Prime Minister Thatcher once famously observed that socialists “always run out of other people’s money.” But what actually happens when socialism runs out of money?
Venezuela, a once wealthy nation with black gold coming out of the ground, is a test case.
The socialist regime ran out of other people’s money, and then out of money, years ago. The government met protests by its starving population with a 40% minimum wage hike. That’s the usual socialist solution to what leftists call ‘income inequality’. The problem is that 40% of nothing is still zero.
The “Strong Bolivar” introduced by former dictator Hugo Chavez, who died of an overdose of Cuba’s socialist medicine, leads the world in one economic category: a 3,000% inflation rate. Currently a dollar will buy you 111,413.23 bolivars. Wait a while and there will be a better bargain in bolivars because economists are forecasting a 30,000% inflation rate. In Venezuela, even the poorest American can become a millionaire in bolivars. The only question is why would anyone actually want bolivars?