ipl-logo

Cause Of Hyperinflation In Venezuela

1202 Words5 Pages

Introduction
Venezuela is a country that is experiencing a high inflation rate in the world today. It’s inflation rate has reached up to 800 percent, marking it the worst economic crisis in it’s history. The hyperinflation has made Venezuelan Bolivar’s value to degrade tremendously and it is nearly worthless. The people in Venezuela are lacking the basic necessities for survival which has led them to turn towards bitcoin minding as an alternative.

In this essay, I would like to discuss what was the cause of the hyperinflation in Venezuela, how it has impacted on the society and the economy. Also, I will discuss on the current situation of Venezuelans’ measures taken to persevere .

Economic Concepts, Models and Application to Venezuela’s …show more content…

The food inflation averaged 65.68 percent from 2009 until 2015. However, the cost of food reached it’s highest of 315 percent in 2015. It has make it so hard for the people to afford the basic need of survival, food. Also, there is a lack

The economy has crushed and corruption has sought with criminal allegations reaching the highest levels. Violence has increased and the citizens’ daily life goes harder by the hour. The shadow of starvation and criminal activities threaten the government of Nicolas Maduro, three years after he was bequeathed power by the passing of Hugo Chavez.

In the latest news, Venezuelans are mining bitcoin as a temporary solution to survive. It has become so hard to even afford anything in the black market. Although, bolivars does not have much worth, everything that is sold is overly priced. The Bolivarian socialism are freezing prices of everything that when they froze the price of toilet paper, the country ran of it. After all, Venezuela’s electricity market is heavily subsidised under Nicolas Maduro’s rule that it’s almost free making electricity more affordable than basic necessities. It had created a window of opportunity for bitcoin miners. A miner who is able to run several bitcoin mining devices is able to make enough to purchase items like diapers and insulin …show more content…

One of the main reason is the socialism system that was started by Hugo Chavez, former president of Venezuela. The programmes and food subsidies only benefited when the oil prices were on it’s record peak. When the prices of one barrel of oil dropped to $26 per barrel, along did it’s total revenue. The subsides implemented were not able to function anymore . This leads to the next problem of the country’s economic failure, oil dependency. Venezuela is highly dependant on it’s oil production that it diversified neither its economy nor its electricity supply. Also, the excessive printing of money did not help in any way but losing it’s value and brought the country down with it. Venezuelans are unhappy with the lifestyle they have been facing up till this day. Will Venezuela be able to fight and end the hyperinflation like how Zimbabwe

Show More
Related

Analysis Of Midnight In Mexico Alfredo Corchado

253 Words | 2 Pages

As he recounts it in Midnight in Mexico Alfredo Corchado’s experience exemplifies the failures of development and the decline of one-party rule under the PRI. In the book Corchado speaks of how he remembers as a child that Mexico was always on a verge of a great political change and country transformation. Yet he noted that it had never come indicating the people of Mexico also felt as if the change would never come as well. He also cites that in January 1994 people of Mayan descent would rebel against the government because they believed the government only acted in the interests of the privileged few and ignored the poverty and trampled on traditions.

Read More

The Pros And Cons Of Feeding America

380 Words | 2 Pages

When prices rise, consumers often move to cheaper, less-nutritious foods, increasing the risks of micronutrient defects and other forms of malnutrition, which can have long-term unfavorable effects on people’s health, development and productivity. Hunger

Read More

Stuffed And Starved Summary

1540 Words | 7 Pages

In the world, there are one billion people undernourished and one and a half billion more people overweight. In this day and age, where food has become a means of profit rather than a means of keeping people thriving and healthy, Raj Patel took it upon himself to explore why our world has become the home of these two opposite extremes: the stuffed and the starved. He does so by travelling the world and investigating the mess that was created by the big men (corporate food companies) when they took power away from the little men (farmers and farm workers) in order to provide for everyone else (the consumers) as conveniently and profitably as possible. In his book Stuffed and Starved: The Hidden Battle for the World Food System, Patel reveals his findings and tries to reach out to people not just as readers, but also as consumers, in hopes of regaining control over the one thing that has brought us all down: the world food system.

Read More

The Importance Of Education In Enrique's Journey

537 Words | 3 Pages

However, the principal problem for the Latin American population is the lack of education. Education is the basic reason of the problems in Latin America. The first cause of low attendance to school for Latin America children is hunger. Indeed, most of the children from Latin America drop school after a few years because they need to help with the economy at home. Some children stay at home to take care of the

Read More

Essay On Mexico Cartels

613 Words | 3 Pages

Mexico’s drug cartels are the worst they have been in years, and all the problems stem from a lack of proper decision making from the government at every level . Since Colombia was taken away from the drug scene, Mexico’s cartels have made up for the slack and then some. Subsequently, cartels in Mexico also began to flourish at a time when Mexico was in the process of instituting a new form of government. Not only is Mexico trying to work out the kinks of their new democracy, but the cartels are pushing more drugs than ever before; Mexico needs to address this problem. To make matters worse, a number of Mexican officials are corrupt, unaccountable, or distrusted by the people.

