Earlier quoted context omitted.
Several countries that are fairly socialist have higher living standards than the U.S., where "socialism" is an epithet for some reason. McCarthy lives on I suppose. Venezuela's problem is totalitarianism . In a socialist country, it is possible for the government to be governed by law and have limits placed on its power. That is not what's been going in in Venezuala.
Those successful European countries let the economy operate and tax it. Venezuela runs the economy, including setting prices of basic necessities, which then become unavailable because it turns out the government cannot set those the way it thinks it can.
The latter is an imposition of structure irrespective of the market: It might be seen more as a rigid body that can stand in certain conditions but begins to buckle once the wind changes.