top of page


Cole Rainey     01/04/2019

--Venezuela is a country in shambles, their economy is collapsing as their currency is practically worthless. 


  The Economist infers “The worthlessness of Venezuela’s currency is the result of inflation, 46,000% a year”. This is a result of the country’s attempts to print out money to pay off their deficit which is 30% of their GDP. The Venezuelan government thought it had full control of the Bolivar (the country’s now worthless currency). They assumed they could set price controls in order to guarantee everyone access to basic commodities. This resulted in businesses being forced to operate at a loss and in turn many businesses closed down. Then with nobody left to produce basic goods, prices of those goods skyrocketed. Leaving only the most wealthy able to afford goods smuggled over the border in the black market. 

  Socialism in Venezuela has lead to famine, violence and an imploding economy. The Venezuelan government has created a single commodity market. As businesses no longer work for profit, creativity and innovation in most markets was destroyed. Venezuela assumed its safety net would be oil, which they have quite a bit of. However, the oil market is unstable and changes frequently. 

  As stated by The Daily Wire, “When your entire economy is reliant on one commodity, then your economic fate is intertwined with price fluctuations that are beyond your control."  Using their oil revenue to finance their monstrous welfare state which promises the people free access to healthcare, housing and education worked temporarily. But when the price of crude oil plunged, their economy plunged with it. As everyone had become so dependent on the government they had no way of taking care of themselves on their own and the government had no means of taking care of the people.

  Their Socialist system has promoted corruption as well. With the Venezuelan government paying off rich Oligarchs who controlled oil distribution while the people suffered and grew poorer. The Washington Examiner explains, “The bigger the government, the more people's success depends on sucking up to officials rather than on offering a service to consumers. Expanding state bureaucracies offer new opportunities for nepotism.” 

  Venezuela is in trouble, as their economy implodes and their people starve ,"Over 1.6 million migrants packed their bags and left the country in 2017” according to PADF.  More evidence states, “Severe shortages of medicine, medical supplies, and food make it extremely difficult for many families to have access to the most basic health care and to feed their children,HRW reported. 

  This “socialist utopia” as promised by former leader of Venezuela, Hugo Chavez, is now modern proof of the negative effects of government intervention in the free market.

  Venezuelan President Maduro is more fearful of foreign intervention into the humanitarian crisis. Maduro has sparked concerns with opening up markets in his country or fixing his economy. Just recently he stated his country has a militia of 1.6 million ready to defend from a foreign attack. He also stated “An invading imperialist force may enter a part of our fatherland, but the imperialists should know that they will not leave here alive.” 

  Threatening the West is a grave mistake. As a leader in maintaining human rights across the globe, the United States may have to intervene in order to free the people of Venezuela and allow a market based system to be implemented. Senator Marco Rubio has advocated recently for military intervention in Venezuela saying “I believe that the Armed Forces of the United States are only used in the event of a threat to national security. I believe that there is a very strong argument that can be made at this time that Venezuela and the Maduro regime has become a threat to the region and even to the United States.

  The national security threat is a combination of a hostile attitude toward Western ideals combined with a power lust leading Maduro to starve his own people and run his country into the ground. The region is becoming destabilized due to mass migration from Venezuela Socialist policies. In order to promote order and human rights and stability in the region some type of action is necessary.

  It's the United States responsibility to protect those most vulnerable. The people of Venezuela are vulnerable, incapable of enacting change. As protesters are routinely beaten and ignored by Maduro’s regime. Venezuelans have given up their right to bear arms and are now completely vulnerable to the will of the government. In order to protect the human rights of those in Venezuela and stop this mass migration crisis The United States needs to work with other nations in the region such as Brazil and Peru in order to incentivize the Venezuelan government to either change or be replaced. People have a right to be free, it’s a God given right. The Maduro regime is stripping basic liberties from it’s people such as the right to bear arms and defend themselves from a tyrannical government such as Maduro’s. 

  A revolution is impossible when the only armed people are the ones in power. So outside influence, whether through covert means such as a CIA operation or through diplomatic pressure is necessary in order to fix Venezuela and set up a system of governance that works.


bottom of page