Consumer Prices In Venezuela Rising More Than 40,000% Annually

Inflation in Venezuela is increasing annually at a rate of roughly 40,000%, according to an economics professor, Steve Hanke, from Johns Hopkins University who has been busy keeping track of prices for more than a decade in the country.

It's alleged that annual inflation recently topped the 40k mark, at 41,838 percent. As things have been getting wrose economically, millions have seen their standard of living drastically decline and recent studies have found that roughly 90 percent of civilians had been living in poverty.

So long as the Maduro regime remains in power, not many people see a true solution coming about or a turnaround of the continued decline. By the looks of how they've been dealing with the situation, we can guess that it will continue to collapse. And while bureaucrats tinker with possibilities of intervention, it's the people who suffer tremendously in the meantime.

“Everyone who has a bolivar wants to get rid of it like a hot potato because they expect it’s not going to be worth anything tomorrow.” - says Hanke.

You can find many people on the side of the street weaving worthless Bolivar fiat currency notes into works of art; they're adding value to it by painting on it, drawing, or turning it into a bag etc. People have had to get creative with finding a means to try and survive.

To get an idea of just how bad things have gotten for those living in Venezuela, consider that roughly a year ago a bag of groceries that cost you about $15 dollars, today is going to cost you about $3,960.

The worsening conditions, both politically and economically, have forced millions of people to flee the country and go looking for a better life somewhere else for themselves and their families. For those who've remained in the country, they've been facing a dramatic increase in violence, political turmoil, long lines at the market, and shortages of medical supplies. For those who live in Venezuela who have family living outside of the country, in the U.S. and elsewhere, many have been fortunate enough if they've been able to have those friends and family send them supplies while they have remained living in the country as well.

For some people in Venezuela who haven't been able to get their hands on any bolivar bills or who haven't found it convenient to deal with them, they've turned to bartering instead. You can find many taxi drivers, vendors, and other business professionals, who are willing to barter and exchange their goods and services if you've got something that they value.

It's alleged that the government in Venezuela has been creating electronic money at a rate never before seen anywhere else in the world.

In 2017, it's estimated that the monetary base in Venezuela (physical + electronic currency in circulation) increased more than 6,000 percent. In 3 years time, it's estimated that they increased it by over 50,000 percent.

Creating more money hasn't been the solution to their problem, it's only exacerbated the issue. There are some very clear economic shortcomings that have resulted from all of their central planning and until they acknowledge the failure of the interventionism, and the role that it played in contributing to the crisis, how can we expect anything to change for the better?

Pics:
Pic 1- Carlos Eduardo Ramirez/Reuters
Pic 2 - Jorge Silva/Reuters
Pic3 - Carlos Becerra/Bloomberg

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