Monday March 8, 2021
  • Venezuela
  • Mexico
  • Colombia
  • Chile
  • Brazil
  • Argentina
  • Podcast
Versión Español
PanAm Post
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact
No Result
View All Result
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact
No Result
View All Result
PanAm Post
No Result
View All Result

Home » With New Wage Increase, Venezuela Braces for Worsening Inflation, Layoffs

With New Wage Increase, Venezuela Braces for Worsening Inflation, Layoffs

Sabrina Martín by Sabrina Martín
August 19, 2016

Tags: inflation in Venezuelascarcity in VenezuelaWages in Venezuela
0
0
SHARES
0
VIEWS
FacebookTwitterTelegramWhatsapp
Responding to the salary adjustment, Venezuelans through Twitter, positioned the #AumentoIrreal hashtag with which users say is a sham and propaganda by the Government. (Yoyopress)
Responding to the salary adjustment, Venezuelans through Twitter, positioned the #AumentoIrreal hashtag with which users say is a sham and propaganda by the Government. (Yoyopress)

EspañolVenezuela’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).

  • Read More: Venezuelan Military Officers Convicted of Drug Trafficking in Paris
  • Read More: Venezuela President Nicolás Maduro Spent $400,000 Celebrating Fidel Castro’s Birthday

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.

https://twitter.com/ebrioymedio/status/765959256084447233?ref_src=twsrc%5Etfw

The raise won’t even cover 20% of the cost of the basic food basket, will bring more hunger and misery for our people.

#AumentoIrreal cada día sufrimos mas, no hay producción, no hay comida, no hay seguridad, no hay empleo…. #MaduroRenunciaYa

— Lizmar Mercado (@LizmarMercado) August 17, 2016

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

RelatedArticles

Three Signs That Elon Musk Has the World at His Fingertips

15 Republicans Who Voted Against Trump Are Already Facing the Consequences

February 1, 2021
Three Signs That Elon Musk Has the World at His Fingertips

Three Signs That Elon Musk Has the World at His Fingertips

February 1, 2021

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.

Tags: inflation in Venezuelascarcity in VenezuelaWages in Venezuela
Previous Post

Video Surfaces of Rio Gas Station Incident Involving US Swimmers

Next Post

Investigators: Trump Campaign Also Target of Hackers

Sabrina Martín

Sabrina Martín

Sabrina Martín is a Venezuelan journalist, commentator, and editor based in Valencia with experience in corporate communication.

Related Posts

Three Signs That Elon Musk Has the World at His Fingertips
News

15 Republicans Who Voted Against Trump Are Already Facing the Consequences

February 1, 2021
Three Signs That Elon Musk Has the World at His Fingertips
Analysis

Three Signs That Elon Musk Has the World at His Fingertips

February 1, 2021
Three Key Moments to Remind Us That the UN Is a Nest of Oppressive Regimes
Analysis

Antiracist Baby: Netflix Series Loaded with Racially Indoctrinating Children

January 29, 2021
Three Key Moments to Remind Us That the UN Is a Nest of Oppressive Regimes
Asia

Chinese Regime Silences Relatives of COVID-19 Fatalities During WHO Visit

January 29, 2021
Three Key Moments to Remind Us That the UN Is a Nest of Oppressive Regimes
Analysis

Three Key Moments to Remind Us That the UN Is a Nest of Oppressive Regimes

January 29, 2021
Dollarization Advances in Venezuela with Debit Cards for Foreign Currency Accounts
Argentina

Argentina Drags Chile in its Bipolar Madness Over Venezuela

January 28, 2021
Next Post
Investigators: Trump Campaign Also Target of Hackers

Investigators: Trump Campaign Also Target of Hackers

Discussion about this post

Subscribe free and never miss another breaking story

  • Venezuela
  • Mexico
  • Colombia
  • Chile
  • Brazil
  • Argentina
  • Podcast

© 2020 PanAm Post - Design & Develop by NEW DREAM GLOBAL CORP. - Privacy policy

No Result
View All Result
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact

© 2020 PanAm Post - Design & Develop by NEW DREAM GLOBAL CORP. - Privacy policy

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. Privacy and Cookie Policy.