Venezuela Economic Crisis Essay

Venezuela Economic Crisis Essay
Over 135,000 Venezuelans waited on an international bridge to enter Colombia so that they could shop for food, toiletries, and medicine which
are hardly available in any of the country's stores. The government of Venezuela had closed the borders a year ago, but briefly ordered them open
twice this week. Governments made the decision to open the borders after 500 women, mostly dressed in white, broke through the border controls
to buy food in Colombia on July 10. Many of the Venezuelans sold their personal items to be able to afford food and groceries, and some invested
their savings and emergency funds to provide for basic necessities of their families. "This is money we had been saving for an emergency, and this is
an emergency," said Ramiro Ramirez, who crossed the border...show more content...
"Things are hard and we urgently need food. I have a granddaughter who's 2, and we can only give her mashed potatoes because we can't find rice or
pasta, never mind milk," Mariana Montes told Wall Street Journal. Venezuela has experienced cyclic economic crisis for decades, and the recent one is
triggered by falling oil prices (country's major source of revenue), and consequent balance of payment crunch and triple–digit inflation, all of which led
to shortages of food and household product supplies. Already the multinationals are closing offices in Venezuela, shops are short of basic supplies
such as oil, rice, flour, and sugar, and if the situation gets worse, it might deal a hard blow to the country. Protests and riots have become more
frequent in the country since September last year when economic condition gradually started getting worse. MarketWatch reported that inflation is
predicted to rise and cross 1,640 pert by next year. The nation's currency Bolivar has taken a sharp plunge downward, and has made it more difficult
for the people to afford products of daily
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American Economic Crisis Essay
There are many things that are fundamentally wrong with the U.S. economy. In fact, warning signs are everywhere. Politicians are more concerned
about elections than addressing the real issues. Voters are more concerned about whether gay people should be allowed to marry, rather than fixing
the problems that affect all of us. All the while, the economy is diving further and further into its despair. One of America's largest problems is the
ever growing mountain of federal debt. Investors say that in some cases, debt can be a tool to make money. However, critics claim theUnited States has
used its debt improperly. Politicians have claimed that the budget deficit is decreasing. However, history is showing us an entirely different story....show
more content...
debt securities. The mammoth trade deficit is cited as the primary reason. Many have taken a detached attitude to our economic woes. Since the
system hasn't completely crashed, why should they do anything about it? This situation leaves us incredibly vulnerable to any random crisis, were
one to occur. America needs to change the way it does business. Every person on the planet has two things in common. They all have strengths, and
they all have weaknesses. President Obama is not exempt from either one of these categories. He shouldn't be praised as our savior, but he shouldn't
be considered a dogged communist either. He angered many Americans with his 700 billion dollar bailout, but it kept the economy afloat so far.
Apparently, 620 billion has been paid back as well. The unemployment rate is still fairly high, but it's lower than it has been. He also lowered taxes
for 95% of Americans. On the other hand, the devaluation of the dollar is still a huge problem. And, the budget deficit is the highest it has ever been.
Furthermore, the wealthy are not being encouraged to invest. Regulations and high taxes on the rich are encouraging them to move their money
elsewhere. If Obama's administration can't supernaturally fix all of our afflictions, the Republican Candidates are more than willing to wave their
special magic wands. USA Today states that (R) Mitt Romney has vowed to "Directly challenge President Obama on the economy, if he is to be the
GOP nominee." He

Essay On The Sectional Crisis
The Road to Secession How did the sectional crisis begin? What one event triggered this crisis? While these are question commonly answered, it is up
to interpretation of the conflicts between the North and South in order to decide which events caused the secession. There is not simply one event or
conflict which resulted in the secession of the deep southern sates beginning in 1860 (Brands 2015, 333). As of February 1, 1860 seven southern states
had seceded from the union due to the friction between Northern and Southerners. While some may argue that the sectional crisis is a result of the fight
for power between the North and South; the sectional crisis can be attributed to three main factors and their effects on the nation, differences...show
more content...
One key difference between the North and South was the North's abundance of cheap labor. Between 1845 and 1855 around 3 million people
immigrated to the US (304). This new influx of people brought large quantities of low waged factory, mine and construction workers to the Northern
states just in time to aid in the industrial revolution. Contrary to the North, southern states still relied heavily on slave labor as their economy was
dependent on cash crops. Furthermore, slavery was not only an economic institution but now a way of life for Southerners. Therefore, slavery was
more widely accepted and condoned as it was both a way of life and an economic institution. However, Northerners did not experience this way of life
or rely on slave labor. Due to this, Northerners we more eager to expel slavery. Northerners' discontentment with slavery created negative responses to
the Compromise of 1850 as opposed to the Southerners. One of the five federal laws in the Compromise of 1850, the Fugitive Slave Act, disabled
Northerners' to remain impartial to the slavery conflict (315). The Compromise strengthened the Fugitive Slave Act, forcing Northerners to return

