Venezuelan President Threatens Factory Owners

In a speech to supporters, Venezuelan President Nicolas Maduro threatened to seize control of non-productive factories and imprison owners if they stop production, according to Associated Press.

His threat comes on the heels of an emergency decree granting him more authority, and he blames the “bourgeoisie” for worsening the South American nation’s widespread food and product shortages. Venezuela’s economy is on the brink of ruin, with opposition leaders gathering signatures to launch a recall referendum.

In a speech to supporters, Venezuelan President Nicolas Maduro threatened to seize control of non-productive factories and imprison owners if they stop production, according to Associated Press.

His threat comes on the heels of an emergency decree granting him more authority, and he blames the “bourgeoisie” for worsening the South American nation’s widespread food and product shortages. Venezuela’s economy is on the brink of ruin, with opposition leaders gathering signatures to launch a recall referendum.

Maduro is blaming the business community, but some owners cannot gain access to raw materials in order to sustain production and they are struggling in one of the worst performing economies in the world. Maduro and his predecessor, Hugo Chavez, have managed the economy ineffectively, but the heart of the problem is a lower-priced oil market.

Venezuela is an oil-production state and a member of OPEC, but Saudi Arabia’s policy of pumping excess oil into the market has hurt poorer oil-producing countries that rely on higher prices to maintain economic stability.

The government does not have the means to tackle the crisis, as leaders failed to establish a savings fund when oil prices were higher. State coffers are dry to the point where authorities cannot afford to import food items, leaving many stores and markets empty.

Corruption is another reason why the treasury is virtually empty, and while Maduro blames factory owners, he neglects to mention the systematic corruption that has been allowed to fester under his watch, and the opposition is not exempt from blame. Venezuela has also propped up a system where elites and politicians have taken wealth from the poor for private gain and raided vital social programs, notes Transparency International.

Because of the aforementioned factors, policymakers are unable to address the overwhelming number of issues Venezuela faces going forward, most notably lacking revenue, a devalued currency, inflation and a public health crisis. Many Venezuelans are needlessly dying due to an underfunded healthcare system, including newborns, and the opposition signed a decree allowing humanitarian aid to enter the country.

At this stage, Venezuela is on the verge of collapse, allowing the president to govern under emergency powers. Maduro’s expanded authority is making the situation worse, however, as he blames the wrong people and demonizes political opponents and conservatives, believing they are determined to destroy the economy to secure his ouster.

Venezuela’s divided political climate is another reason why the economy fails to gain traction. The opposition controls most of Congress, but Maduro’s appointed justices have the power to repeal congressional legislation and tie up the system.

With that, Maduro’s justices and political allies cannot protect him forever, as a recall referendum looms over his administration. The president has accused political opponents of using fraudulent signatures to fuel recall efforts, but his adversaries have denied such allegations.