One thing I have noticed through my whole life is that having oil reserves causes bad luck for many countries.
Oil brings large incomes to anyone so this doesn't make sense. Why would something that brings you a lot of wealth cause your country to suffer.
Well, perhaps the reason is to do with balance. It could be like a bad diet, a man could eat loads of donuts every day and get many calories but would become sick because his body can't metabolise all the calories. The way I look at it is bringing oil causes more transactions to occur with bigger amounts of money. This forces the banks to print more money. The printed money makes the currency less valuable so the people that don't have much money will spend less because their money is worth less. Perhaps the oil money causes corruption. It sounds silly but when you think about it, it makes sense. I was thinking about this because Venesuala has large oil reserves but has drifted into a bad financial situation.