Introduction At least for a while, the bear seems to have buried the bull. Wall Street doesn't seem as shiny as it used to. The global economy has just
recently come out of a deep recession. At a time like this, it is particularly relevant to examine the role of the State in overcoming economic crises.
Although government intervention in the matters of a fair free–market is not entirely consistent with the doctrine of economic liberalism which has
been today vindicated as a necessity in a free society, in practical terms, it is impossible for the government to be not involved in something so intrinsic
to the over–all well being of its subjects. But what can the government do to get the country out of an economic slump? What many...show more
content...
According to Jonung (2009), the bank support was of crucial importance because it guaranteed the durability of the banking system by restoring
confidence in the Swedish institutions. The Riksbank (Swedish central bank) ensured unlimited liquidity by effectively acting as a lender of last
resort. The Swedish ministry of finance attacked the crisis with a twofold approach. Firstly, 'Banks in trouble were asked to obtain capital from their
shareholders,' on failure of which, the banks would have been confiscated and brought under public control. This was a crucial part of the recovery
package which pushed banks to the edge in their efforts in the battle for survival, thus minimizing the moral hazard problems. This is in sharp contrast
to the towering moral hazard problems which the U.S. faces with the corporate bailouts in the automobile and financial industry. Secondly, the finance
ministry created the 'Bank Support Authority' which supervised the process of splitting the assets of the major Swedish banks into a bad bank and a
good bank and managed them according to their prospects. The initial investment that Sweden made on the policy response to the crisis was more than
4% of its GDP but with the recovery of profitability of banks the net spending by the government was less than 2%

In 1994, the world saw the decline of the Mexican Peso, leading to what is now considered as the Mexican Peso Crisis. The crisis was characterized
by the drastic decline in the value of the Mexican Peso. The Mexican Peso Crisis is considered significant because of its impact on other parts of the
region, including Brazil. The following is a discussion of the causes and impact of the Mexican Peso Crisis.
The events/causes that led up to the devaluation of the peso
The Mexican Peso Crisis can be traced to the decision of then president Zedillo's decision to reverse the government's then policy that imposes tight
controls on the Mexican Peso. This decision is considered by critics as an important factor that led to the Mexican Peso Crisis...show more content...
It should be noted, prior to the crisis, there was already an increasing concern of economists and critics about the credit quality that was provided by
the financial sector at the time when there was low interest rates that were applied by the government. There were also issues about the
inappropriateness or ineffectiveness of the standards that were used in extending credit by the financial sector (Calvo, 171).
Another important factor that affected the financial sector and would eventually contribute to the development of the Mexican Peso Crisis was that the
risk premium of the Mexican economy was significantly impacted by the armed conflicts that happened in Chiapas at that time. This armed conflict led
to a decline in investor confidence about business in Mexico, such that there was a decline in the investment potential of the region (Mathur, 18).
In addition, in the decade leading to 1994, the government saw an increasing expenditure for various projects in the country. The result was an
increased reduction in the funds of the government. Another more important factor was that the country experienced hyperinflation from 1985 through
1993. This period was also characterized by significant increases in debt loads of the financial sector, as well as the low oil prices that also contributed
to the weakening of the Mexican economy (Mathur, 18). One would argue that the Mexican

