Venezuela’s Economic Fall



Brooks Farish

IHSS

Venezuela’s Economic Fall

Venezuela is a South American country that has a deeply troubled economy. The cause of the economic decline in Venezuela is attributable to a decline in the price of oil coupled with the reduction in the volume of oil produced. The countries economic problems are also due to government lead mismanagement at the highest levels, especially the current dictator Maduro. Evidence of the economic decline in the countries GDP has declined by an average of 15% per year from 2015 to 2017. The government has responded with tightening currency controls which have resulted in the currency of Venezuela, the Bolivar, losing 99.9% of its dollar value, making it basically worthless. The citizens of Venezuela have experienced hyperinflation with prices of goods and services increasing 112% in 2015, 2,400% in 2017 and over 13,000% in 2018 (Flannery). In an effort to escape government prosecution and extremely difficult circumstances including food shortages, lack of medicine the people of Venezuela have started to leave in search of a better life. My analysis for this article has a positive outlook because I believe it is set up well to show you past data and issues so that it can introduce what Juan Guaido, the new person in power, plans to address. Without articles like these, it would be difficult to know the mindset and words of people in power, these articles help spread their thoughts. My favorite contribution to this article is the Bloomberg "Cafe Con Leche Index". The index graph nicely shows you an idea of how crazy Venezuela's inflation can get. At no fault of the article or the author, I feel that I know that Juan Guido wants to address these major issues with Venezuela but I would like to know more of the specifics of how she plans to do that. Another bit of information I feel that is needed in this article is the Venezuelan Exxon oil project conflict. Personally, I feel that the conflict sparked Venezuela's decline so I feel that it is needed. All in all, I think it was a great article!


Sources




Laya, Patricia. “Venezuela’s Collapse.” Bloomberg.com, Bloomberg, 23 Jan. 2019,
    www.bloomberg.com/quicktake/venezuela-price-revolution.

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