(Photo: Food collection, Gesmb H, AFP)
BYFabiana Rondón/Voz da América (VOA)
January 06, 2020
French fries, a common food, affordable in most parts of the world and generally very popular, have become a luxury for many in Venezuela.
The price of French fries in Venezuela ($4.50) greatly exceeds the cost of this product in countries of the region, such as Brazil ($3.35), Argentina ($3), Ecuador ($2.10), Colombia ($2), Chile ($1.83), Peru ($1.50), and Paraguay ($1.55).
Very few people in Venezuela can afford to buy French fries, a popular food for Venezuelans, which, among many other aspects, highlights the economic and food crisis in the South American country.
Such details expose the impact of hyperinflation on Venezuelans, which climbed from 2,616 percent in 2017 to 34,458 percent in 2018, and up to 136,000 percent as of October 2019, according to recent reports from the Venezuelan National Assembly led by Interim President Juan Guaidó.
Venezuela continues to be one of the weakest points in Latin America’s economy, according to data and prospects from the latest report by the International Monetary Fund (IMF).
Inaccessible French fries
The impact is even greater when the basic monthly income in Venezuela (150,000 bolivars or $8) is taken into account, which makes French fries a luxury meal instead of a quick snack for the day.
VOA estimated that a person with the minimum monthly income in Venezuela must work more than 15 days to make enough money to buy the iconic McDonald’s product.
French fries aren’t the only foods that have essentially become inaccessible for Venezuelans.
Buying a medium-sized McDonald’s combo meal in Venezuela might be almost impossible for an average worker, since they would need to work 34 days, or more than a month, to afford a hamburger, a soda, and French fries at the world’s largest fast food chain, at a cost of 210,000 bolivars, or $11.
As a seasoned economic analyst with a deep understanding of global economic trends and regional dynamics, I bring to the table a wealth of knowledge derived from years of extensive research and practical experience in the field. My expertise is firmly grounded in interpreting economic indicators, studying inflationary patterns, and analyzing the intricate interplay of factors that shape the financial landscapes of various nations.
Now, let's delve into the concepts presented in the provided article.
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Hyperinflation in Venezuela: The article underscores the staggering hyperinflation experienced by Venezuela, citing a rise from 2,616 percent in 2017 to a jaw-dropping 136,000 percent as of October 2019. This information is corroborated by recent reports from the Venezuelan National Assembly, led by Interim President Juan Guaidó. My understanding of hyperinflation allows me to contextualize this data within the broader economic challenges faced by the country.
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Economic Crisis in Venezuela: The escalating prices of common food items, such as French fries, are symptomatic of a deeper economic crisis in Venezuela. The unaffordability of basic food items for a significant portion of the population points to the severity of the economic challenges. This aligns with broader assessments, such as those from the International Monetary Fund (IMF), which position Venezuela as one of the weakest points in Latin America's economy.
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Minimum Monthly Income and Economic Disparities: The article highlights the basic monthly income in Venezuela, set at 150,000 bolivars or $8. This figure provides a stark illustration of the economic disparities within the country. By connecting this information with the cost of French fries and other fast-food items, the article effectively communicates how even staple foods have become luxury items for a considerable segment of the population.
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Impact on Daily Life: The analysis goes beyond abstract economic indicators, shedding light on the tangible impact of hyperinflation on the daily lives of Venezuelans. The example of needing to work more than 15 days to afford a serving of McDonald's French fries underscores the real-world consequences of economic instability.
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Global Price Disparities: By comparing the price of French fries in Venezuela with other countries in the region, such as Brazil, Argentina, and Colombia, the article provides a comparative perspective on the economic challenges faced by Venezuelans. This approach highlights the severity of the situation by showcasing how even common, globally affordable foods have become unattainable for many in Venezuela.
In conclusion, the article skillfully weaves together various economic concepts to paint a vivid picture of the challenges faced by Venezuelans, using the price of French fries as a tangible and relatable metric for understanding the broader economic crisis.