What caused their inflation rate to skyrocket?
@AlwaysDownvotesAnime, embracing socialism.
@AlwaysDownvotesAnime, @ThatGuyx79, thinking that socialism hadn’t worked before because no one has done it right before, so they did it right. And that’s how their inflation got so bad
@AlwaysDownvotesAnime, inflation inflation
@AlwaysDownvotesAnime, Imperialistic intervention by American backed institutions, designed to destabilise their country for daring to stand up to the US.
Kidding. It was socialism.
@AlwaysDownvotesAnime, socialist policy based entirely on a state run economy relying heavily on their natural resource of oil. When the oil [money] dried up, they had nothing and started printing money to pay for things, causing hyperinflation out the wazoo.
In the past, even ten years ago, Venezuela was the posterchild for socialists to point out as a “proper” socialist country, but all it has proven now is that socialism can only work if you have a highly valuable resource and strong economy to build on top of, but once that resource dries up, shjt hits the fan.
Sad really, those innocent people deserve better. I’d be perfectly fine to threaten to use our military might to boot out their current dictator’s cronies and put in charge the president we and the west recognize as the just and rightful ruler who is by far more popular amongst the people. But that’s my personal opinion
@AlwaysDownvotesAnime, looked it up, 1 usd is roughly equal to 10 Venezuelan bolivar
@Sven and Otar, their oil reserves havent dried up. Following the recession in the 2000's into the 2010's the price of crude oil dropped from nearly $160 per barrel to $80. This practically cut their Exports and GDP in half overnight. They still have their off shore reserves which is why the US gov't even gives half a shjt about what's happening there today
@aminalFacks, at the start of the year that may have been true but since then their inflation has gone up some 1,300% and the value had their dollar has decreased 1,600 times.
@Nellybert , but MUH POWERGRIDS
@ThatGuyx79, they didnt diversify their economy enough. Has nothing to do with their governmental style. They put all their value in oil, the price of oil dropped in half. Their economy tanked. Earlier this year they tried just printing more money, a tactic used solely by idiots, and here we are.
@AlwaysDownvotesAnime, see my other comments. Their socialism failed but their over reliance on their oil reserves is what tanked their economy
@TheWhiteWolf, I’d disagree on that.
Socialism only works when you have a strong economy to begin with. The reason the Scandinavian countries can get get away with their more socialist policies is because they have strong export economies as is.
Socialism always adds weight and slows down economies, some socialist programs 100% make sense like militaries, roads, schools, etc., but the more weight you put onto the system (and tax appropriately to pay for it), the more cumbersome your economy becomes and the less able to compensate for changes in the economical environment.
While oil and how their economy was built around it was the primary cause, the secondary cause was the socialist structure of their economy
@TheWhiteWolf, I appreciate the correction, I wrote this around 1:00am after a 10hr shift and was pretty tired
@Sven and Otar, I'm not trying to argue socialism does work. The fact they nationalized their oil industry in the first place may have resulted in their over reliance on it. I was just trying to point out why it was their economy tanked so dramatically.
@TheWhiteWolf, gotcha, I’m just quibbling with the fact that you said it had nothing to do with their governmental style
This is perfect
I laughed way to hard at this
Must've splurged for the turbo
Is this that inflation porn I've heard so much about?