The Chavez administration announced an increase of 20% in the minimum salary with a second increase coming in August. Yes, it is political. Yes, it is opportunistic. Yes, it will hurt companies a lot. Yes, it was done without any negotiation. But I can not criticize it. During the forty years prior to Chavez, Government’s would do the same thing. In fact, it was even worse because they would announce general salary increases, not just increases in the minimum salary.
This increase is clearly another announcement to make the Government look good in the face of the ratification process and a possible recall referendum against Chavez. During the last five years, the Chavez administration had never increased the minimum salary by an amount comparable to inflation like it just did. Unfortunately, this impacts the Government strongly which given the fiscal problems implies further devaluations down the line. This is part of the usual perverse cycle of large fiscal deficits, devaluations, salary increases and the cycle feeds on itself. u
The Devil's Excrement 
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