The history of Venezuela narrates a high rate of inequality. During the presidency of socialist party, the policies aimed to eradicate poverty but these policies eventually backfired. The policies were established by President Chavez during his presidency aiming to make basic needs accessible for poor population of the country with the revenue coming from oil exports as Venezuela boasts biggest oil refineries in the world. These objectives included steps like controlling the prices. This discouraged the investment from the Business class and economic growth started to crawl. Historical overview provides us with other examples like this that contributed to the economic destruction taking place today.
Today, Venezuela is experiencing the worst scenarios of hyperinflation. A report says that by the end of 2018, prices were increasing with a double rate every 19 days on average. Such situations have left Venezuelans to struggle everyday in order to fulfill their basic needs. People have started to leave Venezuela. Three million Venezuelans have left Venezuela since 2014.
The political unrest in Venezuela is another reason why the economic destruction has happened. Political parties are fighting over the legitimate position of President of Venezuela. This has also contributed to what is happening in Venezuela these days.