Venezuela's Economic Problems

Do you know that Venezuela could be one of the richest countries in the world? Venezuela is one of the countries that has one of the most profitable products in the whole world. Venezuela depends mostly in the price of oil to keep their economy afloat because it is one of the products that makes countries economies high. Surprisingly economy in Venezuela is really terrible because there’s not globalization. They are too many problems going on there: some of these problems are affecting the majority of Venezuelans because there is not education for everyone, the children are forced to work, there is a food crisis and the oil prices are really low. My solution to fix Venezuela’s economy is that the government have to create a new system to
As the author Depersio demanded, “The price of oil is one of the most heavily watched trends in economics, as it has an effect on Venezuela” Consequently, because of the oil prices affects, Venezuela have been dramatically in the worst form of being a country going from one of the highest economies to a very low economy in the world. The low oil prices have been affected Venezuelans and many companies that have benefited from the oil and also the good economy. Oil has gone down for a high amount,Venezuela have to hit $111 a barrier, but they are only getting $33 a barrel the lowest rate in more than a decade. As a result of this effect in Venezuela economy, companies have also been in a lower financial shape because if the companies are benefiting from the oil and the oil made the economy really low, also the companies will be affected. Another consequence that had oil prices caused is that Venezuela have declined more that 350,000 barrels per day because domestic consumption and smuggling have been falling. One company that is affect is Petróleos de Venezuela, S.A. is the Venezuelan state-owned oil and natural gas company. It has activities in exploration, production, refining and exporting oil, as well as exploration and production of natural gas (PDVSA). One example that tells us that this company is being affected is “PDVSA was in bad financial shape even before the oil price collapse, and since it began it has become worse”(Monaldi #3). This company wasn't in good shape the oil production and the oil prices made the company be more in dangerous. Consequently the issues happening in Venezuela because of the really low economy can continue like that for many more years. According to the article Columbia Sipa says, “Venezuela macroeconomic crisis will likely get worse for lack of adjustment in an election year, there is even a small probability of hyperinflation and a