Socialist economics at work

[Vern Humphrey]

Venezuelan workers who earned a pittance are now earning a slightly larger pittance, thanks to a big increase in the minimum wage. What they may not have are jobs.

Starting this week, 7 million employees are guaranteed 1,800 bolivars a month -- worth about $20 at the black-market rate. President Nicolas Maduro intended the mandate as political boost, but it’s having the opposite effect as companies, already hit by Venezuela’s epic economic contraction, tell workers they can’t afford to keep them.

http://www.msn.com/en-us/money/marke...HTD?li=BBnbfcN

[dryheat]

Can you say economic refugee?

[Sandpebble]

sounds just like what happened to us here 11 years ago .....

[Vern Humphrey]

Another candidate for the Byng award.

[S.A. Boggs]

sounds just like what happened to us here 11 years ago .....

What were you complaining about, not enough "foreigners" for you?
Sam

[dryheat]

Another candidate for the Byng award.

Explain it, or stop.

[Vern Humphrey]

During the Seven Years War (which we call the French and Indian War) the British had a garrison on the island of Minorca in the Mediterranean. A French fleet landed a force on the island and the British were besieged. The British sent out a relief fleet under Sir John Byng.

In those days the British Navy had a set of regulations called “Fighting Instructions.” Admiral Byng tried to bring the French to battle in accordance with those regulations and they wouldn’t cooperate. Finally, out of food and water and his ships needing repairs, he sailed away. The British garrison on Minorca surrendered.

At his court martial, Byng was asked why he hadn’t tried various methods to smoke the French out, and to each suggestion he pointed out that wasn’t covered in “Fighting Instructions.” He was found guilty and shot by a firing squad.

The Byng Award was created in his honor. It is given for the tenacious defense of absolute bullxxxx in the face of overwhelming common sense.

[Vern Humphrey]

Let me quote the original post here:

Venezuelan workers who earned a pittance are now earning a slightly larger pittance, thanks to a big increase in the minimum wage. What they may not have are jobs.

Starting this week, 7 million employees are guaranteed 1,800 bolivars a month -- worth about $20 at the black-market rate. President Nicolas Maduro intended the mandate as political boost, but it’s having the opposite effect as companies, already hit by Venezuela’s epic economic contraction, tell workers they can’t afford to keep them.

Now let me quote the candidate for the Byng Award:

sounds just like what happened to us here 11 years ago .....

Let's see the hands of all those who believe the United States was in this situation 11 years ago -- with the minimum wage being worth $20 a month, and people losing jobs because employers couldn't afford to pay it.

[Mark in Ottawa]

Last Wednesday Maduro got on a plane and headed to China to see if he could get some financial help. The first article I read suggested the he might just not bother to come back to Caracas but other articles are suggesting that the Chinese will strike a hard bargain and gain a major foothold in South America in exchange for a large loan. Remember that Venezuela has huge oil reserves.

[dryheat]

Country For Sale. Cheap. Needs a little fixing up.