The Economic Crisis of Today
The economic crisis is one of the most important and common problems we deal with today. It started around the middle of 2008 when the economy
had a downturn affecting the stock market and financial institutions. Economist believed it was the worst depression or recession ever in history. But
what is an economic crisis? It is when the economy of a country goes through a hard time experiencing damages in the stock market, causing people to
spend more than they make based on credit. Studies show, one reason we are in debt is for irresponsible people not paying their interest rates on time.
The world top three countries that contribute to the debt leading to the economic crisis are United States of America, United Kingdom, and Germany.
The United States of America is the country with the highest debt in the world. The federal budget includes expenses of defense/war, social security,
and Medicaid/Medicaid. All of these expenditures contribute to the economic crisis. Why? Because we are spending more than we make. The Unites
States revenue according to the US debt clock is about $2,850,172,180,692 but our spending is about $3,469,781,240,901. We are spending about $1
billion more than we have. But where does the $1 billion come from? The more we spend, the more credit we use. The US national debt is about $17,
441,235,958,693 based on the national debt clock. The United Kingdom is the second country with highest debt in the world. The federal budget
includes expenses of

Financial Crises And The Economic Crisis
Introduction
Financial crises are fundamentally, periods of economic turmoil. This essay is an analysis of the underlying economic scenario in three specific
financial crises that have occurred, since the Wall Street crash of 1929. It goes on to explain its impact on global trade and the lessons that G20
governments can learn from them.
Synopsis of the problem
The focus of this essay is the Global financial recession of 2008 (also termed as the Great Crash), Mexican crises of 1994 ( famously called the
Tequila crises) and the Asian crises of 1997. It's an attempt to understand and analyse the different impacts that the financial crises have had on
international trade.
The Great Crash of 2008 was caused by a bubble burst of sub–prime mortgages in America, which resulted in a crash of the US housing market. This
domestic economic crisis quickly transformed into a global recession and spread economic devastation worldwide. During this period world trade and
foreign manufacturing bore the steepest fall since the Great Depression.
During the Mexican crises (1994) despite increases in interest rates and fall in foreign investments the government tried to support the peso with
dollar reserves. However, due to excessive depletion of the dollar reserve, the peso was devalued which caused a major bank run resulting in a financial
crises.
The Asian crises of 1997 were triggered by Thailand as they gave up the fixed exchange rate regime, leading to a major currency crisis. The

Economic Crisis
Stabilization in the Wake of Economic Crisis Perhaps the most significant reason Pittsburgh was able to recover from the collapse of steel was the
decision, made early on by city officials and local developers, to seek out new industries rather than cling to the vestiges of the old. Beginning in 1981,
the Allegheny Conference (ACC), a non–profit coalition of local business and political leaders, made economic diversification their primary goal. The
conference established a committee whose sole task was to promote new industries. The committee's chairman said, at the outset, "we must
diversify...this time we must build new industries, new jobs." Over the next decade, the ACC helped secure financing for development projects
throughout the...show more content...
Symbolic of the success of that initiative, in 1990, Pittsburgh succeeded in capturing a $370 M investment in from the Sony Corporation to build their
two newest television manufacturing plants. Overall, these measures to stabilize Pittsburgh's economy were remarkably successful. Between 1982 and
1990, Pittsburgh's employment rate dropped 12.6% (from 17% to 4.6%). For the remainder of the decade, the unemployment rate hovered В±0.5%
compared to the national average. Thus, the successes of the late 1980s gave Pittsburgh had the breathing room to pursue longer–lasting, economically
sustainable reform. New Pittsburgh (1986–Present) Much of the success of the mid/late–1980s were the result of massive economic stimulation
measures rather than organic growth. Therefore, after the city recovered from the collapse of the early 1980s, city officials and local developers
continued their plans for further economic development. City officials used the successes of the late 1980s as a springboard to create the highly
diversified economy necessary for sustained economic growth. Since 1990, the focus of economic growth in Pittsburgh has been in three largely
codependent sectors: education, healthcare, and high–technology. Higher Education Since 1990, Pittsburgh's institutions of higher education have
largely driven its economic

