The reason why Venezuela is seeing skyrocketing inflation rates of up to 700% has largely to do with its political and economic system, socialism. Many an immigrant from this country to the west will tell you that socialism has brought Venezuela to its knees.
Socialism as explained by Adrian Jose Velasquez Figueroa took its root in the country when people wanted a drastic change in policy and governance. That occurred with the rise of Hugo Chavez in Venezuela. For a time things in Venezuela seemed to get better for the masses but the improvement would not last long. It would deteriorate rapidly and its climax is being witnessed right now.

Socialism sounded appealing to many in Venezuela. It promised redistribution of wealth. There was a promise of great equality for all. However, in socialism the government controls all the means of production. In reality, when the government controls the means of production the result is often a complete if not total failure. Quality suffers, product prices become too high or products became unavailable. There is often mismanagement.

“Despite the promises of equality, socialism actually leads to greater inequality” added Velasquez Figueroa. This is because socialism is a system where most of the power is in the status quo or the government. Naturally those in power will be hesitant to relinquish their lifestyles and power. They will fight against insurrection by restricting freedom of the press and then free speech. This is what we are seeing right now occurring in Venezuela. The socialist system there is bound to fail and collapse. It is already ripping apart at the seams right now.