Read More

Why Some People Think That Puerto Ricos Should Stay

644 Words | 3 Pages

Moreover, the raise o the oil crude tax to a 68% complements the collapse of Puerto Rico’s economy because all the products consumed on the

Read More

Controversy Over Bitcoin's Cryptocurrency

1417 Words | 6 Pages

Bitcoin is a virtual currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Bitcoin works with no middle men, which implies that bitcoin works no banks to run and no security to check the system to see fraud and broken laws. Bitcoin should not be allowed to be a future currency. Bitcoin can make money laundering worse, it can make counterfeiting worse and it can make more private money companies that could surpass the law.

Read More

Relationship Between USAd Venezuela

659 Words | 3 Pages

The relationship between the U.S. and Venezuela has been marked, perhaps, by dramatic signs at various times, but despite them, it has also been characterized by high constancy that even could be described as consistent and growing. Several Venezuelan governments reiterated nationalist speeches and protest actions on U.S. investments and properties, most of them linked to oil issues, but also have created conditions of stability and harmony among them. Recently relations between both countries have been exacerbated mainly by the Venezuelan government, including threats, open or veiled "breaks" but have not been further declarations and similar demonstrations by the government and the U.S. Congress. This relationship has an inconsistent behavior

Read More

Food Insecurity In America Essay

594 Words | 3 Pages

According to the Economic research service of the U.S department of Agriculture that the family had at times, “limited or uncertain access to adequate food, caused by either economic or social conditions.” In other words the family didn’t always have enough food to feed everyone. Among households with children, one in five 7.8 million households were food insecure. (Hunger Pg.1) How can so many Americans be hungry in a country whe4re obesity is an

Read More

Eco 372 Week 2 Music Video Reflection

773 Words | 4 Pages

The sources that provided me with the majority of my information were Ghana Volunteers’ “Micro Financing” article and Armstrong Economics’ “Hyperinflation-Venezuela” article. The process to create my music video was a long one and I worked on it for days. I used WeVideo, WeVideo is really easy to use and you can insert images or videos, audio, captions, filters, and you can

Read More

Informative Essay: The Food Industry In America

1260 Words | 6 Pages

The Food Industry The food industry is the worldwide diversified industry which has to do with anything relevant with food from food education to marketing but principally the industry produces and or provides food to essentially all people on the planet. The only people who are excluded from the food industry are self-sustaining farmers and hunter-gatherers. It is one of the largest industries in the world and continues to grow because people need food and the population is increasing every day. In America, the food industry possesses such an important role, yet there are so many problems within the industry which is ruining the society as we know it.

Read More

The Exception Of The Underground Economy In The United States

563 Words | 3 Pages

The underground economy is full of those who cannot find a full time job, with this being done people will turn to anything that will pay them with no record or taxes taken out. In the last year estimates show that around two trillion dollars is being brought into the economy through the shadow economy (Koba, n.pag) The job hunt shrinks more and more everyday day due to mass unemployment rate. Lifestyles are being changed, due to fewer jobs, lower pay, expensive mortgages. Because of this just in 2009, $600 billion dollars in unreported economic activity was spent by the government in tax revenue.

Read More

Informative Speech: Bitcoin And Other Cryptocurrency

835 Words | 4 Pages

In recent years Bitcoin has invaded the internet giving people the chance to earn money without lifting a finger. II. Thesis: Every year since 2009 Bitcoin has been growing its own international economy without any government regulations. III. Preview: Today we are going to talk about what bitcoin is and how it works, why people like/don 't like it, and the possible regulations of cryptocurrencies.

Read More

The Four Causes Of Inflation In Trinidad And Tobago

1729 Words | 7 Pages

Inflation is the rate at which the general level of prices for goods and services is rising, and, then purchasing power falling over a period of time. When price level rises, dollar buys fewer goods and services. Therefore, inflation results in loss of value of money.

Read More

Literature Review Of Inflation

1055 Words | 5 Pages

Inflation rate of 1-2% per year are acceptable and even desirable in some ways (Investopedia, 2015). If the inflation rate goes up higher than 3% per year, it might be dangerous as the currency will devalue. According to (Forbes, 2014) the country with the highest rate of inflation is Venezuela, with current inflation rate of 57.30%. There are different types of inflation which are cost-push and demand-pull inflation (Investopedia, 2015). Cost-push inflation happens when we face higher prices due to the increase in cost of production and higher costs of raw materials.

Read More

More about Cause Of Hyperinflation In Venezuela

Related Topics

Open Document