Part 3/8:
Jimenez provides a detailed background on Venezuela's troubled economy, heavily reliant on oil—accounting for approximately 90% of national revenue. Under Hugo Chávez, oil prices soared, leading to increased social spending and the consolidation of power through authoritarian means. However, with Chávez's successor, Maduro, oil prices plummeted, and the economy spiraled into chaos.
The government responded by printing more bolivars, leading to rampant inflation. Concurrently, capital controls tightened, causing shortages of basic necessities like meat, milk, corn, toilet paper, and diapers. These shortages became so severe that everyday commodities were essentially used as currency, as Venezuelans attempted to store their wealth in tangible goods rather than the collapsing fiat money.