As the world watches Venezuela experience the consequences of its socialist policies, the nation’s inflation rate surpassed ten figures.
As IJR previously noted, Venezuela’s inflation rate has been rising for quite some time. In 2017, it reached 4,068 percent, which seemed very high at the time.
To put that into perspective, the United States’ inflation rate was 2.1 percent in 2017 and hasn’t risen much higher in 2018.
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While the causes of Venezuela’s economic predicament are debated, it certainly didn’t help when the government printed more money in an attempt to help the economy.
The country’s government planned to try and control the inflation rate by creating a new currency that simply removed five zeroes from the bolivar.
Unfortunately for Venezuelans, the inflation rate is expected to reach two million before the end of December and, according to the International Monetary Fund, will increase by ten million percent in 2019.
Earlier this year, IJR reported on how the government created untenable conditions for business, leading to nearly half of them to close shop. Alongside rampant inflation, the government dramatically raised the nation’s minimum wage and threatened jail time for businesses that raised prices.