Posted on 08/21/2016 3:38:03 PM PDT by fella
President Nicolás Maduro Raises Minimum Wage 50 Percent
Venezuela’s national minimum wage was raised 50 percent this week, but experts warned President Nicolás Maduro the increase could result in closures to small businesses.
During a national radio and television broadcast, the president said the minimum wage will be set at VEF $22,076 (US $2,218) monthly, while the food bonus will be VEF $42,480 (US $4,269).
Maduro has bragged in the past about the 14 increases in minimum wage made over the last three years, but fails to address that the country faces the highest inflation in the world.
Economists predict the price of products will increase as salaries rise, except that many companies must face price controls set by the government.
Before the adjustment was announced by Maduro, Venezuelans spoke out through Twitter with the hashtag #AumentoIrreal.
The raise won’t even cover 20% of the cost of the basic food basket, will bring more hunger and misery for our people.
Each day we suffer more, there’s no production, no food, no security, no jobs… Maduro, resign now.
Francisco Martinez, President of Fedecamaras, the largest confederation of employers in Venezuela, said the wage increase may not only lead to massive firings, but could also trigger the closure of many businesses.
Martinez systematic increases “are a recognition of the failure of the economic model… all it does is generate inflation.”
He further criticized wage increases that “are not accompanied by any structural measure.”
Employers criticized the decision as “surprising,” while denouncing the government’s failure to comply with the International Labour Organization (ILO).
Making the problem worse
Economist and President of Datanalisis Luis Vicente Leon said without a change to the economic model, the announced wage increase will only worsen the inflation problem.
“Workers need constant raises to live among overflowing inflation,” he said. “But compulsive increases without changing the model makes the problem worse.
Leon stressed that “the decreed increase in wages does not compensate for past inflation and generates future inflation.”
Economics experts recommended opening markets, increasing production and stabilizing prices so increases have positive effects on the pocketbooks of Venezuelans.
While private enterprise must comply immediately with minimum wage increases and food tickets, public agencies have delayed bonus payments for food and increases in the salary since last February.
The government is reportedly indebted to more than two million employees, as there are institutions that have not paid the wage scale increases of 20 and 30 percent installed in February and May.
Throw in everyone with a an “h” or “bernie” sticker or sign as well. Three year tour.
A real edict ala 10-289 from the wun would not surprise me at all.
Hope we have some money for it.
The raise won’t even cover 20% of the cost of the basic food basket, will bring more hunger and misery for our people.
...
This statement exposes the myth that wage increases cause inflation. Even with a totalitarian government in charge, wage increases lag inflation, which is actually caused by currency devaluation that is the result of bad government policy.
That date should be “never”...
Let South America deal with it...
100%, Directive 10-289 will surly follow
EXACTLY, Chode...exactly.
Higher than Zimbabwe? Really?
All their economic problems are solved.
Take that, you greedy capitalist pigs! You and your pithy little $15/hr demands.
It was very transparent of Zimbabwe to those horse hockey pucks on their money.
A quote attributed to Albert Einstein goes like this; "Insanity: doing the same thing over and over again and expecting different results.
Mr Maduro has never read Einstein and doesn't need to as he is heavily guarded by armed soldiers and is comfortable with where his next meal is coming from. HOWEVER, he may need to read some history, specifically about how many autocrats are killed by someone they trust!
Noting that the illustration on the Zimbabwe notes resembles a pile of fecal matter, I wonder how much a roll of toilet paper cost and if it would have been better for the notes to have been softer?
The government workers and people on welfare trap reminds me of these red necks throwing pig bait in water to see them eaten by alligators as a mean of controling their population. The pig still love the people baiting the and come for it. They only fear the gators but cannot make the connection, thinking it is a natural game.
but fails to address that the country faces the highest inflation in the world....
It’s not what you make, its what monetary remuneration for your labor, services or goods will get you in return. US currency is definitely suffering from inflationary devaluing of it’s worth. This government will not track actual inflation. Restaurant meal went from $17.99 to 24.99 in 3 years. That’s 39% in 3 years. Stimulus QE cash bubble burst time.
Hey, that’s enough money to walk to colombia and buy two packages of TP instead of onw. Yahoo
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