Rich dating poor
The problem there, though, is that businesses won't sell things for less than they cost.They'll just leave their shelves unstocked instead.Venezuela is the answer to what would happen if an economically illiterate drug cartel took over a country. It really shouldn't have been hard for Venezuela's government to spend some petrodollars on the poor without destroying its economy.All it had to do was send people a check for their share of the country's oil money. And, to be fair, Venezuela was able to do so as well, as long as oil prices were in the triple digits.Which is to say that Venezuela is a man-made disaster.It's a gangster state that doesn't know how to do anything other than sell drugs and steal money for itself.So to make up for that, the government has subsidized a select few by selling them dollars at well, well below market rates.Consider this: The Venezuelan bolivar is trading for 1,075 per dollar on the black market right now, but 6.3 per dollar at the government's most preferential rate.
That's why Venezuela has had shortages of basic goods -- everything from food to beer to toilet paper and especially medical supplies -- even before oil prices fell so far.
A DEBT-RIDDEN couple were left in tears after the family they swapped with on Rich House Poor House decided to pay off most of their five-figure debt.
Sarah and Ross Timmins had spiralled into arrears which left them living a hand to mouth existence as they struggled to make ends meet.
And it has happened despite the fact that Venezuela has the world's largest oil reserves. Sure, -a-barrel oil hasn't helped, but it hasn't hurt so much that a "Mad Max"-style dystopia was inevitable.
Never has a country that should have been so rich been so poor. After all, every other country whose economy begins and ends at its oil wells has at least managed to avoid that fate.