According to El Nacional, over the last 11 years, prices have gone up 733%, while remunerations have risen just 571%. Ergo, since 733-571 is 162…purchasing power has fallen 162% since Chávez came to power!
Somebody pleaaase save these people from themselves!
Just so it’s clear. Lets say back in 1998, the price of 100 potatoes was Bs.100.
Today, in 2010, prices have gone up 733%. Those same 100 potatoes now cost Bs.733. (So a single potato costs Bs.7.33). In the meantime, your salary has only gone up 571%, to Bs.571. How many potatoes can you buy for Bs.571?
Ummm…571 / 7.33 = 77.89.
So you can buy about 78 potatoes! Not negative 62 potatoes!
Your purchasing power dropped 22%, not 162%…it takes only a second’s reflection to realize purchasing power can’t drop more than 100%!!
Caracas Chronicles is 100% reader-supported.
Support independent Venezuelan journalism by making a donation.Donate