Posted on 01/16/2015 7:16:35 PM PST by Kartographer
This one must be solved fast because the regime cannot fire bureaucrats and misiones beneficiaries fast enough. Never mind that cutting off 20% of its payroll in bureaucracy or welfare would push us further into recession, with even less consumers, more social instability.
The regime is seriously considering increase taxes further which in today's context would be lethal for the economy as businesses still alive barely make it through. Reminder; if you have 60% inflation your business must have benefits of 61% or start losing its value. That is, if your business does not make more than inflation you erode your capital and you are better off closing up the shop. I can assure you that in Venezuela today no one makes 61% return today. We are heroes just by keeping payroll.
No, the ONLY way to at least solve in part the cash problem at home is to (drum roll) increase the price of gas. The good news here is that gas is so cheap and inflation so high that actually bringing the price of gas to at least its cost of production and distribution will not affect much companies costs. I am willing to bet that even transport companies have their gas cost below 1% of all of their other costs. Bringing up that cost item to 5 or even 10% will not force them to increase their prices much. Do the math.
Granted, you may not want to go from zero to actual cost in an instant but you could explain to the country that there will be gas price increases every month for a year until people start paying the true price of gas.
(Excerpt) Read more at daniel-venezuela.blogspot.com ...
Same problem as here, different in degree.
/johnny
Obola is mirroring Venezuela step by step. What a tool.
Let it go and then hang the communists as a lesson to every other s**thead who thinks that socialism works anywhere.
the problem is communist government. 100% described in one sentence.
Millions destitute. The flower of communism.
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