As for many Venezuelans, the economic situation is one of the biggest concerns for María, an elderly woman whose pension is not enough “not even for bread.”
In his opinion, given the de facto dollarization of goods and services, the government should pay pensions and salaries in dollars.
“But not at the current price, that they pay us more because that is not enough for us,” she says when asked by the Voice of America while walking down one of the main avenues in eastern Caracas.
A year ago, after the last increase by the government, the minimum wage in Venezuela received by some 700,000 public workers and just over 4,500,000 pensioners was the equivalent in bolivars of about 30 dollars a month, but currently it is 5.38 dollars calculated at official rate.
Meanwhile, prices continue to rise. Inflation in February reached 20.2%, and annualized inflation at 537.7%, according to estimates by the Venezuelan Finance Observatory (OVF), an independent entity that emerged to contribute to the preparation of economic statistics and to deal with the lack of data in the country.
This, its members say, “configures an inflationary situation where the fiscal and monetary authorities seem overwhelmed and without instruments to stop it” and several experts warn that the country is on the verge of entering a new process of hyperinflation.
In December, the basic food basket for a family group of five people was 377 dollars, according to estimates by the Center for Documentation and Analysis for Workers (CENDA). At that time, the minimum family income of two people working was enough “to buy food for two days a month.”
Outside of the so-called “bubble” that members of the wealthiest sectors of Venezuela constantly expose on social networks, the situation is palpable in the streets and especially in supermarkets.
Citizens do not stop expressing astonishment at the notable increase in prices and constantly vent when they come to pay at the cashier. “How expensive everything is!” is often heard.
According to PsicoData, a recent study by the School of Psychology of the Andrés Bello Catholic University (UCAB), economic problems are the main cause of stress for 64.5% of the population.
The most recent opinion poll by the pollster Datincorp reveals that 57% of those consulted point to the economy (inflation, low wages and unemployment) as the biggest problem that requires urgent solution.
Slavery
José Guerra, economist and former manager of Economic Research at the Central Bank of Venezuela (BCV), denounced this week that there is a “kind of slavery” in the country due to the low wages paid by the government in a context in which, gradually, subsidies for gasoline, electricity and other services have been gradually eliminated.
Although Guerra clarifies that he is not a defender of subsidies, he insists that the salary “has fallen dramatically” and challenges the government to present figures, since, in his opinion, the State is capable of paying “a reasonable salary of between 100 and 150 dollars”.
“At a time when oil exports from the Chevron company are increasing, it is already close to 100,000 barrels per day. Cargoes from other oil companies have come out,” he says.
In the economist’s opinion, the government is saving the money for the electoral campaign of the presidential elections scheduled for 2024.
“They have money, what happens is that Maduro does not want to give the salary increase. Maduro has money and he has hidden it, preparing it for the campaign, that is the truth, ”he added in a video released on his social networks.
Víctor Álvarez, economist and former Minister of Basic Industries and Mining, maintains that one of the sources to increase the minimum wage of the public payroll is the substitution of the Tax on Large Financial Transactions (IGTF), which imposes a rate of 3% on commercial or financial operations that are carried out in foreign currency in Venezuela, for a tax on Bank Debit “destining to a fund to pay only minimum wages to the education and health payroll.”
The government insists on attributing the crisis that the country is going through to the sanctions of the international community and demands that they be lifted.
In fact, Jorge Rodríguez, president of the National Assembly with an official majority and head of the government delegation in the dialogue with the United Platform of the opposition in Mexico, said on Thursday that they will not sign “any agreement” with that sector of the opposition. until the country is “100% sanctions free.”
In mid-January, Vice President Delcy Rodríguez assured that announcements regarding the recovery of purchasing power would be made in a matter of hours, however, no salary increase has yet been registered in the country.
” alt=””/>
With information from VOA
