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Venezuela’s Economy: Two Charts Worth a Thousand Words

By: Fergus Hodgson - @FergHodgson - Mar 3, 2014, 4:17 pm

As Joel Hirst has said, “when the populism runs out, because there’s no more money, that’s when the repression starts.” Venezuela may have the world’s second largest oil and gas reserves, as Steve Hanke of the Cato Institute notes, but wrongheaded policies mean production has fallen considerably in the past 15 years — the Chavista era.

venezuelan-oil-and-gas-production

And when the money runs out, what’s to stop you from printing it? That always works, and the official inflation rate of 56 percent has to be true; it’s official.

venezuelan-inflation

The socialist party is over, and Nicolás Maduro will not be president in a year’s time.

Fergus Hodgson Fergus Hodgson

Fergus Hodgson was the founding editor in chief of the PanAm Post, up until January 2016, and he now studies finance at Tulane University in Louisiana and Francisco Marroquín University in Guatemala. Originally from New Zealand, he has also lived in Argentina, Canada, Colombia, Ecuador, Ireland, and the United States. Follow @FergHodgson and his Facebook page.