Their oil industry also fell apart because people who don't know how to manage oil fields took over. Combine that with the development of fracking in the States, Venezuela's top customer, and they were doomed. Their government may not have taxed the rich to death, but they also highly regulated all business and made it difficult to turn a profit. The result was a lot of educated Venezuelans left, and left primarily the very poor and uneducated who were dependent on government payments and not much to spend it on.