Venezuela was once a relatively rich country. It had a solid middle class, a robust oil industry, reasonably good property rights, and on the whole was solidly the “emerging economies” camp.
The same could be said of Zimbabwe which once also boasted a relatively high standard of living, a middle class, and at least some rule of law.
Both countries were knocking on “developed” status. But something happened on the way to this rendezvous with the 1st world, socialism.
In both countries despotic leaders could not resist expanding the state into every nook and cranny of life. In both countries these despotic leaders saw that a free society and a free economy threatened their power. In both countries wealth left when it could. In both countries, as land and businesses were seized from enemies of the regime, society descended into chaos. In both countries the currency became worthless. In both countries despair became the norm, when prosperity was there for the taking.
(From The Business Insider)
Inflation in the stricken South American nation of Venezuela hit an annual rate of 830,000% this year to October, according to new data released this week to the country’s parliament.
A report published by a coalition of opposition parties said the annual rate had almost doubled since in the month since the latest report was published. In the year to September, inflation stood at 488,000%.