YOU NEED TO RETWEET THIS SO THAT MANY ZIMBABWEANS UNDERSTAND WHAT IS HAPPENING TO THEIR MONEY!
An elderly Zimbabwean social media follower asked me, "Why does Prof. Steve Hanke @steve_hanke say that Zimbabwe has the highest inflation in the world, and why is it getting worse?"
Prof. Hanke is a renowned economist who has been measuring Zimbabwe’s inflation for over five years.
I used the following example to explain to the elderly lady.
Zimbabwe’s national drink, Mazoe, was US$4.50 in April, and today it is US$7.75.
That is an increase of US$3.25 in just five months.
This is why Zimbabwe has the highest inflation in the world, it is a failed and dysfunctional economy, but I need to explain more.
The inflation rate for Mazoe between April and September is 72.22%.
To give you an idea of how bad this is, the overall inflation rate in South Africa is 5.1%, and in Botswana, it is 3.9%.
The Zimbabwean government is run by a president who operates criminal cartels that steal money from the government.
For example, an internet server that cost US$4,500 was sold to the government for US$1.5 million.
Ten internet servers cost US$45,000, but through Mnangagwa’s criminal networks government is billed US$15 million.
The sale of an internet server at a significantly inflated price as happened impacts inflation because of the money supply.
Money supply is the total amount of money available in an economy at a particular point in time.
The US$1.5 million per server is paid in foreign currency, government has to print local currency to buy that foreign currency, and that increases money supply!
If the government pays for the server using newly printed money or by taking on new debt, it increases the money supply.
When more money is in circulation, prices rise, contributing to inflation.
So, this has nothing to do with supermarkets or manufacturers being greedy.
It is caused by Emmerson Mnangagwa’s criminal cartels that use public procurement to loot government money increasing money supply.
Overpaying for goods or services leads to a misallocation of resources.
In this case, the $1.5 million per internet server could have been used for other essential services like healthcare, infrastructure, or investments that could have improved the economic productivity or well being of Zimbabweans.
That is why Zimbabwean hospitals have no medication or medical equipment, that is why you don’t have clean drinking water or modern books in schools.
That is why civil servants and pensioners get paid peanuts and that is why everything is now very expensive in Zimbabwe.
That is the cost a country pays for looting and having a corrupt leader who uses criminal cartels to siphon public money using public procurement also known as tenders.
Inflated prices for goods and services distort market prices, making it difficult for consumers and businesses to make informed decisions.
This leads to inefficiencies and higher costs for consumers, further contributing to inflation.
Today Mazoe costs US$7.75 in OK and Bon Marche the biggest supermarket group in Zimbabwe.
In April the same drink cost only US$4.50, when Mugabe was in power it cost US$2.50.
@BIGBADBUCC @S_Phola__ I like how people debate about a book written at least 10 years after the lead character died.we can’t even agree on events today that were caught on camera even live broadcast a week ago. So she is entitled to her thinking as much as the enlightened people here are also too
@daddyhope I always laugh when I see this, imagine till today they are no accurate maps yet we spoon feed children capital cities in other countries. If we had our collective brains together we’d run this ship called earth but we’d rather look like clowns for others
People would rather spread misinformation instead of simply doing cursory research. The way these grifters and concern trolls are acting, you’d think Imane Khelif was just Mike Tysoning dainty women left and right.
She has NINE losses. She was in the last Olympics and didn’t win anything! Only 11% of her victories are knock outs! Shes from a country where you’re not even allowed to transition if you wanted to.
To the hateful and ignorant this doesn’t matter and they don’t know that because they found out who this was recently, and Khelif is just someone to be used in the culture war.
@ThembaDukie@daddyhope @uNgwaloNgwalo Again people who fail to look at the cold hard facts.Get them from your Police especially in USA where its public knowledge.Illegal immigrates do cause crime but it’s so low and getting lower but politicians just like to lie.Unless the police are also involved with the immigrants