How Venezuela imploded (update)

(Note: A version of this episode originally ran in
.)
Back in 2016, things were pretty bad in Venezuela. Grocery stores didn’t have enough food. Hospitals didn’t have basic supplies, like gauze. Child mortality was spiking. Businesses were shuttering. It’s one of the epic economic collapses of our time. And it was totally avoidable.
Venezuela used to be a relatively rich country. It has just about all the economic advantages a country could ask for: Beautiful beaches and mountains ready for tourism, fertile land good for farming, an educated population, and oil, lots and lots of oil.
But during the boom years, the Venezuelan government made some choices that add up to an economic time bomb.
Today on the show, we have an economic horror story about a country that made all the wrong decisions with its oil money. It’s a window into the fundamental way that money works and how when you try to control it, you can lose everything.
Then, an update on Venezuela today. How it went from a downward spiral, to a tentative economic stabilization… amidst political upheaval.
Planet Money
Planet Money