Zimbabwe & Venezuela

There are some similarities between Zimbabwe’s hyperinflation in the 1990s and Venezuela’s hyperinflation in 2017. Inflation was caused by government money printing to support socialist policies and government overspending. Both countries had obliterated free market principles, ignored property rights and then suffered downturns in economic activity.

 

Venezuela’s government nationalized its oil drilling in 2010 and over borrowed based on their large oil reserves, but didn’t consider the fact that $100/bbl oil might decline to $40/bbl oil. 

 

Zimbabwe’s government evicted “white” farmers and gave these farms to “black” amateurs who didn’t know how to operate these farms. 

 

Norb Leahy, Dunwoody GA Tea Party Leader