Greek Economic Crisis Essay
The economic crisis in Greece showed various concerns within the market that drew my attention away. Greece suffered a great loss since the market
in wall street imploded in 2008 and is still suffering. The information I gathered from Greece may compel you to turn your cheek and walk away.
Culture Diversity
Greece's distinct culture have helped thrive many innovations, moreover, Greece does not suffer from any cultural impediments but one,
anti–capitalism. Much different from Greece, a capitalist market is what the United States thrives on. According to a researcher in economics, Romina
Boccia states, having a pro–capitalist market allows the U.S. to have a larger and more diversified economy (Boccia). This is to say; Greece's lack of a
...show more content...
Economic Crisis
Since the housing market crashed in 2008, "Greece became the center of Europe's debt crisis" (Times). More importantly, Greece's economy has
decreased by a quarter over the past 5 years and unemployment is at 25 percent (times). Even more shocking is Greece's budget cuts and rise in
taxes that are making the standard of living harder for their citizens to make ends meet. With the economy on the verge of collapsing a study by the
DiaNeosis thinktank found that "15% of the population, or 1,647,703 people, in 2015 earned below the extreme poverty threshold" (Helen Smith).
With poverty so low within a large group of its citizens, few believe Greece will escape its fourth bailout (Smith).
Social Issues
Greece's long recession has impacted its citizens on a similar scale of the great depression of the 1930s. However, according Lucy Rodgers & Nassos
Stylianou "The longer a person is unemployed, the less employable they become. Re–entering the workforce also becomes more difficult and more
expensive" (Rodgers & Stylianou). In consequence, several Greek citizens have emigrated as a result of the rising poverty. Even more, a study found
that more than "120,000 professionals, including doctors, engineers and scientists, had left Greece since the start of the crisis in 2010" (Rodgers &
Stylianou).
Conclusion
Greece is a country in dire need of help; an investment

APUSH Document Analysis and Questions Packet
The Growing Economic Crisis of the Late Nineteenth Century
Part A. 1. What did John D. Rockefeller believe was the key to stabilizing the oil industry? He believed that centralizing the administration,
hard–working people that applied themselves and work together, and a monopoly – owning as much as they can – would stabilize the oil industry.
2. What were the weaknesses of each of the following methods of stabilizing the industry? a. Agreement: agreement was when each competitor
agreed to certain standard prices and policies, but it was easily and quickly broken because people did not keep their promises ad people saw the
chance to undersell the rival. b. Pool: the...show more content...
Explain how prices of coal, steel rails, and copper in 1871, 1876, and 1879 relate to points on the graph of the business cycle. The graph shows in 1871
there was an industrial overexpansion boom that resulted in the production of railroads; this called for more materials and caused the increase in
price for the steel rails in the Document F chart. In 1876 there was there was the secondary post war depression causing things to go under causing
the price of items to decline, causing the lower copper and steel rail prices in the chart. And in 1879 there was the gold resumption boom caused
the prices to go down. All in all the prices of coal went down because of the over expansion, which led to less money being made to pay the
employees, causing the rates to go up and down. 7. From the documents, what inferences can you make about the "disastrous effects of the business
cycle" for each group below: d. Corporations: when the price of products went down, the more of the product that was made. But the cycle got better
during the "War Boom", but went down during the "post war depression." e. Workers: the workers were given less money when the prices of the
goods decreased.
Part C. 8. In what way do the above documents on labor union membership and the Knights of Labor philosophy reflect concerns of J.P. Morgan? The
chart shows the rising number of workers, but an unstable number of union members,

Causes And Effect Of The Debt Crisis Essay
What is the European Debt Crisis? The European Debt Crisis is the failure of the Euro, a currency that ties seventeen European countries together. In
this paper, I will be describing the cause and effect of the debt crisis along with what would happen if the European Union stayed with the economy
they have. Then what I believe is the best solution to fixing the debt crisis.
Causes
Formation of European Union
Adoption of the Euro
Increasing Debts
Large Amounts of Borrowing
High Interest Rates
Large Government spending
High Taxes
Paying Debts with Barrowed Money
Monetary Inflexibility
Greece on the brink of defaulting
There are many causes for the debt crisis to start. Before world war II Europe had very strict trade barriers between countries examples being
currency exchange fees and trade tariffs. Then World War II happened and was so detrimental to Europe they couldn't continue to have such strict trade
barriers. The barriers were then slowly removed with the first barrier removal being steel and coal. This worked well enough that it caused
twenty–seven countries to sign the Maastricht Treaty thus forming the European Union (UN). This made trading throughout all Europe easier which
caused more trade to occur within Europe.
In 1999 seventeen countries in the European Union adopted the Euro forming a Euro Area. With the adoption of the Euro these seventeen countries
discontinued their old currencies and monetary policies. Monetary Policies

