Venezuela is an example of what happens when you base your entire government spending on oil exports, prices drop, you refuse to adjust your spending in response, and resort to violence to silence critics of your spending. It has little to do with social welfare policies, or capitalism really, and much more to do with the pride of Chavez and Maduro, and a failure to diversify the economy to support social welfare policies.

The U.S., in contrast, is not only the largest oil producer in the world but also the largest economy in the world, and therefore much better diversified and suited to roll out enormous social welfare policies.