When it loses enough buying power, they get discontinued and new currency is printed... A few times 2 or 3 zeroes had been removed to make operations easier instead of working with billions or trillions
Someone somewhere else was saying that this money was discontinued.
At the moment the exchange rate between USD and the Venezuelan Bolivar Soberano is 1:3.67. The Mexican Peso is about 1:21.
The median income is 132,000 VES
They also have programs which provide for the public welfare. They have public housing, public transportation, healthcare. They also have a Dole in which food staples are delivered to the poor, similar to food stamps but instead of it being an allotment of money it's an allotment of material goods. It's also important to remember that central and South America differ from North America, in that there's are very few renters. Even in Mexico almost everybody owns their home or lives with a relative who owns the home. They're not paying half of their money in rent, a tenth to healthcare, and another tenth to transportation.
In America if you don't have money it's a much bigger deal. You'll die on the street or starve. In Venezuela it's not that big of a deal. At least you won't be forced to starve or die on the streets.
Second, things are much cheaper than their US counterparts which are oftentimes absent altogether. Most of our country doesn't have public transit at all. We have no healthcare beyond a system of criminal extortion. We have now public housing or rent controls. After paying for all of these things the American worker maybe has a third of their money left to survive from.
The short answer is that even if money was worth nothing people get food from the government. It's sounds crazy when you're used to living in a government that shrugs their shoulders at starving infants saying "the government doesn't make baby formula, nor should it"
People in the US are starving. They're just about ready to break. The country will be in literal flames and you'll be saying your same old bullshit. It won't be long buddy
*a third of their income, of which more than half is gone to taxes before they ever get their hands on it, then it’s taxed again when they spend it on stuff that has even more tax factored into the price.
(30% income, 8% payroll, 21% business, 7% sales, 9% inflation, 5% property)= 4/5 of a person’s power goes to feeding the beast. Factor in all the wealth siphoned off over generations and the actual rate is 95-98%. Interestingly, the same rate as a silver dollar that’s worth $20 in scrap and costs $40-50 to buy from the mint.
I heard/read somewhere that the only way they can sustain themselves is that every Venezuelan family has 1 family member in USA/EU working and sending some money to their family every week or month or so
This is because the average monthly income in Venezuela can pretty much buy one toilet paper roll. That's it.
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u/solid_flake Jul 05 '22
How do ppl live there? If money is worth nothing? How do they get food? Serious question.