Thursday, 12 July 2018

Five bananas and two eggs

From The Economic Times we have a story about haircuts in Venezuela.

In broke Venezuela, a haircut costs 5 bananas and 2 eggs

Imagine living in an economy where barter is the currency and where you have to pay food items such bananas or eggs for something as small as a haircut. That's exactly what is happening in Venezuela.

In the hyperinflationary South American country, where bank notes are as difficult to find as chronically scarce food and medicine, Venezuelans are increasingly relying on to barter for basic transactions.

Once the richest country of Latin America, Venezuela - a country that sits on world's largest oil reserves - today stares at a bleak future. People in this oil-rich country are scrambling for money, food and basic necessities, swapping different items and even doing chores for packages of flour, rice and cooking oil.

"There is no cash here, only barter," said Mileidy Lovera, 30, while hoping to trade a cooler of fish that her husband had caught for food to feed her four children, or medicine to treat her son's epilepsy.

Appalling of course but what did one of our most prominent political experts say about the cause of this disaster? Do we have any beguiling insights or pointers to a less disastrous future for those struggling Venezuelans such as Mrs Lovera?


robbo said...

My son told me that the bench mark for oil is Brent crude...he said venezuelan oil is not very good!

Sam Vega said...

Comrade Jeremy's comment is spot on. I don't see why you are taking issue with it. The poor do indeed matter, and wealth can be shared.

For example, if a Venezuelan is poor, that matters, and he'll ask to share your banana.

Sackerson said...

I've seen a lot of comments blaming it all on socialists. I think it's more complicated than that - like the history of Cuba.

wiggiatlarge said...

Well I get a big discount for a haircut if I take in some french beans yellow courgettes and some toms, I thought bartering was on the up !

A K Haart said...

robbo - yes I believe there isn't enough money to maintain the quality.

Sam - maybe Jeremy would share his banana.

Sackers - I'm sure it's more complicated, but as far as I can see socialism was used to sell it.

Wiggia - what about winter haircuts?

wiggiatlarge said...

Ah winter haircuts, a very valid point, it makes the annual discount rather less, but still........though I did get a totally free two haircuts for designing the planting for his new pond area so all is not lost........