Author Topic: Article on Inflation in Venezuela  (Read 199 times)

Country Singer

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Article on Inflation in Venezuela
« on: September 26, 2018, 10:49:12 PM »
Pretty good read about how bad inflation is in Venezuela.

I'm beginning to wonder if we should have a subforum for articles about Venezuela where we can lump the several years worth of posts together.  From a researcher perspective, it would be much easier to study how the wheels came off...and then rolled down the hill and off the cliff.


Edit to add: There's some real "Big Brother" stuff in there.  Make sure to read the description of the "ID of the Fatherland" being tied to gas purchases.
« Last Edit: September 26, 2018, 10:59:24 PM by Country Singer »
“Our country demands all our strength, all our energies. To resist the powerful combination now forming against us will require every man at his place.
If victorious, we will have everything to hope for in the future. If defeated, nothing will be left for us to live for.”

John Galt 1

Re: Article on Inflation in Venezuela
« Reply #1 on: September 27, 2018, 11:28:04 AM »
Lots of oil was discovered in Venezuela.     In 1999 Hugo Chavez began to use the oil money to turn Venezuela into a socialist welfare state.      He nationalized much of Venezuela's oil industry and used the money to keep the population happy.        By 2006 corruption and graft in the government run oil industry was reducing output.       Then oil prices dropped so a population that was used to all sorts of freebies had a lot less.

Corruption and oil output continued to get worse so less money as the years went by.         Venezuela's government kept passing new taxes and regulations in an effort to raise money placing more burdens on the businesses in the country.      Strikes by oil workers started in 2002 and kept getting worse haven't helped the situation.       Now they don't have many parts they need to keep the oilfields running.

As pay and benefits reduced other workers went on strike until the economy was a dysfunctional mess.      The government kept passing more regulations making the matter worse and you see what the result is.

Kingsberry

Re: Article on Inflation in Venezuela
« Reply #2 on: October 01, 2018, 07:13:35 AM »
Socialism strikes again. I feel bad for the people of Venezuela, but they need a healthy dose of capitalism and deregulation over there. Nothing's going to change until that happens.