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Podcast Host / Interviewer (0:39)
Houseman is definitive on his Venezuela Ricardo, I want to go back before your claim at Harvard, before your public service decades ago to your Venezuela. How did the Houseman family get from a World War II Europe over to Venezuela? How did your family emigrate to Venezuela a lifetime ago?
Ricardo Hausmann (1:04)
Well, a Jewish family, my father, they both went through the Holocaust. My father lost both his parents. He arrived at Venezuela at age 17 with some he managed to get himself to Spain. And then everybody in Spain thought that he Hitler was going to take over Spain. So he ended up with another relative in Venezuela. And my mother lived through the German occupation in Belgium and she was freed by USGIS in September 1944. She was living with a Catholic family in a village in the south of Belgium until they were liberated. She lived for over a year there. After, after, as you know, they got the papers to go to the train station in 1942. So that's how they ended up in Venezuela. And in Venezuela they had, they created a really, really nice life for themselves. And so when I grew up, Venezuela was this heaven. And well, I have this image of Europe as this horrible place where my parents had come right from.
Podcast Host / Interviewer (2:21)
Right I look Professor Houseman. And again, this is part of the story, folks, from Venezuela to the tip of Argentina. Your economist essay written yesterday for Zani Mint and Better is absolutely scathing. You say the president of the United States is, quote, delusional. What does President Trump get wrong?
Ricardo Hausmann (2:42)
Well, he thinks that extracting oil from the ground is a technical issue. But extracting oil from the ground, if it was a technical issue, Venezuela would be a powerhouse. But the reason why oil production in Venezuela collapsed as so many other things collapsed is because oil is a long term investment proposition. You have to part with a lot of money and wait until you get a cash flow to recover that money over a very long period of time. And in that long period of time, you have to be assured that you have some property rights that are going to be respected. And if he thinks that right now he's going to recover oil production because he's going to tell us major companies to go out and part with billions of dollars in Venezuela in the context of an illegitimate government because Maduro stolen election. But this woman who's now president of Venezuela, she didn't even win a pretend to win an election. She was appointed by a guy who stole an election. And he's going to give concessions that have no approval in law by any national assembly that was elected by anybody. And you would expect that the moment they will go back to democracy that any of those conditions are going to be respected by a new political majority. So I think that there is the democracy is not a goal to be put after economic recovery. Democracy is an instrument of economic recovery. It's the way of telling Venezuelans your rights will be protected. Go back and you know, dream. Go back, try to capture what you.
