Vocabulary:
- instability /in-stuh-BIL-i-tee/
- recession /ri-SESH-uhn/
- decline /dih-KLAYN/
- stabilization /stey-buh-li-ZEY-shuhn/
- flourish /FLUR-ish/
[noun] – the condition of being likely to change or fail; lack of stability
Political instability has made it harder for the country to make progress.
[noun] – a period of economic decline, typically marked by a decrease in GDP, employment, and production
The country is going through a recession with many businesses closing down.
[noun] – a decrease in quality, quantity, or strength. (Verb) To decrease or deteriorate
There has been a decline in the purchasing power of the people in Venezuela.
[noun] – the process of making something stable or steady
The introduction of the U.S. dollar helped bring some stabilization to the economy.
[verb] – to grow or develop in a healthy and vigorous way, especially as the result of a particularly favorable environment
Some businesses in Caracas have flourished despite the difficult economic conditions.
Article reading:
Despite these challenges, some improvements have been observed in certain regions, such as Caracas, where economic measures introduced by the government allowed for some stabilization. Experts highlight that the use of the U.S. dollar, which was once restricted, has helped reduce the worst effects of hyperinflation. However, the benefits of these changes have not been felt equally across the country. For example, businesses in Caracas have flourished, while those in other cities continue to struggle. The inflation rate is predicted to reach 180-200%, which could lead to more people losing their jobs or reducing spending. In response to this, President Maduro has pushed for new emergency measures, including tax reductions and promoting local production. However, experts caution that these actions may not be enough to resolve the crisis in the long term, and Venezuela’s path to recovery remains uncertain.
Discussion Questions:
- Have you ever experienced a time when the economy affected your daily life? If so, how did it affect you? If not, how do you think the economy could impact your daily life?
- Do you know any businesses that have been successful despite economic challenges? If so, what do you think helped them? If not, what kind of businesses do you think could survive during economic hardships?
- Do you agree that lowering taxes is a good solution during an economic crisis?
- What role do international sanctions play in economic crises, based on what you know?
- What do you think could be done to prevent future economic recessions in countries like Venezuela?
Summarization
Describe:
- struggle
- decade
- revenue
- introduce
- tax