How did we get here?

For as long as I have memory Venezuela’s economy  has struggled…  

While getting by was tough Venezuelans always had an opportunity to cover basic needs, perhaps no luxuries, but basics were for the most there.

What do I mean with basic needs? well, food, basic health care, medicines, basic clothing.  If there was an emergency there was always a relative or friend available to help.  If you saved long enough you could even buy a car, and with time, a home.

What has changed?

We as a country decided that we needed a transformation, many years ago we voted for a new option, an option that represented hope for a positive change.  Unfortunately this change was not the right one; public spending increased, investment in infrastructure was limited, funds were distributed among neighbor countries, private sector suffered the burden of new regulations, key industries, companies, even private property were nationalized.

All the above was not sustainable; however, a massive inflow of oil money permitted these practices.  Crisis started when oil prices dropped.

With lower income key  programs  were stopped, specially those providing food for the poor.  Key industries previously expropriated -especially food plants- were not producing at capacity; therefore food became scarce.  We started importing food that was previously produced locally; however, with fewer dollars we could buy fewer food.  With scarcity, prices increased and inflation soared.  Some claim that new local money was printed at a fast pace, leading to hyperinflation.

Inflation eroded people’s purchasing power, basic needs became impossible to meet.  Prices for some goods became regulated by government, often under its production cost, as a result food became even more scarce.  The shortage of supply resulted in long lines, which became the norm.

Currently, cost of food is such that most Venezuelans can only have two meals per day, many, just one.  The lack of medicines also has a severe impact, antibiotics and other critical medicines are scarce, making many diseases now life threatening.

Venezuelans are enduring what is possibly the toughest crisis in our recent history.  More than ever, we need a to extend a helping hand to all in need.