Venezuelan economic crisis of 2016

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Venezuelan Economic Collapse of 2016

During 2016, the economy of Venezuela entered a state that news outlets variously described as "collapse", "chaos", or "starvation". The collapse was caused by a combination of the fall in oil prices, the socialist economic policies of Hugo Chavez and Nicolás_Maduro, economic mismanagement, and price controls.

Effects included a refugee crisis, with many fleeing in boats, massive inflation, electicity blackouts, and a dramatic increase in crime, particularly homicide. From 1 November to 28 November 2016, the black-market value of a United States Dollar rose from 1467 to 3480 Bolivars. Hence, the 100 Bolivar note, the largest note in circulation at the time, saw its value fall to roughly 3 U.S. cents. Even in 2015, people were carrying backpacks full of cash to pay for purchases, and the problem became worse in 2016, with people often visiting multiple ATMs in order to get cash. Hungry crowds stormed supermarkets and attacked food trucks. Some residents crossed into Columbia, legally or otherwise, in order to purchase food. Some wealthy residents shopped online for food, which arrived from Miami, while others were able to purchase food at upscale stores in Caracas, with prices tied to the value of the U.S. Dollar.

A few professions remained profitable. Bitcoin miners were able to earn large sums of money due to the subsidised price of electricity, but they feared for their safety. Many poor people found work in gold mines, but Malaria was also prevalent. People close to the regime earned money through drug trafficking, though some ended up in U.S. prisons. Others found work in the Venezuelan black market, allowing them to earn money, but also risking prison.

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Venezuelan economic crisis of 2016

Venezuelan Economic Collapse of 2016

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