Venezuelan inflation was caused by economic sanctions? Have you tried stand-up?
Is the Milei "Transformation" Failing Already?
- Thread starter Musicman
- Start date
Please explain why inflation in Venezuela has been dropping after US sanctions were eased in 2022. Or does that not fit into your socialism bad, capitalism good narrative.
It has to do with a few reasons - one is the easing of sanctions which has allowed Chevron to resume operations there and export oil. Venezuela has essentially dollarized too since then. The government has also ended price controls, privatized some state companies, etc
So let's say it's of combination of easing of sanctions, dollarization, and some market friendly reforms
So let's say it's of combination of easing of sanctions, dollarization, and some market friendly reforms
LuckyLuke
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IMO, the USD is a foreign trade instrument and a speculative investment. It should not be a measure of domestic relative affordability. Argentines are also use Crytpo as a store of value, and I don't see anyone using that to determine how much goods cost. I propose instead that we use the Canasta Basica Total and Salario Minimo to show the true change of purchasing power.1. ARS 156.000 (Official@823 = USD 189/ Blue @995 = USD 156)
El salario mínimo pasará a 156.000 pesos en diciembre
El Ministerio de Trabajo de la Nación formalizó la medida a través de la Resolución 15/2023 del Consejo Nacional del Empleo, la Productividad y el Salario Mínimo, Vital y Móvil, que se publicó hoy viernes en el Boletín Oficial.www.argentina.gob.ar
2. ARS 234.315 (Official@905 = USD 258/ Blue @1120 = USD 209)
Capital Social: Se actualizó el monto del Salario Mínimo Vital y Móvil
Este monto es usado para calcular el aporte de cada persona asociada al capital social de una cooperativa.
Increase = 37% official / 33% blue.
Salario Minimo
Dec 2023 - $156,000
Canasta Basica Total
Dec 2023 - $160,452
Percentage of Salario/Canasta = %97
Salario Minimo
May 2024 - $234,315
Canasta Basica Total
May 2024 - $275,518
Percentage of Salario/Canasta = %85
That seems to me like a net 12% drop of purchasing power for the Salario Minimo, contrary to a "37% official rise in USD wages".
antipodean
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I would agree that foreign currency will never show the reality of local income vs costs in any country, while it may serve for comparative purposes such as understanding the value of wages in FX terms. Also would agree that to use the canasta basica total vs minimum wage to show the true change of purchasing power (for those earning this amount) is a more meaningful measure to show the value of it.
To understand the purchasing power of wage earners in Argentina it is important to note that the minimum wage is not usually that relevant in practice to many workers as each sector has their own minimums that can far exceed this amount, as they are starting to again this year. Unlike perhaps in countries like the US or Europe, in Argentina one cannot assume that just because a worker is performing a function such as scrubbing floors they are earning "minimum wage" or close to it. For example, the lowest wage paid to workers in the retail union (representing more than a million workers...) goes to freshly hired janitorial staff who have a basic starting salary (before allowances) of ARS 732.910 in July (166% more than the canasta basica and 212% more than the minimum wage...)
Cuánto gana un empleado de comercio en julio 2024
Los trabajadores del sector reciben este mes un incremento en sus salarios; cómo queda cada categoría y a cuánto asciende el sueldo básico
www.lanacion.com.ar
