Venezuelans' purchasing power crumbles 4.9 percent in the last year

[naaman fletcher]

ECONOMY
Inflation continues strongly affecting workers' wages. Data from the Central Bank of Venezuela (BCV) show that, in real terms, the purchasing power of workers plunged by 4.9 percent between the third quarter of 2009 and the third quarter of 2010.

The figure averages the salaries of government and private workers. However, the fall of workers' salaries in private companies was just 0.4 percent while the lower purchasing power of public servants amounted to 14.05 percent over the period.

Public servants with college degrees were the most affected by the falling purchasing power. The purchasing power of the occupational group of workers with university degrees, scientists, and intellectuals plummeted 18.5 percent in the last year, whereasthe collapse of the purchasing power of technicians and medium-level workers was 12.3 percent between the first quarter of 2009 and the same period this year, according to the BCV.

The purchasing power of government executives in senior positions was also seriously undermined, since it fell 17.7 percent in the last 12 months

http://english.eluniversal.com/2010/11/11/en_eco_esp_venezuelans-purchas_11A4717091.shtml

[Billy Burnett]

1. Damned if you do, damned if you don't.

If the government of Venezuela had raised salaries of gov workers the dicktater-fer-life commie/nazi Chavez would catch hell for that.

Chavez can't win. No matter what. (Except elections, of course. :) )

[ChangoLoa]

2. This concerns real salaries and income, not nominal.

Nominal salaries of govt workers have been raised and quite a lot... inflation ended up eating them though. All in all, real salaries have decreased despite the nominal increase.

When you start winning elections with a minority, you'd better start asking yourself some conceptual questions about democracy and its fundamental social connections.

Is the parliament a bourgeois institution? Should it be replaced with legislative communes? Should the vote be secret? :think:

[CJvR]

3. You cant beat inflation.

In the end you have to fix the inflation driving factors in the economy.