Children Dying In Venezuela... Inflation 1500%

[Decodekid 30,624]

13 minutes ago, GloriousRomance said:

But why arent they spending their coins on Come to Mama? that's the real question xoxo

disgusting 

[Zombie 1,218]

24 minutes ago, zerojk said:

Their president should literally be in jail, so sad

Seriously,, ive meet a lot of ppl for Venezuela (that literally escape from there) is so crazy , **** poor people

[GloriousRomance 148]

28 minutes ago, Decodekid said:

disgusting 

sorry, i didnt realise it was actually pretty serious! x

[MonsterPaws 2,745]

That's horrible 

IDK much about Venezuela's social and political status, but I hope things get better for its people.

[Economy 52,842]

12 hours ago, Smarticle said:

The Venezuelan economy heavily relies on oil, so the collapse in oil prices in recent years hit the country hard, resulting in a balance of payments problem.

Yikes, is there some way to bounce back?

Oil alone wouldnt cause this, it merely exacerbated the situation

 

For many years Venezuela has been socialist which means the Government taxed more and spent more and also had more reguations and control over private sector

 

For socialism to work the Government needs to be smart on how they invest the money and what kinds of rules they put on companies

 

Socialism because it involves making the Government bigger and more powerful it makes them accountable to more responsibility

 

But Venezeula was extremely inneficient in how they spent their money. They spent on stuff that was luxuries and failed to invest in nevesaairy longer term investments

 

They sucked resources away from private sector and companies that they blew on nothing useful

 

As a result Private sector was left with less to invest without getting any benefits from better educated people and better infrastructure to make up for it

 

Everything was just wasted. The Government was really incompetent at handling the resources. 

 

If a Government cant handle the Responsibility, then its better to make Government smaller and be more capitalist

[Luc 4,776]

25 minutes ago, Economy said:

Oil alone wouldnt cause this, it merely exacerbated the situation

 

For many years Venezuela has been socialist which means the Government taxed more and spent more and also had more reguations and control over private sector

 

For socialism to work the Government needs to be smart on how they invest the money and what kinds of rules they put on companies

 

Socialism because it involves making the Government bigger and more powerful it makes them accountable to more responsibility

 

But Venezeula was extremely inneficient in how they spent their money. They spent on stuff that was luxuries and failed to invest in nevesaairy longer term investments

 

They sucked resources away from private sector and companies that they blew on nothing useful

 

As a result Private sector was left with less to invest without getting any benefits from better educated people and better infrastructure to make up for it

 

Everything was just wasted. The Government was really incompetent at handling the resources. 

 

If a Government cant handle the Responsibility, then its better to make Government smaller and be more capitalist

Socialism and capitalism isn't the problem here. If it was insufficient spending that was the problem they'd have a situation like in Greece.

The real problems here are that they didn't diversify their exports which they heavily relied on for govt spending, they print money to make up for the loss in oil revenue which caused (hyper)inflation. They need to stop the inflation first and foremost, hold new elections and attract direct foreign investment to diversify the economy by having a politically stable country. But yes, privatising and other neo-liberal policies would probably help a lot. 

They should've built more reserves in case oil prices would fall like Saudi Arabia and Russia did. The situation in Venezuela is a big big big big mess. It seems like they simply have an extremely corrupt elite that doesn't care about the citizens.

They need some Jeffrey Sachs there tbh.

[Economy 52,842]

2 hours ago, Luc said:

Socialism and capitalism isn't the problem here. If it was insufficient spending that was the problem they'd have a situation like in Greece.

The real problems here are that they didn't diversify their exports which they heavily relied on for govt spending, they print money to make up for the loss in oil revenue which caused (hyper)inflation. They need to stop the inflation first and foremost, hold new elections and attract direct foreign investment to diversify the economy by having a politically stable country. But yes, privatising and other neo-liberal policies would probably help a lot. 

They should've built more reserves in case oil prices would fall like Saudi Arabia and Russia did. The situation in Venezuela is a big big big big mess. It seems like they simply have an extremely corrupt elite that doesn't care about the citizens.

They need some Jeffrey Sachs there tbh.

But they already had serious issues when oil was at $100+ a barrel

 

Read up on their issues. The Government used tax money extremely poorly. 

 

Their State owned enterprises which replaced much of their private sector were not only inneficient, but the Government didnt even invest on those either

 

Even oil their biggest export was struggling because their oil State Enterprise wasnt devoting enough money for maintnance and development cause Government was taking too much

 

I do think poor socialism was the problem. They tried to take over too much and they messed up real bad.

