Venezuela has been facing an economic crisis for years that has continued to worsen for the people there. The fiat currency has faced a slow death and meant the steady decline in standard of living for millions. Many who have had the means to leave have already done so, for others they are left bartering and doing whatever they can to survive.
Now, Venezuela is going to move to take away 6 zeros from the bolivar because of the steady deterioration. They are trying to save the currency which has been seeing nothing but decline now for years without any clear picture of how things are going to be made better.
In some regions people have now taken to bartering goods to get by, using whatever skills they have to try and earn an income in the country.
The currency in Venezuela had become so worthless because of the economic decline in recent years that people could be seen on the streets who were actually using those pieces of fiat currency paper and trying to turn them into something of real value to be used like a wallet, purse, or a work of art to be enjoyed.
The fiat currency has become worth more as craft paper and this free fall has left millions struggling and trying to figure out how to maintain their standard of living.
The UN has started distributing food rations in the country and millions of Venezuelans have left the country already, trying to look for something better elsewhere. According to Kennedy School scholar professor of the practice of economic development R. Hausmann, what we are seeing now in Venezuela could be regarded as the biggest economic collapse in human history outside of war or state collapse.
He, as well as others, have also pointed to government and their contribution to the problem, with the implementing of 'massive expropriations and massive controls' within the market. With that extensive government manipulation the state engaged in it had negatively influenced the market mechanism of determining appropriate supply and demand.
The state has severely restricted the ability of the people and the market to try and exchange their way out of this mess and try to establish a higher standard of living for themselves. While they arguably contributed greatly to the problem and still fail to solve the problem today, there are millions left who are suffering as a result of those actions.
🆙
🆙