The International Financial Crisis in 1929 Essay
The International Financial Crisis in 1929
Throughout the 1920's in Britain there were economic problems. Unemployment was increasing; therefore there was low domestic demand and large
amounts of poverty. Markets were also being lost abroad, leading to a decrease in trade. However in 1929–31 these problems reached crisis point,
when in 1929 The Wall Street Crash called for an end of American Loans to Britain, and the re–call of all Britain's debt. This had impact worldwide, as
prices for goods slumped due to lack of demand and business confidence disappeared. In Britain it became clear that the 'Laissez–faire' policy was not
going to work, but there was a divide in thoughts over which policy to adopt...show more content...
He was, however convinced by King George V to remain as Prime Minister but as leader of a national coalition government. In order to prove that
Labour was a national, responsible party, Macdonald was prepared to do this, as was Philip Snowden, Chancellor of the Exchequor. Snowden believed
that the budget should remain balanced and Britain should remain on the gold standard. He therefore supported the May Committee's proposal despite
Labour's working class stance. However Arthur Henderson the foreign secretary did not agree. Henderson was heavily influenced by the Trade
Unions, and felt strongly that Labour should represent the working class, therefore he felt that if the budget had to be balanced by cutting
unemployment pay and raising taxes it was better for Labour to leave office and leave such policies to the Conservatives or Liberals. This difference
in opinion within the party led to its break up and the formation of a national government due largely to the proposals if the May Committee.
(c) 'Ramsey MacDonald had no alternative but to form a National Government in 1931.' Do you agree or disagree with this statement? Explain your
answer. (15) After the First World War, Britain was thrust into a depression. Unemployment rocketed and wages fell dramatically. The most

Essay on Energy Crisis
Energy Crisis
Energy is important to our nation for many reasons. It is a key economic driver. It offers new market opportunities for business. Providing energy to our
nation has been an exciting challenge in recent years. Many changes have been constant throughout that period. The past tells Americans that predicting
the specifics of the energy future for our nation with great accuracy would be unlikely. Americans get their energy from different types of resources.
With all the different resources Americans believe that an energy crunch shouldn't happen.
The crisis is a nationwide energy discontent in which natural gas rates have soared to the highest level in 15 years, and OPEC has slashed its oil
output again to keep...show more content...
More than half of the growth for natural gas, over the next 20 years, will come from the electric generation market. The use of natural gas in this
country could increase by more than a third in the next 20 years. In the electric power generation industry, natural gas could increase as much as 250
percent for power generation.
The United States now has two percent of the world's proven crude–oil reserves. Most of the American produced oil comes form old wells, where the
output declines over the years. Production costs are lower overseas, so it is cheaper to buy from OPEC nations than from many American suppliers.
Increasing energy supplies requires not only wells but new pipelines to transport oil and natural gas. In 1998, the United States consumed 9.8 million
more barrels of oil a day than it produced.
The economic miracles of the 20th century were powered by fossil fuels. The 21st century may be seen by an equally dramatic change from fossil
fuels, and the environmental chaos they brought. The result may be less than an energy revolution. The cost of fossil fuel energy produced is
comparable to that of electricity. A fuel cell cleanly and quietly combines oxygen and hydrogen to produce electricity. Fuel cells could one day sit in
thousands of basements producing power and hot water, without fossil fuels. Some fossil fuel lobbyists still argue that it will be difficult and
expensive to find an alternative to oil and coal.
Nuclear

