Why Venezuela's Economy Is Such A Disaster

Venezuela's socialist government has long been one of the region's most controversial. Former President Hugo Chávez, who died in March 2013, launched a left-wing, nationalist political movement that defined itself in opposition to U.S. influence in Latin America, which he derided as "Yankee imperialism." Since Chávez's successor Nicolás Maduro has taken the reins of government, however, Venezuela's economy has spiraled out of control -- partly due to the declining price of oil, its most important export, and partly due to unusual economic policies first put in place by Chávez. Shortages of food and other consumer products, and the gaming of a complex currency control system have become common. The country's ever-contentious relationship with the U.S. government has continued to slide, with the Obama administration announcing in March that it would sanction seven military and elected officials over human rights abuse allegations. More…