President Donald Trump addressed the nation about the US capture of Venezuelan President Nicolás Maduro and his wife.
Last weekend, US special forces carried out a daring attack on Caracas, capturing the country’s now former dictator, Nicolás Maduro, and his wife. to take them to New Yorkwhere both were indicted on multiple charges, including narco-terrorism conspiracy and cocaine importation conspiracy.
What now? After Maduro was captured, President Donald Trump said the US would initially take over Venezuela’s government. “We will govern the country until we can achieve a safe, just and sensible transition,” he told reporters at Mar-a-Lago in Florida. “We cannot take the risk of someone else taking over Venezuela who does not have the interests of the Venezuelans in mind.”
But Venezuela’s recovery has some major challenges, not least the currency, the Venezuelan Bolivar. That has weakened by 469% in the past 12 months alone, according to data collected by Trading Economics.
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A motorcyclist passes an oil-themed mural in Caracas, Venezuela. (Javier Campos/NurPhoto/Getty Images)
That stabilization, if it were to occur, would also likely greatly reduce the risk of that happening another hyperinflation. In February 2019, inflation reached a record high of 344,509.50%, according to Central Bank of Venezuela data collected by Trading Economics. Economists say the actual rate was probably even higher.
Venezuela’s economic problems, including persistent increases in inflation, date back a long way. And the events of the past decades are largely the result of bad economic policies.
The first major one occurred in 1976, when the Venezuelan government nationalized all oil and gas companies operating in the country, which were then owned and managed by the Venezuelan state-owned company Petróleos de Venezuela (PDVSA). The nationalized companies included those previously owned by Mobil Oil, Exxon Corp. and Royal Dutch Shell, plus many others.
People walk on the street in Caracas on January 4, 2026, a day after Venezuelan dictator Nicolas Maduro was captured in a US attack. (Federico Parra/AFP via/Getty Images)
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The Trump administration is not happy about this event, even though it happened a long time ago. “We built the Venezuelan oil industry with American talent, drive and skill and the socialist regime stole it from us,” Trump said during a press conference on Saturday.
A Venezuelan Navy coast guard boat operates off the Caribbean coast on September 11, 2025. (Juan Carlos Hernandez/Reuters)
The following year, 2002, things got even worse. Venezuelan workers staged a general strike to pressure the president to hold new elections. The result? The Chavez government dismissed more than 18,000 highly qualified employees, mainly working at PDVSA. “From that moment on, the country stopped being industrial and became a political country,” says Earle.
PDVSA’s crude oil production collapsed. Production peaked at 3.5 million barrels of crude oil in December 1997 and has recently fallen to 1.1 million barrels. Part of this is the appointment of political favorites into the regime instead of skilled petroleum engineers.
In recent years, the economy has devastated the lives of many Venezuelans. “15% of the total population (approximately 4 million people) are in urgent need food aid,” said the United Nations World Food Program.
A person walks past a gas station of state oil company PDVSA, in Caracas, March 16, 2022. (Gaby Oraa / Reuters Photos)
The lack of food dates back to 2016, when supermarket food shelves were empty and zoo animals were starving. The following year, news broke that thieves had stolen animals from a zoo to eat them.
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The food shortages were mainly the result of poor economic policies. “It’s absolutely tragic,” Earle said. By 2018, the average Venezuelan had lost more than 20 pounds, he said. There was also a sudden return of the malaria epidemic in nine of the country’s 23 states. “The most likely outcome is to prevent chaos and ensure food and services are added to the mix,” he said.
