Half of Venezuela’s Economy has Disappeared Since 2013
We noted Venezuela’s collapsed as a country last fall, it no longer has democratic elections. The latest is the country has officially lost half of its economy since 2013.
According to the International Monetary Fund, Venezuela’s inflation is at an all-time high with the prices of goods expected to skyrocket by 13,000% and unemployment will reach 30% this year.
Last year alone, inflation rose above 4,000%.
“This year will mark the third consecutive year of double-digit contractions in Venezuela’s gross domestic product, the broadest measure of economic activity. The nation’s GDP declined 16% in 2016, 14% last year and it’s projected to fall 15% this year, according to the IMF,” writes CNN Money.
The socialist country has been in a state of chaos ever since Hugo Chavez introduced the socialist political system back in 1999 and President Nicolás Maduro has followed in his footsteps. The country, even though it’s rich with oil reserves, proves that socialism can’t be successful.
Last week, Maduro, in a desperate attempt for support, announced that the government would start giving 700,000 bolivars a month to pregnant women. However, this is only worth $3.83 at the current exchange rate and the pregnant women must have Venezuela’s new national ID card, a symbol of support for Maduro.
Apparently, he has plans to distribute more hand-outs like he has done so in the past.
“He has raised Venezuela’s monthly minimum wage several times in recent years. In November, he gave out a “Christmas voucher” worth 500,000 bolivars (roughly $12 at the time, but about $2.74 now) to 4 million families,” writes Channel3000.com. “The president often claims he’s trying to aid Venezuelans as the United States and other nations wage what he calls an “economic war” against his regime. Independent economists say government mismanagement, unsustainable policies and widespread corruption have crippled the nation of 30 million people.”
The dire state in Venezuela has morphed into not only an economic, but also a political and humanitarian crisis.
Other world powers are attempting to step in. The EU recently decided to deny entry visas and seize financial assets of Venezuelan officials and their families being held in European banks.
Maduro’s is seeking a second term and has devised a fake election that will be held this spring– which is merely a ploy so the country appears less like a dictatorship. However, the government has made it so that opposition leaders have been barred from the election.
It’s unclear who will be actually “running” against Maduro.
Most countries have called the election as a sham and reject it. The 12-country Lima Group, which includes Latin America’s biggest countries, has condemned the election and issued a statement “saying that Maduro’s planned election without independent electoral authorities and credible international observers, and prohibiting all major opposition leaders from running for office “will lack legitimacy and credibility,” writes the Miami Herald.
Heather Nauert, the U.S. State Department spokeswoman rejected the “snap” election as unfair and called on “Maduro’s regime to respect the human rights of its citizens and to return to democratic constitutional order,” reports Fox News.
Author’s note: So many countries agree that the election will be rigged, just like it was last year. Just when you think Venezuela has hit rock bottom, the country falls further. The economy has been cut in half, yet it has the biggest oil reserves in the world.
Editor’s note: This is hard to watch, one of the most vibrant countries in the world suffering because its leaders have attempted to implement socialism. I’m not sure Venezuela will ever be its former self, and it appears that they have much suffering to do in the meantime.
We are hoping that other Latin countries are watching this (which seems to be the case) and will not copy Venezuela’s example. This government has no idea how to run a country and it will not be able to change. It appears it will have to be overthrown.