The people of Venezuela have been losing their national wealth for years, partly due to severe inflation (see last week's posts, Tuesday-Thursday). They have the highest inflation rate in the world at 63.4% as reported in September.
Here's an article of last May from Forbes explaining the situation:
"From the 1950s to the early 1980s, Venezuela had the strongest economy in South America. Today, it’s one of the most repressive regimes in the world, especially with regards to property rights."
How does very high inflation affect people?
- "workers lose purchasing power and are less able to obtain what they need including the basic necessities of life"
- "it tends to create a two-class system, eliminating the middle-class"
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