Venezuela, Minimum wage and Misery.


Source of image

A colleague wrote me that this Monday the deposit of our biweekly salary payment would arrive in our accounts ... when he mentioned the amount, he gave me things to think about.

In Venezuela, the real value of wages has decreased much, much more this year, in which the devaluation of the national currency, the Bolívar (Bs), against the Dollar ($) has reached unbearable points. We started the year with an exchange rate of approximately Bs 32,000 for each $ 1, but as of this date in September we are approximately at Bs 440,000 for $ 1 ... As can be seen, the value of the national currency was devalued by more than 100 times the start of 2020.

I looked for a map with data to compare and it was easy to find one, in the image the darker colors represent countries with the highest minimum income when exchanging them for dollars, I can see that Venezuela is among those with the lightest colors.

Sergi Lanau
The minimum salary increase Venezuela just announced will take the real salary back to its Jan 2019 level for a very brief period. In the bigger picture, real income will continue to be nothing relative to 2016. The erosion of purchasing power in the last few years was massive.
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It also happens that although in previous years Venezuela has shown to have one of the worst minimum wages, things have become much more miserable for about 4 years. Taking the real value of the salary earned by a public or government sector worker to look like in the graph above.

Today the minimum monthly wage of a worker in Venezuela, at the exchange rate in dollars, is less than $ 1




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