The Wall Street Journal reports that there is a major hunger problem going on in Venezuela. Back when Hugo Chavez was still alive, he had a policy of redistributing the wealth of Venezuela from the rich to the poor of his nation. He did this in order to fuel his rise to power. However a few years after his death, the people of his country are suffering greatly due to his failed economic policies. Chavez was labeled by some as the god-father of socialism in this new century.
What socialism fails to take into account is that the goods that are being redistributed to the poor must first be produced explained analyst Norka Luque. Venezuela’s policies did not foster high production, and ultimately it ended up providing for its poor with borrowed money. There was a time when Venezuela met some of its needs through the sale of its oil reserves, but the oil market suffered so less money came in. Venezuela’s problems worsened because farmers had no incentive to innovate new farming techniques to meet the growing challenges they faced. Norka also said that corruption is also a large problem that has effected Venezuela’s economy.
Now, 87% of Venezuela’s people say that they do not have enough food to stave off feelings of hunger. This is a result of Chavez’s policies which caused food prices to rise by 180%.