Venezuela is a socialist country located in northern South America. It had recently become a big part of international affairs due to the country being rich of oil and for being politically stable. Despite this though, based on news and many articles exposed in the media, Venezuela has been facing an economic crisis causing many people to flee the country. Many people have also been blaming the decline on their former president Hugo Chavez, claiming that Venezuela became a country full of inequality when Chavez came into power.
Backtracking to the roots of the predicament the country is in, Venezuela was oil rich. Oil prices dropped and the country began to lack basic needs, electricity, shelter, and the biggest food shortage in years. This provoked civilians to protest violently causing the inflation to increase more frequently. Statistics have even shown that the Venezuelan inflation rate is about to hit 1.37 percent this month as the government fails to pay its debt. The current president, Nicolas Maduro, made the crisis worse by increasing the minimum wage 24 times to what it used to be leaving it less than 20 dollars a month. Based on accounts this fall in wages caused the Venezuelan economy to decrease by 30% between the years 2013 to 2017. The accounts also reported that in just 2018 the economy decreased by 18%. This law also caused many companies to drop their workers due to them not being able to pay them. The crisis has gotten so bad that studies found that foreign reserves went from being 30 billion dollars to 10 billion dollars. Based on all the economic decline it is no surprising that not even the average person can afford to live in Venezuela. As seen with all the statistics and information Venezuela’s horrid economic crisis has been caused by having a corrupt government, which now caused their people to struggle to live in their own homes.
Although Venezuela has the most attention for inflation, other countries have faced it greatly as well in the past or present. It has been seen in other nations such as Ghana, Ukraine, Liberia. Etc. Countries have even had bigger cases of inflation as hyperinflation such as Hungary or Zimbabwe. People in Venezuela are reacting the crisis by fleeing, according to united figures, “2.3 million venezuelans have already left Venezuela since 2014 because of the economic crisis increasing”. Most Venezuelan citizens have moved to their neighboring country Colombia but some tend to move to other south american countries like Chile, Peru, Brazil and Ecuador. The huge migration is one of the largest yet
Those staying in Venezuela are blaming both President Hugo Chavez and Nicolás Maduro. The people say Chavez may have been trying to help the poor but they say Venezuela was a place of huge inequality when Chavez came in to power in 1999. Maduro has tried fixing the crisis but nothing has worked. Venezuela is currently ranked as the 23rd highest ever recorded inflation cases. The country is running out of options and many people keep on evacuating.
Although Venezuela has the most attention for inflation, other countries have faced it greatly as well in the past or present. Many occuring due to war or just an unfortunate mishap with mother nature. Examples of hyperinflation would be Hungary. Hungary is a country located in Central Europe and fought against the soviets in World War 2. When the war ended with the Soviet countries defeating many countries including Hungary, Hungary had to pay for reparations for the Soviet countries. Due to this loss the country developed inflation. The decline was so bad the inflation rate was 13.6 quadrillion percent per month. Another example, connected to the Hungary inflation would be Germany. Germany is a country located in Western Europe. Just like Hungary, Germany was part of World War 2 and was defeated by the Soviet countries. Due to this, Germany wasted a lot of money on the war and had to repay reparations for all Soviet countries. This took a toll on the economy and led Germany to print out money just like many other countries that have faced inflation did. The money printed didn’t help and ended up leading to hyperinflation. The inflation rate got as high as 30,000 percent monthly. Another example of hyperinflation would be Zimbabwe. Zimbabwe is a country located in Southern Africa. Zimbabwe’s political changes and drought caused the economy to crash. The president, Robert Mugabe, just like several other leaders in the world attempted to better matters by printing out more money, but the attempt simply made matters worse just like in many other countries. The inflation became so bad that the country’s inflation rate went at 79 billion percent per month. The last example of inflation would be Iran. Iran is a country located in Western Asia. Iran’s a country full of religious and territorial disagreements and like Venezuela profited off of their lands oil. Due to these 2 issues the economy failed. Iran’s inflation rate went up to more than 50% monthly. So, based on this information it is shown that not only did Venezuela suffer from inflation but several other countries faced inflation as well globally.
Therefore, Venezuela and several other countries have struggled with inflation mostly due to the corrupt governing from leaders and social disagreement happening between nations.
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