Venezuelan economic crisis worsens

marcha_hacia_el_palacio_de_justicia_de_maracaibo_-_venezuela_111

By Brian Zamora

Venezuela is currently suffering from its worst economic crisis. The Latin American country is in the midst of a recession, and severe food shortages. President Nicolas Maduro has also called a national state of emergency due to the crisis.

The government has started rationing electricity and food. With the declaration of a state of emergency, Maduro is granted the power to invalidate congressional authority to review key budgetary issues or issue motions of censure against his cabinet.

The state of emergency also authorizes the military to have a greater role in controlling public order. With three Caracas universities reporting that over 70 percent of the total population in poverty, one thing is clear: there is no end in sight for the Venezuela crisis.

The crisis first arose as a result of the economic policies of Venezuela’s late president Hugo Chavez. By using revenue from the nationalized oil industry to pay for social welfare benefits for the citizens, Chavez failed to save money for later times and discouraged private industry.

Not long after president Maduro took office in 2013, he began to feel the pressure of the nation’s decline. According to The New York Times, oil prices fell sharply by 50 percent from 2014 to 2015. Venezuela’s earnings plummeted that year, from about $80 billion in oil in 2013 to a projected $20 to $25 billion in 2016.

Oil profits are crucial for the country, as they provide the Venezuelan national government with foreign currency that is distributed to domestic oil producers through a multi-tiered currency exchange market, according to the New York Times.

As a result, Venezuela’s economy has crashed, its citizens have started to live under poverty, and the entire country is living in turmoil.

The country is also troubled by political struggle for power, where the United Socialist Party of Venezuela controls the Supreme Court and all national institutions. Meanwhile, the National Assembly, is controlled by opposition parties that Maduro suspects of treason, according to the Huffington Post.

“Such a crisis, especially a poorer country in Latin America, should make the American people stand up and give the country some help,” junior Jason Perez said.

Venezuela is currently suffering from its worst economic crisis. The Latin American country is in the midst of a recession, and severe food shortages. President Nicolas Maduro has also called a national state of emergency due to the crisis.

The government has started rationing electricity and food. With the declaration of a state of emergency, Maduro is granted the power to invalidate congressional authority to review key budgetary issues or issue motions of censure against his cabinet.

The state of emergency also authorizes the military to have a greater role in controlling public order. With three Caracas universities reporting that over 70 percent of the total population in poverty, one thing is clear: there is no end in sight for the Venezuela crisis.

The crisis first arose as a result of the economic policies of Venezuela’s late president Hugo Chavez. By using revenue from the nationalized oil industry to pay for social welfare benefits for the citizens, Chavez failed to save money for later times and discouraged private industry.

Not long after president Maduro took office in 2013, he began to feel the pressure of the nation’s decline. According to The New York Times, oil prices fell sharply by 50 percent from 2014 to 2015. Venezuela’s earnings plummeted that year, from about $80 billion in oil in 2013 to a projected $20 to $25 billion in 2016.

Oil profits are crucial for the country, as they provide the Venezuelan national government with foreign currency that is distributed to domestic oil producers through a multi-tiered currency exchange market, according to the New York Times.

As a result, Venezuela’s economy has crashed, its citizens have started to live under poverty, and the entire country is living in turmoil.

The country is also troubled by political struggle for power, where the United Socialist Party of Venezuela controls the Supreme Court and all national institutions. Meanwhile, the National Assembly, is controlled by opposition parties that Maduro suspects of treason, according to the Huffington Post.

“Such a crisis, especially a poorer country in Latin America, should make the American people stand up and give the country some help,” junior Jason Perez said.

 

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