Wow, inflation at one million percent! Yes, kids, isn’t Socialism fun? As the “Sage of the Bronx” Alexandria Ocasio-Cortez tells it, Socialism is all about “healthcare, housing and education.”
Strange, though, she does not mention food…because in Socialist Venezuela, a 2016 study found that 15% of Venezuelans are eating from the trash, while others are killing flamingos and anteaters for food.
But this political cartoon from A.F. Branco sums it up best:
Venezuela’s inflation rate is already at least 46,000 per cent, but things are about to get much worse.
Yesterday, the International Monetary Fund predicted that the country’s real GDP will drop about 18 per cent this year — the third straight year the economy will contract by double digits. The IMF also says that inflation will top one million per cent by the end of 2018 if the government of Nicolás Maduro persists in trying to fill the gap by printing more and more money.
The precedents aren’t good. The IMF compares the situation to 1923 Germany, where 29,000 per cent annual inflation fueled the rise of Hitler and the Nazi Party. Or Zimbabwe in late 2008, where the daily inflation rate was 98 per cent, meaning that prices doubled every 25 hours.
“The collapse in economic activity, hyperinflation, and increasing deterioration in the provision of public goods (health care, electricity, water, transportation, and security) as well as shortages of food at subsidized prices have resulted in large migration flows, which will lead to intensifying spillover effects on neighboring countries,” notes Alejandro Werner, head of the IMF’s Western Hemisphere department….
Workers at the state-owned electricity company are striking over what they call “hunger wages” that are now worth the equivalent of $2.50 Cdn a month. A walkout is unlikely to improve the situation in a country where blackouts are now a regular occurence, disrupting life and municipal water supplies in major cities.
Most cars are now off the roads, as drivers either can’t afford gas or find the parts to keep them going.
And the medical system, once a source of national pride, has all but collapsed, with chronic shortages of drugs and supplies and doctors and nurses fleeing the country….