It all started with President Hugo Chavez and the expropriations, but for you to understand this I must first explain the difference between capitalism and socialism
In capitalism, individuals and companies carry out the production and exchange of goods or services freely for the purpose of benefiting. The distribution, production and prices of goods and services are determined by the free market.
While in a socialist government system:
It is a system of economic and social organization, whose base is that the means of production are part of the collective heritage and the people themselves administer them. Some of the main objectives of a socialist order are the just distribution of goods and a rational organization of the economy. For this, it proposes the elimination of private property and the extinction of social classes.To change from capitalism to socialism President Chavez began to expropriate private companies, losing international reliability and leaving them in the hands of people little or nothing prepared to run the companies properly, so many went bankrupt and began to run short of products .claro, todo eso no ocurrió de golpe, ni de 1 mes a otro.
In the middle of this, in 2015, oil prices fell more than 50%, and Venezuela being a country that only exports oil, its economy was greatly affected.
They stopped entering more than 50% of the currencies, so the government could no longer maintain the stable economy that we had and began to take special measures, one of these measures was the exchange control, making the only way to obtain foreign exchange is buying them to the government, a government that had just suffered a cut of 50% of their income, so it was impossible to continue selling dollars to people and entrepreneurs who needed dollars to buy foreign raw material had to start buying dollars in the parallel market or black market, what began to increase the price of the dollar and small companies that could not keep up the pace began to fail, increasing increasingly the shortage of products.Private companies were disappearing and those that were expropriated by the government no longer produced, Venezuela reached a critical point where we did not get the products of the basic basket in the supermarkets: Toilet paper, Toothpaste, champoo, Butter, Flour bread ( Typical breakfast and dinner in venezuela), just to name a few. To get them they had to buy resale with very high prices.
The government had to take another special measure: since these products were so scarce, they began to be sold by ID number; they are grouped by the last numbers of the card, in this way:
Monday people with a license number that end in: 1 and 2
Tuesday people with a license number that end in: 3 and 4
Wednesday ending in: 5 and 6
Thursday ending in: 7 and 8
Friday ending in: 9 and 0
Saturday ending from 0 to 4
Sunday ending from 5 to 9
Yes ... you can not go and buy when you want if not when the government tells you.
This as a measure of "rationing" the food and what it did was to generate new problems
When you can not go at any time and at any time to buy at the supermarket, if not only the days that you play you had to go that day and began to form long queues to buy food.
People trained to buy regulated products of all ages due to the mismanagement of our petrol and the capitalist governmentFrom there came the people called "bachaqueras" or people who are dedicated to making these long queues to buy the products at a regulated price and then resell them at high prices to people who can not make these long lines.The problem of these bachaqueros is that they not only go with their ID cards on their day, but also other days with family IDs and end up monopolizing a large part of the goods.
The shortage increased the price of the products, making the monthly minimum wage was not enough to cover the expenses of the month, so the government began to take other measures: increase the salary several times indiscriminately without analyzing the root of the problem
This what was done was to take many people to unemployment, companies must pay more to their employees and with few sales (due to high prices) the owners can not fulfill all the payroll and end up cutting expenses and dismissing staff.
So in summary:
Expropriations -> Zero international investment.
Zero international investment -> Little national production.
Little production -> Shortage of products.
Shortage -> Increase in prices.
Increase in prices -> increase in salary.
Salary increase -> INFLATION.
Parallel to all this occurred the fall in the price of oil so the government applied a law of exchange control and control how many dollars could buy a company (dollars needed for raw materials). In a short time the only way to acquire dollars was through the black market and by increasing demand the price also goes up.
The increase of the dollar has got us screwed
At present, the dollar has a value of: 84 thousand bolivares fuertes per dollar.
with a minimum monthly salary of 250 thousand Bolivares the equivalent in dollars would be only 6.25 $.If ... an average Venezuelan earns only $ 6.25 a month, how sad is not it?
This obviously is not enough to cover the monthly expenses, this led people to not eat their 3 meals a day or not eat enough to render the food, causing people to start losing weight.
Steemit.Being the minimum monthly salary of only $ 6, steemit has become a great tool to obtain an alternative source of income, allowing you to generate in a week with good content the same as an average person would generate in 1 month of work.
In my case steemit has helped me in this crisis and has allowed me not to abandon my studies (Computer Engineering), otherwise I would have had to emigrate as many friends and family.
I hope I have helped you to understand a little about the problems that Venezuelans are dealing with every day, this was my way of explaining how little by little we were sinking into the crisis so deep that we are now.
@desmoking-vnzla