Question

What policies did Hugo Chavez and Nicolas Maduro take that hurt the economy and what were the consequences?

Answer 1

Hugo and Maduro who acted as the president of Venezuela did some mistakes that shattered the Venezuela economy.

Hugo policies which shattered the economy

1) Increasing the exports of oil and making only oil as it's main exports made them see decline in oil resources.

2) Crippled Private business with restrictions and his administration which made them to see private business close their business

3) His policies and restrictions made both domestic and foreign investors to with draw and drive away from the country

4) Increase in the price of goods more than 20% per year for almost a decade which lead to hyper inflation

5) Did not take proper measure to control unemployment which lead to increase in crime rate in the country and made people to loose hope on government

Maduro also followed the same foot steps of Hugo and made the economy even more mess

1) Increased money supply more than required which Increased the hyperinflation in the country

2) Did not try to create jobs for unemployed rather tried to control them.

3) Introduced new currency and tried to follow unofficial exchange rate which worsened the currency exchange rate even more

4) Increase in consumer price and Inflation rate.

5) Increase in national debt by borrowing money and not able to pay them