 

And im not hating on socialism, it can work under a competent Government. But Venezuela had no clue what they were doing

[Luc 4,776]

3 hours ago, Economy said:

But they already had serious issues when oil was at $100+ a barrel

 

Read up on their issues. The Government used tax money extremely poorly. 

 

Their State owned enterprises which replaced much of their private sector were not only inneficient, but the Government didnt even invest on those either

 

Even oil their biggest export was struggling because their oil State Enterprise wasnt devoting enough money for maintnance and development cause Government was taking too much

 

I do think poor socialism was the problem. They tried to take over too much and they messed up real bad.

 

And im not hating on socialism, it can work under a competent Government. But Venezuela had no clue what they were doing

The real big problem here is inflation however, caused by printing money caused by lack of money. They could just raise taxes to fill the gap (and cause deflation or artificial inflation  ). The problem with inflation is not due to inefficient spending but simply due to having a too big deficit which they want to fill with printed money.

But yeah, after solving short-term problems (aka the humanitarian crisis there) they should focus on lowering uncertainty as much as possible and thus attracting foreign investment and diversifying the economy. Socialist policy is probably not going to be the best way to do that, though focus on education could help in the long term for attracting new sectors. They basically screwed up. Inefficient state enterprises are probably a part of the long-term problem but not the short-term problem.

 

What I still don't understand is why there's a shortage of food  I mean, inflation yeah but does that lower agricultural supply? There must be demand  

[Economy 52,842]

1 hour ago, Luc said:

The real big problem here is inflation however, caused by printing money caused by lack of money. They could just raise taxes to fill the gap (and cause deflation or artificial inflation  ). The problem with inflation is not due to inefficient spending but simply due to having a too big deficit which they want to fill with printed money.

But yeah, after solving short-term problems (aka the humanitarian crisis there) they should focus on lowering uncertainty as much as possible and thus attracting foreign investment and diversifying the economy. Socialist policy is probably not going to be the best way to do that, though focus on education could help in the long term for attracting new sectors. They basically screwed up. Inefficient state enterprises are probably a part of the long-term problem but not the short-term problem.

 

What I still don't understand is why there's a shortage of food  I mean, inflation yeah but does that lower agricultural supply? There must be demand  

Yes but the shortage of money that caused the need for priting had a root cause. There may be economic symptoms being handled poorly but they are not what started all this

 

One thing causes something else but at the root of the problem they had no innovation, lots of inneficiencies, and no investment where they needed it. They also overspent and got into debt (and not for useful things)

 

As for the food shortage... Im not 100% sure but it could have to do with the price controls

 

The Government has been messing with price controls for certain specific products even before the inflation and oil crisis

 

It could be that they are trying to keep price of basics too low that arent keeping up with the rest of inflation and its simply not profitable for companies to import food

 

I dont know for sure if thats the reason tho it could be something else

 

But between price controls, poorly run state enterprises, failure to invest on the necessairy stuff... do people really gotta ask why they failed so badly?

 

If your gonna have a big Government trying to micro-manage at least do it right. Norway, Finland, Sweden could teach Venezuela a thing or two about socialism done the right way 

[Luc 4,776]

11 minutes ago, Economy said:

Yes but the shortage of money that caused the need for priting had a root cause. There may be economic symptoms being handled poorly but they are not what started all this

 

One thing causes something else but at the root of the problem they had no innovation, lots of inneficiencies, and no investment where they needed it. They also overspent and got into debt (and not for useful things)

 

As for the food shortage... Im not 100% sure but it could have to do with the price controls

 

The Government has been messing with price controls for certain specific products even before the inflation and oil crisis

 

It could be that they are trying to keep price of basics too low that arent keeping up with the rest of inflation and its simply not profitable for companies to import food

 

I dont know for sure if thats the reason tho it could be something else

 

But between price controls, poorly run state enterprises, failure to invest on the necessairy stuff... do people really gotta ask why they failed so badly?

 

If your gonna have a big Government trying to micro-manage at least do it right. Norway, Finland, Sweden could teach Venezuela a thing or two about socialism done the right way 

The thing is, deficit spending isn't a socialist thing. Deficit spending is what caused this and there's no relation between left/right and deficit/surplus. They could've just raised taxes and they'd still be socialists.

[Economy 52,842]

44 minutes ago, Luc said:

The thing is, deficit spending isn't a socialist thing. Deficit spending is what caused this and there's no relation between left/right and deficit/surplus. They could've just raised taxes and they'd still be socialists.

No i know. But deficit spending was another part of the problem, i didnt say that, that specifically was related to their failed socialism

 

I was refering to their taxes on businesses, or resources they took away from private sector but then failed to invest properly

 

To spend even beyond that yes is a dif issue

[GagaTheExplorer 3,053]

pray for my country