The 2008 Financial Crisis Essay
Introduction
In 2008, the world experienced a tremendous financial crisis which rooted from the U.S housing market; moreover, it is considered by many
economists as one of the worst recession since the Great Depression in 1930s. After posing a huge effect on the U.S economy, the financial crisis
expanded to Europe and the rest of the world. It brought governments down, ruined economies, crumble financial corporations and impoverish
individual lives. For example, the financial crisis has resulted in the collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman
Brother and AIG. These collapses not only influence own countries but also international area. Hence, the intervention of governments by changing and
...show more content...
The economy is known as a new emerging economy especially after entering WTO in 2007. The Foreign Direct Investment (FDI) has increase
considerably and the GDP is over 8% in the period of three years (2005–2007). Nonetheless, it is clear that the economic instability occurs after WTO
accession of Vietnam 1 year. Consequently, the economy has suffered surginginflation as well as trade and fiscal deficit. (Figure 1) GDPCPI
20058.48.3
20068.27.5
20078.58.3
20086.223
20095.36.9
Figure 1 : GDP and CPI 2005–2009 (% change per year)
Source: Asian Development Bank and Vietnam
B. Inflation
Inflation doubled in 2007 and reached a peak at 28% in 2008.The fiscal make up 4–5% GDP and the trade deficit accounted for 20% GDP in which
approximately $US17.5 billion dollars. The influence of high fuel combine with food prices and high domestic demand lead to high inflation. The high
price of fuel in Vietnam illustrates global fuel prices and the high domestic demand of country importing fuel. Furthermore, the increase in global food
prices affect detrimental to the high inflation in Vietnam.(Figure 2) Figure 2 : Fiscal Deficit and Trade Deficit (2003–2008)
Source : IMF, General Statistics Office of Vietnam
C.Impact on Trade
The global financial crisis has affected severely on Vietnamese exports. After joining the WTO, Vietnam's trade has become depend on global

American Bankruptcy Case Study
Starting from the problems of failure to pay housing loans (subprime mortgage defaults) in the United States (U.S.), then bubbled damaging crisis
banking system not only in America but expanded to Europe and to Asia. Successive causes a domino effect of the solvency and liquidity of financial
institutions in these countries, which among others led to the bankruptcy of hundreds of banks, securities firms, mutual funds, pension funds and
insurance. The crisis then spread to parts of Asia, especially countries such as Japan, Korea, China, Singapore, Hong Kong, Malaysia, Thailand,
including Indonesia, which happens to have long had precious letters these companies.
Of the various criticisms of the experts, that the problem was triggered...show more content...
Lehman Brothers announced a gradual loss before bankruptcy. On June 16, 2008, the company announced losses worth 2.8 billion U.S. dollars for
the second half of 2008. Followed by a loss of 3.9 billion dollars in the third half of 2008 (September 10) and resulted in bankruptcy announcement on
September 15, 2008. A similar shock is almost the same experienced by Merryl Linch, Citigroup, AIG and various other large financial institutions.
This reflects the weakening of the real sector with the bankruptcy of major U.S. companies like General Motors, Ford, and Chrysler that threaten
thousands of its employees work. Sure enough, the U.S. unemployment rate reaches 6.7% increase in line with the increase in pessimism among
consumers and investors during the period September to November 2008. It is the job separation rate (FLE) in the 34 largest last year. Recorded
533,000 employees laid off and reached a total of 1.91 million in 2008. (source: the U.S. labor department). Along with that, on November 30, 2008,
the U.S. government also announced a reduction in the value of real GDP for the part–III of 2008 by 0.3%.
Similarly also in Europe, the banking crisis in Europe was marked by problems at a small bank in the UK, the Bank Northen Rock, in mid–2007.
Northern Rock is a true small–scale private bank in the UK. However, when there Gonjang–ganjing crisis in August 2007 and the bank became the
spotlight. Withdrawal of major funding by the client

The Greek Financial Crisis Essay examples
The Greek Financial Crisis
Ever since the end of 2009, Greece has been involved in a financial and economic crisis that has been record breaking and shattered world records in
terms of its severity and worldwide effects. The Greek government, since the beginning of the crisis, has attempted to take several governmental
measures to try and "stop the bleeding," including economy policy changes, dramatic government spending and budget cuts and the implementation of
new taxes for citizens. In addition to this, the government has tried to alter the perceptions of Greek government and economy by the rest of the
world in an effort to appear both more liberal and more democratic. Greece has also been working to privatize many previous...show more content...
As far as Greece's role in creating this crisis in the first place, it can be said that Greece is at fault for a variety of reasons. The media has been
focusing on the corrupt political system and infrastructure, the lack of competition in the private sector, the wastefulness and inefficiency of the public
sector and a flawed tax system as causation for this mess. When the public sector was expanded in the 1980's, Andreas Papandreou was given various
agricultural subsidies and grants to do with what he pleased. This enabled the funding of certain post–World War II groups to heal political wounds and
fund unions and other special interest groups to aid his political capital and strength. The policies enacted in this decade allowed for the increase in
power and funding of the middle class by creating a vast amount of inefficient public sector government jobs for citizens. This resulted in an increase in
the levels of inefficiency, bureaucracy, corruption and wasteful spending coupled with the increase in wages, pensions and benefits. This proceeded to
drain through government money and resources, and did not breed a culture of highly motivated, efficient and effective government employees. A high
amount of debts accumulated as the nation continued to proceed in this way, using state money to subsidize failing businesses

