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Amid Collapse, Venezuelan President Doubles Minimum Wage
invite response
2016 Aug 19, 7:32pm 2,204 views 6 comments
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Strategist
2016 Aug 19, 7:35pm
What a loser. You can increase the minimum wage to the moon, but where will the food and toilet paper come from?
What a loser. You can increase the minimum wage to the moon, but where will the food and toilet paper come from?
At a certain point the money becomes so worthless that you can USE it as toilet paper. AND paper is a good source of fiber, makes you feel full after consuming it. See, problem solved - heck, he should triple minimum wage.
indigenous
2016 Sep 30, 6:37am
Trump would cut it by 9/10s and make Venezuela great again.
Venezuelans would have a better chance if they did. Chavez nationalized the industry which took away price discovery. They muddled along until the oil prices dropped which exposed the lack of price discovery.
Since you are a mutt you wouldn't understand.
Strategist
2016 Sep 30, 6:46am
Trump would cut it by 9/10s and make Venezuela great again.
Constantly doubling the minimum wage has certainly not worked for Venezuela. Real wealth comes from producing more goods and services, not by increasing wages.
In a demonstration of a complete disregard for the hardships that Venezuelans experience day in and day out, last Friday on August 12th Nicolas Maduro, current President of Venezuela, ordered another raise of the minimum wages and of the food allowance, making this the third time that minimum salary has been raised during 2016.
This will not only drive inflation even higher (right now is estimated at 490% and projections before this decision indicated an inflation over 700% by the end of 2016), it will force businesses out of the race, leaving an even higher percentage of the population unemployed.
In a world where many people demand a raise in minimum wages, Venezuela is slowly but surely learning the lesson. These increments are just a political tool in the hands of a socialist government that does not know how to “live within their meansâ€, which is simply put, don’t spend more than what you earn.
Currently, minimum wage in Venezuela is 15,051 bolivares, the equivalent of $USD 23.40 with a food bonus equivalent of 18.585 bolivares or, $USD28.90. The amounts will increase to 22,576 bolivares ($USD 35.11) and 42,480 bolivares ($USD 66,06) respectively.
For Venezuelan economist Gabriel Alvarado DÃaz, “in Venezuela, there is an aggravating issue and that is the fact that during the last 5 years production in all industries has decreased dramatically, mainly due to the precarious situation and legal risks in which companies operate.†According to him, there are two overlapping situations: On one side, production decreases, which brings a shortage of goods and services, and on the other side, domestic demand is stimulated because the average Joe has more money. It’s easy to see that if there is more money but fewer goods, those goods will be more expensive, right?
Apparently, not so, because government officials insist on defending the decision.
The impact on small and medium-sized businesses is negative to the extreme, and this can translate in bankruptcy for many companies, and thousands of Venezuelans losing their jobs. This systematic increase of minimum wages is nothing more than a recognition of the failure of an economic model that can only generate more inflation.
http://prntly.com/2016/08/17/amid-collapses-venezeulan-president-doubles-minimum-wage/
#WhenImHungryIEatMyShit