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Hugo Chavez Everything Is Everything Analysis

Satisfactory Essays

August Hein
Capt Rintala
Economics 201 – Final Paper
29 April 2015
Everything is Not as it Seems: A Fuel Story Venezuela, officially, the Bolivarian Republic of Venezuela, is a country on the northern tip of South America and bordering Columbia. Hugo Chaves was elected the President of Venezuela in 1999 after serving in the Venezuelan Army from 1976-1991 and leading an attempted coup and after beginning his political rise in 1994. One political stance that Chavez adopted was Populism and, once elected, he enacted a national economic policy that kept gasoline prices stagnant and extremely low through government subsidies. Chavez remained in power for 14 years and throughout his entire rule he kept that policy in place to retain the approval of …show more content…

Venezuelans only pay 5.8 cents per gallon by the official exchange rate but by an informal exchange rate, used for most exchanges, the price dips to only 1.5 cents per gallon. Due to Venezuela’s decision to continue this subsidy for such a long time it has crippled their economy and will continue to prevent economic and social progress as long as this excessive government subsidy is not corrected. The use of populism as a part of a campaign platform is essential in elections, without it politician will not be elected by his/her constituents because they do not believe that the politician will act in their best interest. Chavez was wise as a politician to use this platform but from an economic standpoint it has become an unbearable burden for the Bolivarian Republic of Venezuela. Venezuelan crude oil output has

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