The Problem Of A Economic Crisis
The aim of this report is to understand what happened globally in economy for the last 7 years in order to build an affective and precise managerial
strategy for Global Hotel in to generate profitability and create a successful business.
What is the meaning of crisis and economic recessions?
Business Dictionary is defining crisis as "a situation in witch an economy experiences a sudden downtown brought on by a financial crisis"
(BusinessDictionary.com, 2014).
The major sign of an economic crisis is the falling of GDP, the drying up of liquidity and rising or falling of prices generated by inflation or deflation.
One form of economic crisis is the recession.
The National Bureau of Economic Research is defining economic recessions as "a significant decline in economic activity spread across the economy,
lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment, industrial production and
wholesale–retail sales". More specifically, recession is defined as when businesses cease to expand, the GDP diminishes for two consecutive quarters,
the rate of unemployment rises and housing prices decline." (Morah, 2009)
The reasons of world recession?
The actual economic crisis were starting in 2008 with a financial crisis that had spread though the USA and became quickly almost global, affecting
world economy.
David Kotz, considered that world economy faced not just a severe economic and financial crisis, but structural, neoliberal

Venezuela Crisis Essay
The oil–rich Bolivarian Republic of Venezuela, located on the northern coast of South America, was for many decades considered among the
wealthiest nations in the entire continent. While having the largest proven oil reserves in the world has often proved a tremendous boon for
Venezuela, the very black gold that has been the cause of its success has also proven to repeatedly be its kryptonite. Over half of the nation's Gross
Domestic Product stems from petroleum exports – which equates to approximately 95% of total exports. It is really not too hard to imagine what
drastic consequences shifts in global oil prices could have on the economy. With the huge glut in old prices that began in 2014/15, the Venezuelan
economy took a complete nosedive....show more content...
He had established Mercals, or people's markets, where various basic goods were distributed by the state at highly subsidized prices. A few years into
power, in 2006, just short of 16,000 stores across the country was offering subsidized goods at approximately 30 percent less than market prices
(Weisbrot and Adndoval 2007, 2). This led to over 9 million people purchasing their food at Mercals by

Essay On The 2008 Financial Crisis
The 2008 financial crisis can be traced back to two factor, sub–prime mortgages and debt. Traditionally, it was considered difficult to get a mortgage if
you had bad credit or did not have a steady form of income. Lenders did not want to take the risk that you might default on the loan. In the 2000s,
investors in the U.S. and abroad looking for a low risk, high return investment started putting their money at the U.S. housing market. The thinking
behind this was they could get a better return from the interest rates home owners paid on mortgages, than they could by investing in things like treasury
bonds, which were paying extremely low interest. The global investors did not want to buy just individual mortgages. Instead, they bought...show more
content...
The new lackadaisical lending requirements and low interest rates drove housing prices higher, which only made the mortgage backed securities and
CDOs seem like an even better investment. Now consider the housing market which had become a housing bubble, which had now burst, and now
people could not pay for their incredibly expensive houses or keep up with their ballooning mortgage payments. Borrowers started defaulting, which
put more houses back on the market for sale. But there were not any buyers. Supply was up, demand was down, and home prices started collapsing. As
prices fell, some borrowers suddenly had a mortgage for way more than their home was currently worth and some stopped paying. That led to more
defaults, pushing prices down further. As this was happening, the big financial institutions stopped buying sub–prime mortgages and sub–prime lenders
were getting stuck with bad loans. By 2007, some big lenders had declared bankruptcy. The problems spread to the big investors, who had poured
money into the mortgage backed securities and CDOs. They started losing money on their investments. All these of these financial instruments resulted
in an incredibly complicated web of assets, liabilities, and risks. So that when things went bad, they went bad for the entire financial system. Some
major financial players declared bankruptcy and others were forced into mergers, or needed

Venezuela Economic Crisis Essay

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Venezuela Economic Crisis Essay