What the hell is that, you say? Why that is the inflation rate of Zimbabwe as of December 2008. That’s 65 followed by 107 zeroes for you lame math rejects who didn’t know off the top of your head! Here’s a visual.
Sorry, not enough room in the column. Let’s just say it’s a lot!
The year was 1980. Ronald Reagan was elected in response to the horrific economy courtesy of Jimmy Carter. The top income tax rate was 70%. The inflation rate was 12%. Mortgage interest rates were 16%. The unemployment rate was rising toward 10.8%. And the Zimbabwean dollar was worth $1.59. Not bad. Since then, not good. This is the result of hyper-inflation and what can happen when government screws with the system!
Zimbabwean President Robert Mugabe decided to undertake some wealth redistribution. Sound familiar? He decided to steal land from the rich, white people and give it to the poor, black people. Unfortunately, he didn’t also provide the knowledge or the means in which to farm it, and food production plummeted. This plunged the economy into depression and they have been playing tricks with the money supply since then in an attempt to artificially resurrect it. The inflation number you see above is the result. Remember, in 1980, Zimbabwe was not a poor country. It was brought down by an out of control government. There are lessons for us to learn. Many will scoff and say that could never happen here. Funny, they said the same thing there too!
Here’s a little glimpse at life in Zimbabwe with a country full of billionaires!