Why did Venezuela, once an oil-rich country, become a poor country?

Venezuela became the pearl of South America by its oil wealth, which was only realized in the 1970s, because it was realized by the first oil crisis in the world and the big price increase of crude oil. Venezuela used to be richer than most countries in South America, but now Venezuela has become the country with the worst economic situation in South America. Eating in Venezuela is a problem now, and the reasons are very complicated.

Of course, the United States is the incentive. If the United States does not impose sanctions, the crisis in Venezuela may not break out so soon, but the most fundamental problem in Venezuela is the mistake of Chavez's economic policy.

Oil has always been Venezuela's largest export product. However, the wealth earned by oil leads to higher income inequality, because most wealth is controlled by a few people. But Venezuela is too dependent on oil, which has led to today's situation!

But Venezuela is different from the cartel, it has money to regenerate money! After Venezuela made money from oil before, they began to engage in construction and housing projects, which greatly improved the quality of life of some poor people in Venezuela. At that time, people in Venezuela thought that oil prices would continue to rise. But the actual price has fallen!

After this problem appeared, the new government came to power. The new government made mistakes in economic management, mainly by subsidizing food for the people to stabilize society. Then, on the one hand, it is not solved well, and on the other hand, it is handled well. I think this is the main reason for Venezuela's economic collapse!

And the inflation we are engaged in now owes money to many countries! And the money owed can only be paid back with oil! When oil prices are high, it can earn the dollars it needs to repay its debts. However, when oil prices fell, it could no longer get enough dollars to repay its debts.

At the same time, Venezuela is too dependent on food imports to feed all people! There's nothing I can do. The only way to solve the problem of hyperinflation is to substantially reduce imports and increase domestic production, especially grain production. But for Venezuela at present, it is out of reach!

In the era of low oil prices, a series of factors, such as high welfare policy, single economic structure, American economic sanctions and domestic people's attitude towards life, led to the gradual collapse of Venezuela's economy.