Once known as the Saudis of the West, Venezuelans have seen their economic fortunes decline in exact proportion to the general fall in world oil prices. Runaway inflation. Venezuela is a country that has various domestic issues. I will be discussing the ones I have found to be salient.
Inflation in Venezuela
Inflation in Venezuela Free Essay Sample
I believe it is bad for America, as it puts too big of a burden on consumers and pushes the economy towards a recession. I believe there can be balance to where both consumers and big oil can achieve equilibrium. Gas prices at four-dollars a gallon have thus far proven to be unsustainable, realized by depressions, recessions, and now over supply. Eventually the pressures became too strong, and Argentina defaulted on its debts and floated the peso against the dollar.
What’s Venezuela Crisis Really About? Essay
Many labor economists have determined that undocumented workers within the U. S have lowered the wages of native-born workers, specifically adults without a high-school diploma, by up to 7. Because the lower class is desperate to work, they have to be willing to accept any pay they can. This pay is often minimum wage and usually by no means enough for a family to live off of.
What is GDP? It means Gross Domestic Product. Deflation is also a term used in the economics, according to the web page Crisis Times, deflation is a fall in the general price level. One problem that complicates their economy is the exesive printing of money. This means that there is more money but with less purchising power.