezuela to ensure a safe transition [2] Group 2: Economic Challenges - The Venezuelan Bolivar has weakened by 469% over the last 12 months, indicating severe currency instability [2] - Inflation in Venezuela reached an all-time high of 344,509.50% in February 2019, with economists suggesting the true rate was likely even higher [6] - The economic issues in Venezuela are attributed to poor economic policies dating back decades, including the nationalization of oil and gas companies in 1976 [6][7] Group 3: Oil Industry Impact - The collapse of PDVSA's crude oil output, which fell from a peak of 3.5 million barrels in December 1997 to 1.1 million barrels recently, is linked to political appointments over skilled management [13] - The Trump administration expressed dissatisfaction with the historical nationalization of the oil industry, claiming that American talent built it [9][10] Group 4: Humanitarian Crisis - Approximately 15% of the Venezuelan population, around 4 million people, urgently need food assistance, highlighting a severe humanitarian crisis [14] - Food shortages began in 2016, leading to extreme measures such as zoo animals being stolen for food [16] - By 2018, the average Venezuelan had lost more than 20 pounds, and there was a resurgence of malaria in several states [17]

Economic Divide - There is a perception of a growing economic divide in America, particularly between large corporations and small businesses, with large companies benefiting significantly from AI advancements while small businesses struggle [1][2] - Small businesses are facing challenges such as higher borrowing costs, cautious consumer spending, and economic pressures that disproportionately affect them [2][3] Small Business Performance - The percentage of unprofitable small companies in the Russell 2000 has decreased from 40% to 27%, indicating an improvement in the performance of smaller businesses [1] - Small businesses are expected to benefit from tax breaks and incentives, which may manifest positively in 2026 [1] Bankruptcy Trends - US small business bankruptcies reached a record 2,221 year-to-date as of mid-December, marking an 83% increase over the last five years [2] - The rise in bankruptcies reflects the economic pressures faced by small businesses, including the inability to negotiate prices with suppliers compared to larger corporations [2][3] Entrepreneurship and Investment - Entrepreneurship is reportedly at an all-time high, with younger generations seeking alternatives to traditional employment [5] - Access to the stock market is emphasized as a wealth-building opportunity, with 60% of adults participating in retirement programs that invest in the stock market [6][7] AI and Small Business Opportunities - Small businesses are beginning to leverage AI technologies, which can help them operate more efficiently and compete with larger firms [8][10] - The potential for small businesses to attract skilled employees from larger corporations during economic downturns is noted, which could enhance their operational capabilities [9]

RT Nick Szabo (@NickSzabo4)Corporatism vs. socialism: an awful dichotomy, like Odysseus having to choose between having his ships destroyed by rocks if he steered them a bit too far north, and being sucked in by a whirlpool if they went a bit too far south.Innovations at large social scales -- and I daresay I helped a bit with that myself -- have often been a great economic boon for mankind. Innovations in contract law, property law, financial markets, and related areas have, after maturation, often turned ...

Political Commentary - Javier Milei criticizes socialists in the UK for jailing people for social media posts [1] - Milei suggests journalists dislike social media because it challenges their monopoly on information and ability to defame [1] - Milei claims social media holds journalists accountable, which they oppose [1]

Core Points - The Trump administration is engaging in a significant shift towards federal ownership in private companies, particularly in sectors deemed critical for national security, such as semiconductors and defense [2][3][4] - The administration's strategy includes acquiring equity stakes in various companies, which raises concerns about government influence on corporate decision-making and market dynamics [5][14][19] Group 1: Government Interventions - The administration has engineered deals to acquire stakes in companies like xLight, MP Materials, Intel, and others, indicating a trend towards partial nationalization [2][5][10] - A notable deal includes the government taking a 10% equity stake in Intel, making it the largest shareholder, which could influence the company's operations and strategic decisions [5][10][19] - The administration's actions are seen as a move towards "state capitalism," where the government directly influences corporate behavior under the guise of enhancing domestic capacity [4][5][27] Group 2: Economic Implications - The government's involvement in private companies may distort corporate decision-making, as seen with Intel's response to pressure from the administration regarding its operations [14][19] - The acquisition of stakes in companies could create an uneven playing field, disadvantaging smaller firms and startups that do not receive government backing [16][19] - The administration's approach may lead to inefficiencies and complacency in companies that are partially state-owned, reminiscent of past government enterprises [20][21] Group 3: Legislative and Political Context - The establishment of a U.S. sovereign wealth fund (SWF) was proposed, but critics argue that the U.S. does not need such a fund given its existing capital markets and significant national debt [7][8][11] - Congressional Republicans have largely remained passive in response to these developments, despite traditionally opposing such government interventions [2][35][36] - The potential for future Democratic administrations to leverage these government equity stakes for progressive agendas raises concerns about the long-term implications of current policies [37][38]

Economic Systems - Capitalism, not socialism, is presented as the primary driver of prosperity in Scandinavian countries [1]

Economic & Social Commentary - Large-scale innovations, particularly in contract law, property law, and financial markets, have historically benefited economies, but require discarding non-beneficial innovations [2] - Current advancements in blockchains, smart contracts, and AI are expected to further improve global economies through trust-minimized institutions [2] - Over-emphasis on large scales in politics and economics, especially through remote trust-based institutions like governments and corporations, has contributed to cultural issues [3] - A shift in focus towards smaller social scales is needed to reduce reliance on trust in strangers, emphasizing local communities and traditions [4][6] - Instead of prioritizing narrow economic goals like GDP, more attention should be given to aspects of life closer to individuals, ensuring economic institutions protect smaller-scale institutions [5] Community & Institutional Dynamics - The industry suggests fostering communities with shared understandings and traditions to enhance communication and protect them from disruptions caused by corporations and governments [6] - Protecting long-standing religions and non-commercial traditions from globalization's disruptions, such as immigration, is crucial for community preservation [6] - The industry advocates for prioritizing the formation, growth, and protection of families and communities with long-shared understandings [6]

Economic & Social Commentary - Large-scale innovations, particularly in contract law, property law, and financial markets, have historically benefited economies, but require discarding non-beneficial innovations [2] - Current advancements in blockchains, smart contracts, and AI are expected to further improve global economies through trust-minimized institutions [2] - Over-emphasis on large scales in politics and economics, especially through remote trust-based institutions like governments and corporations, has contributed to cultural issues [3] - A shift in focus towards smaller social scales is needed to reduce reliance on trust in strangers, emphasizing local communities and traditions [4][6] - Instead of prioritizing narrow economic goals like GDP, more attention should be given to aspects of life closer to individuals, ensuring economic institutions protect smaller-scale institutions [5] Community & Institutional Dynamics - The industry suggests fostering communities with shared understandings and traditions to enhance communication and protect them from disruptions caused by corporations and governments [6] - Protecting long-standing religions and non-commercial traditions from globalization's disruptions, such as immigration, is crucial for community preservation [6] - The industry advocates for prioritizing the formation, growth, and protection of families and communities with long-shared understandings [6]