The economic collapse in Venezuela is mainly related to the government. And their country's richest resource, crude oil, seems to be the fuse that led to Venezuela's economic collapse.
Venezuela has the largest crude oil reserves in the world. A few years ago, the price of crude oil in Venezuela remained high, even reaching $1 a barrel, and it was exported to all parts of the world. Venezuela at that time was the richest man in Latin America. The welfare of the government is also excellent. Even in Venezuela, crude oil is cheaper than water. Venezuelans live on welfare. The government, too, only relies on exporting crude oil and national taxes to maintain the expenditure of the whole country.
However, the good times didn't last long. With the maturity of new energy technology and the problems of Venezuelan crude oil equipment, the price of crude oil fell wildly and the output dropped rapidly. Venezuela, which has no other income, has taken a very wrong approach and printed money on a large scale. This not only leads to serious inflation, but also makes the currency depreciate sharply. At present, Venezuela's inflation rate remains high, and if it continues to rise, it is likely to create a record high. As far as the Venezuelan government is concerned, corruption seems to be a serious problem. In such a depressed economy, part of the oil revenue will still fall into the pockets of government officials.
People have been unable to buy necessities for a long time, and the shelves of large supermarkets are all empty, which has seriously affected people's lives. The outbreak of infectious diseases and epidemics and the lack of drugs in hospitals have led to a rapid increase in the mortality rate in Venezuela. The government is aware of the seriousness of the problem, but it is unable to take effective measures. Therefore, Venezuela's economy is getting more and more depressed.