No, it really doesn't.
Can you give an example of a first world country where this has happened?
Sure.
From the 1950s to the early 1980s, the Venezuelan economy, which was buoyed by high oil prices, was one of the strongest and most prosperous in South America.
Then socialism came along. Now 94.5% of the population is living in poverty based on income, out of which 76.6% lives under extreme poverty, the highest figure ever recorded in the country.
Now theyre eatin rats.