December 7, 2018

LATE-STAGE SOCIALISM: The Price of a Cup of Coffee in Venezuela Is Up 285,614% in a Year.

Instead of celebrating minimum wage hikes in hyperinflation-pummeled Venezuela, consumers now run as fast as they can to buy goods before the inevitable price increases.

In other words, higher wages are as much bad news as good news as they simply mean the printing press will run faster at the central bank and businesses will react accordingly.

So after President Nicolas Maduro raised wages by a staggering 150 percent last week — the sixth minimum wage increase in 2018 alone — perhaps it comes as no surprise that a cup of coffee in the Venezuelan capital of Caracas doubled from the week earlier to 400 sovereign bolivars or about ($0.76).

Unexpectedly.

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