Following years of a socialist regime, the ideology of socialism has finally caught up to Venezuela at a frantic speed. Venezuela’s inflation is expected to skyrocket to 1,000,000% by the end of the year thanks to the non-stop government printing.
Hyperinflation is nothing new as it was on full display in Germany in 1923 and in Zimbabwe in the late 2000s. Unfortunately, most politicians tend not to study history and try to kick the can down the road to future administrations through reckless spending.
Venezuela’s economy is expected to shrink 18 percent in 2018 which is the third consecutive year of a double-digit contraction as the country’s oil production continues to fall significantly.
The country’s economic collapse really kick-started when oil prices fell off the cliff nearly 4 years ago. Hundreds of thousands of Venezuelans have fled the country due to its ongoing hyperinflation. Hopefully, this serves as another reminder that free handouts will eventually catch up with you.