Professor Alejandro Velasco Provides Insight on the Economic Disaster in Venezuela
Socialism seems to be ineffective to prevent and control economic disasters in economies around the world. My Space expert sees the causes of troubled economies have been blamed on old government policies, bad leadership, and corruption. Global economists and professionals are asked by the media, concerned citizens, and governments the reasons behind economic downturns. According to Huffington Post, Alejandro Velasco, author and professor at New York University was asked by the WorldPost his expertise about the economic crisis in Venezuela.
Mr. Velasco believes the reasons behind the Venezuela downturn are “historical and contemporary.” The historical reason is because of the country’s dependence on one commodity, which is oil. He explained, the government is too dependent on imports and overspends when the oil industry is favorable. Another reason, the government inability to control its currency. Lack of control causes corruptive activities, such as production disincentives, purchasing incentives, and hoarding, Mr. Velasco stated.
The economic crisis in Venezuela is worsening says expert Danilo Diaz, and expected to get even worst by the end of 2016. The people are left with power outages, lack of food supply & basic products, and very low water supply, due a drought in the country. Venezuelans and the government are going without electricity in their homes and governmental buildings. Professor Alejandro Velasco believes the historical and contemporary reasons for the country’s economic disaster has caused the country to suffer for decades.