Working Class Zimbabwean

Here's a blog post from a working class man from Zimbabwe who's seen his standard of living fall apart. He is part of the 20% of the population who is actually employed (yes, they have an 80% unemployment rate). 

When a government decides to print money to fund its services, it inevitably results in hyperinflation.  Hyperinflation, quite simply, hollows-out the middle class of a society. The rich are protected because they quickly move their assets to more stable foreign currencies or other real assets (e.g., real estate).  The poor either remain the same or become even poorer because basic food staples become more expensive. 

Before hyperinflation, the middle-class hold down decent jobs, rent their homes, and hold their life-savings in local currency. With hyperinflation, the value of their savings is effectively wiped out overnight. The purchasing power of their salaries decreases just as quickly and soon they are unable to maintain their standard of living. Business stagnates, investment stops, and jobs are lost across the economy. With extraordinarily high unemployment, the middle class becomes poor. 

The Zimbabwean government has done some bad things to its people, but printing money to pay for its expenses, thus causing hyperinflation, may be one of the worst.
 

What did you think of this article?




Trackbacks
  • No trackbacks exist for this post.
Comments
  • No comments exist for this post.
Leave a comment

Submitted comments are subject to moderation before being displayed.

 Name (required)

 Email (will not be published) (required)

Your comment is 0 characters limited to 3000 characters.