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IPFS News Link • Economic Theory

Lessons From An Underground Economy

• Organic Prepper - J G Martinez

How is it possible to survive a nation with inflation rates of 20%/month and 1700%/year? The answer? The underground economy. This is the level of hyperinflation we have found ourselves with here in Venezuela, and considering the spread of inflation worldwide, it would be well worth the prepper's time to glean what we can learn here.

Virtually everything you read dictates inflation on this scale necessitates civil war.

Yet Venezuela hasn't seen this. Why not? Why are the streets not being taken by armed civilians?

While the main reason revolves around 20 years of disarmament and anti-self-defense teachings, I would argue that there is a second reason we haven't delved into full on anarchy as well: our underground economy.

Underground economies keep people fed.

I've lived in four different and fallen South American countries, and it's been the underground economy which has kept people going in each case.

When I used to work in the Venezuelan oil industry, our salary was taxed heavily just like everyone else's. As expected, these taxes can quickly make it hard for a family to pay its bills.

But the underground economy? It's completely unregulated.


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