Purchasing power of the Venezuelan fell 96% since Maduro arrived
Since coming to power, Nicolás Maduro decided to repeat the practice of his predecessor, Hugo Chávez, and decree several increases of minimum wage each year, supposedly with the intention of protecting the income of workers. But although the fortnights got bigger and bigger, the money was reaching less.
Figures from the Econometric firm highlight that, although Maduro's management has increased the minimum wage more than 20 times, the increase has been only nominal. In real terms, purchasing power has decreased and Venezuelans have become poorer every day.
The firm highlights that between December 1998 and March 2013, while Chávez was in the presidency and the country had the highest revenues from oil sales, the purchasing power of the integral minimum income (minimum wage plus food bonus) had an increase of twenty%. But between April 2013 and December last year, during the management of Maduro, purchasing power fell 96%.
Henkel García, financial analyst and director of the firm, said that when comparing December 1998 with December 2017, the purchasing power of the integral minimum income fell 90%. "Only during December 2017 the purchasing power of the integral minimum income fell 50%. That month there was no salary increase and inflation stood at 91.8%, according to the price index measured by Econometric, "he said.
This month came into force the most recent salary increase decreed by the Executive, which brought the minimum integral income from 456,507 bolivars to 797,510.4 bolivars, meaning that workers will charge 341,003 bolivares more, but Garcia assured that if no action is taken that favor the increase in the supply of goods, the purchasing power will continue in a tailspin.
Humberto García Larralde, economist and president of the National Academy of Economic Sciences, added that the fall in purchasing power is the result of a series of bad economic policies repeated year after year by the government. He said that the decision of the Central Bank of Venezuela to finance the fiscal deficit with the creation of money without support has accelerated inflation, which ends up reducing the purchasing power.
He pointed out that only last year BCV financing to non-financial public companies multiplied by 22. "There is no way to contain prices when economic activity is declining, but the amount of money on the street is increasing. We economists call on the government to honestly correct the situation and correct this because it is starving the citizens. "
The analysts referred that the special bonds that the government has been approving through the so-called "carnets de la patria", what they do is bring more inflation.
They maintain that since the presidential elections are scheduled to take place this year, it is more likely that the Executive will continue to inject more money into the economy and, given the limited supply of goods, what is going to be generated is more inflation.
Nobody holds
Neither people who earn minimum wages, nor those who charge a little more, can withstand the accelerated increase in the prices of goods and services. This got out of control and we can barely survive. I collect more than a minimum salary, between salary and bonus I collect a million bolivars, but when I go to the market what causes me is to start crying. A kilo of meat sold in more than 290,000 bolivars, and the hard white cheese already exceeded 350,000 bolivars, this can not stand because of that there are protests everywhere.
The daily life of Daniela Rodríguez, a worker of a company of parcels is not different. Until recently he used his credit cards to complete the market, but the limit fell short for his needs. "At the end of last year I increased the credit limit of one of my cards, they took it to 350,000 bolivars, but that's nothing. You go to the market and then you finish it in one or two products. This is very distressing. "
The women rejected the statements of the Minister of Agriculture and Vice President of the Economic Area, Wilmar Castro Soteldo, who a couple of weeks ago affirmed that the new increase in the minimum wage can not be measured by the products that it allows to acquire, but with the peace that, In his opinion, lives the country.
"What they do is make fun of one who must figure out every day to see how he brings food to his house. I do not want to leave the country, but it is one of the few options that leave us, "said Hernández.
Like her, hundreds of Venezuelans have decided to leave the country in recent months pushed by the economic, political and social crisis, because contrary to what the government said on many occasions, the minimum legal remuneration in Venezuela is the lowest in the region .
García Larralde insisted that it is urgent that measures be taken to stop inflation and the deterioration of the quality of life. "The torque controls must be removed