Dear MEL
Topic Readers,
Venezuela
minimum wage to rise by 50% 'to combat inflation'
Good
news or bad news? A sudden increase of your wage by 50%! If the value of the
increase matches or exceeds the hike of commodity prices and living expenses,
Great news. But if the rate of inflation substantially surpasses your wage increase,
not so much.
This is the
dilemma what the people in Bolivia, an oil-rich South African country, are
facing now. Because of the low oil prices, the nation’s export plunged and economy
has been suffering from hyperinflation. Exchange rates to the US dollar vary
widely, the official rate is as low as the one-fifth on the street market rate.
International Monetary Fund estimates the country’s inflation could reach over
1,000%!
Butch and
Sundance wouldn’t have gone to the country if they had known that the country’s
economy was in chaos.
Read the
article and think what you would do if your saving shrinks and salary decreases
10% every month.
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