Sources:
https://en.wikipedia.org/wiki/Economy_of_Venezuela
Article: CNN Money, Venezuela's Currency is Worth Less Than a Greasy Napkin
Patrick Gillespie August 18, 2015
Summary:
Oil has always been Venezuela's main export, but oil prices have dwindled. Inflation rose 68% in 2014, and the US dollar is currently worth 676 bolivars. The current president of Venezuela has made the problem worse by deciding to continue welfare programs created by Hugo Chavez. Since oil has lost so much value, the president has asked other OPEC members to borrow money to pay for imports like sugar, flour, and paper napkins.
Prior Knowledge:
In the 1980's, oil prices plumbeted. Hugo Chavez started many welfare programs when the oil prices shot back up in the late 1990's, and now things are going poorly again, to say the least. Venezuela has a mixed economy, but a large flood in 1999 caused 20 billion US dollars of debt.
Compared to the US:
Venezuela is one of the United States's most valuable traders. We import cars and medical supplies from them, because it is much less expensive to make them in Venezuela. They import basic goods like food and clothes from the United States.
Adv.:
-When oil prices are high, the whole nation does well.
-They know what to produce, and who to produce it for.
Dis.:
-When oil prices are low, the whole nation is in debt.
-Major inflation
-Poverty
