The country that was once praised by UK’s Jeremy Corbyn and hailed by US’s Bernie Sanders, has officially become the poster child for socialism and it’s disasters. Jeremy Corbyn once said that the United Kingdom should learn from socialism, but now hides his former public words of admiration for Hugo Chavez.
How can they be blamed for trying to forget that they once loved Chavez? The incredible inflation, horrible unemployment rate, and empty store shelves should serve as a learning lesson for the world. Socialism does not work.
In a recent showing of the disheveled country state, Venezuela’s President Nicolas Maduro has promised to increase the monthly allowance for pregnant women to 700,000 Bolivars.
Sounds nice? Well, not quite. According to CNN, with inflation, that amounts to $3.38.
But there is hope! Once women give birth their monthly allowance will increase to $5.
No one knows why the President has decided to increase the monthly payment for pregnant women.
Perhaps, it may be due to the increasing amount of starving children. Overall, 73% of the population has lost about 19 pounds due to food shortages. 81% of households live in poverty, and inflation is predicted to increase past its already 2,600%.
The nation’s livelihood depends on oil, as it brings in 95% of the nations foreign currency, and the outputs of Venezuelan oil have decreased 29% throughout all of 2017.
The Venezuelan government officially blames opposition groups for the failing oil industry, without any evidence.
They also claim that they will start producing 2.5 million barrels a day. However, the Wall Street Journal reported that economists think that currently there is only a path of continued decrease in production for Venezuela.
While the depressing monetary issues are to do with the dropping output of oil, the true culprit of mass poverty and starvation can be blamed for the socialist policies of the government. President Maduro has been leading a purge within the state-run oil company, PdVSA. 70 managers have been imprisoned, being replaced by generals with no oil industry experience.
Foreign companies have stopped working with PdVSA, have dropped their participation to a minimum because of over-taxation and the instability of the country. The only “major” oil producer in the country could have benefited from the strong global oil market last year, but instead suffered because of increasing its prices.
Although the new chief of PdVSA, National Guard Gen. Manuel Quevedo, believes that oil production will increase, debtors are starting to seize oil shipments because of the country’s failure to pay. If Venezuela defaults on more debts, Venezuelan oil will be targeted, possibly crushing the industry.