Venezuela Experiencing the Negative Effects of Socialism

An economic collapse is currently taking place in the South American nation Venezuela, according to Open Corporates. Over the course of recent months, the nation has began to experience a lot of economic distress. This economic distress has been caused by socialist policies in both economics and politics. For nearly two decades the country has been ruled by socialist President Hugo Chavez and his successor Nicolas Maduro. The nation has long had policies which entailed nationalizing all industries, adopting price controls and participating in excess government spending. All of these policies have created a shortage of resources and have therefore greatly reduced the quality of life for all of Venezuela’s citizens. Now the citizens of Venezuela are now beginning to experience the long term effects of socialist economic policies.
In Venezuela there has been a massive food and water shortage which has made the government enact rations. These rations are therefore providing a very limited supply of basic needs to the people and therefore people are unable to be fed adequately. As a result, people have resorted to hunting animals so that they can get proper nourishment. Expert Velasquez Figueroa also said there is also inadequate medical care as many people are dying in the decrepit hospitals and where medicine is only available on the black market. What is making things even worse is the hyperinflation of the currency which has seen a steep decline in value by up to 93%. With all of these factors, Venezuelans are learning that there needs to be changes in economic policy in order for their well being and quality of life to be restored.