Posted on 01/16/2010 8:34:41 PM PST by Cheap_Hessian
CARACAS – Venezuelan President Hugo Chavez announced a 25 percent increase in the minimum wage, as well as the merging of the finance and planning portfolios and the appointment of a new electricity minister.
Chavez made the announcement on Friday during his annual address to the unicameral National Assembly.
The minimum wage will be raised in two phases – first a 10 percent salary increase effective March 1 and then a 15 percent hike that will enter into force on September 1.
The announcement came just days after a sharp currency devaluation that fixed the bolivar at 2.6 to the dollar for imports of essential items and at 4.3 to the greenback for imports of non-essential goods. That latter rate will be used for converting dollars from the oil-rich nation’s crude exports into the local currency.
The opposition says the devaluation is a ploy by Chavez to get more bolivars per dollar from oil exports so he can increase public spending ahead of legislative elections in September.
The socialist president said the increase of “25 percent for this year” will lift the minimum wage from its current level of 967 bolivars ($371.92/$224.88) a month to almost 1,200 bolivars ($461.54/$279.07) per month and is intended as a measure to “further reduce poverty.”
(Excerpt) Read more at laht.com ...
He just cut the value of their currency in half, this minimum wage hike barely makes a dent. They are still very much poorer.
His 25% raise, coincidentally, is exactly the same as the rate of inflation.
We should start a pool as to when there will be major rioting and a complete breakdown in Venezuela. It seems in-evita-ble.
40% inflation in 2010.
He hasn’t destroyed his country enough?
Too bad for us, Obama has us rapidly going down the same path.
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