There’s a predictable checklist for
meltdowns in socialist countries, and it’s playing out with tragic regularity
in Venezuela. Nationalize agriculture? Check. Start government-enforced
rationing when the food supply dries up? Check. Seal the border when people try
to flee to buy food elsewhere? Check. The next step, and usually one of the
last before total collapse, is runaway inflation. That’s what we’re starting to
see in Venezuela.Rapid inflation, called hyperinflation by economists when it
gets really bad, is one of the deadliest poisons for any economy. The spiral is
usually triggered when a government prints too much money to pay its debts, and
prices start to rise.
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