Living off 1 USD Per Month in Venezuela

By Caridad

Salarios mínimos en Latinoamérica

HAVANA TIMES – Has anybody had any luck trying to explain the absurd?

How to explain that the minimum wage in a country is one dollar a month and that it’s been like this for several years?

How do you explain that people in this country are getting by on just a couple of dollars per month?

Does this situation form part of the magical realism landscape or is it just pure absurdity? Is it a combination of the two?

Anybody who isn’t Venezuelan and lives outside this country will be asking themselves – in disbelief a lot of the time – whether this information is in actual fact true.

Yep, I can confirm that the minimum wage in this country, today, is actually less than 1 USD. This figure is rounded off by the 0.5 USD payment of a food basket that is handed out once a month to those who work.

Here’s how its done

Now, for those of you don’t live here, there are many things I need to explain:

1- The government is interested in upholding starvation politics, which is something those of us who come from Cuba, or have lived under similar systems of government, know all too well.

2- Despite the demise of the State oil conglomerate, PDVSA, Venezuela has extraordinary mining potential, and this is what is filling part of the coffers of those who rule the country, as well as their allies.

3- If basic food items are three times above their real value because of mega inflation, selling them has become a lucrative business, especially when you are linked to the government in some way (or hold a government position).

4- A product made in Venezuela is a lot more expensive than an imported one because making it implies higher costs than crossing the border to Brazil or Colombia. This is why a lot less is being produced here, and anyone is able to sell imported food items for whatever price they deem fit.

These lines for petrol can be for days or a week.

5- Petrol is another market that has become a source of revenue. In greater and greater shortage, you must wait in line for several days or even weeks to get gasoline or pay those who are in control of it in dollars. Many people dedicate themselves to sitting in these lines and then selling petrol to buy food. The military and those close to them have a whole mafia around this business, and we already know how mafias work.

6- Basic services, which are no longer considered “basic” by the government – such as gas, telecommunications, electricity, etc. – are also a source of illegal income for workers who are unable to live off the minimum wage and “sell” their services or products “on the black market” in dollars.

7- I won’t mention drugs, I prefer not to upset anyone and, as a result, run into problems I’m not ready for. However, if we read the news or visit states with a coast or border with Colombia, we’ll see another source of revenue that is gaining more and more ground every day.

8- Many people don’t earn the minimum wage: I know that people who work in certain companies or ministries earn in dollars, and their wages can range between 40-70 USD per month, which isn’t legal. Of course, it continues to be a “wage” way below any other Latin American country.

9- Over 5 million Venezuelans have emigrated from the country over the past 4 to 5 years. At least a good lot of them send remittances back to their families.

10- The government hands out a bonus every month to those who own a “Homeland card”, which triples the minimum wage normally, that is to say it’s a bonus of 2-3 USD. This is also ridiculous, but it forms part of their subjugation politics.

11- Once a month, or every two months, they sell a basket for a “solidary” price, which includes a couple of kilos of rice, pasta and flour, and sometimes sugar and grains; it’s all poor quality but it at least helps those who receive it to suffer the battle of survival a little less.

Does that make sense?

I don’t know if you are able to begin to get your head around how Venezuelans live off 1 USD per month after what I’ve just said…

Let me give you an example: teachers aren’t giving classes in person right now, so they have free time to give private classes to students they know; a teacher can charge 2-5 USD per week for every student. This figure is an estimate because every teacher is free to charge whatever they choose.

The question you’ll immediately want to ask is: where do these parents get the money to pay for extra classes?

Let’s suppose that both parents earn just over the minimum wage, like the teacher. But perhaps the father knows how to mend shoes, which is a service in high-demand right now as you can imagine. And the mother might dedicate herself to online work outside of her working hours. Or maybe more simply yet, one of the parents is living outside Venezuela and is sending money back every month. Or maybe one of them works in a place that has access to medicine, for example, and sells the ones that are highly sought after for a price that helps them to get by with some kind of decency.

There is also the chance that they dedicate themselves to sitting in petrol lines (two, three days, a week even until the tanker comes) and charges those who don’t have the time or desire to wait so many days in line. Or maybe they have a member of the military in the family who helps them have access to petrol, selling a liter for 2-5 USD they are able to pay for a week’s worth of classes. Let me repeat, nobody is regulating the price of anything being sold here. The only thing that matters is how much the seller or customer needs it.

Like in Cuba, nobody really lives off their wages: it’s completely impossible. Do they steal to get by? Yes, a lot. But here, there is also the advantage of private property. There are still private companies and businesses whose owners and employees don’t receive a minimum wage, or receive extra payment in other ways.

Therefore, the most defenseless eat from garbage bins in Caracas (which is something I have seen since 2016, and I can’t say it’s common in other Venezuelan cities). Or they get sick and die, like the elderly or chronically sick; or they exchange their work for a meal.

In fact, I know professionals who have been forced right now to offer their knowledge in exchange for a meal, as one meal per day represents a lot more than the monthly minimum wage here.

Read more from Caridad’s diary here on Havana Times.

Caridad

Caridad: If I had the chance to choose what my next life would be like, I’d like to be water. If I had the chance to eliminate a worst aspect of the world I would erase fear. Of all the human feelings I most like I prefer friendship. I was born in the year of the first Congress of the Cuban Communist Party, the day that Gay Pride is celebrated around the world. I no longer live on the east side of Havana; I’m trying to make a go of it in Caracas, and I continue to defend my right to do what I want and not what society expects of me.


6 thoughts on “Living off 1 USD Per Month in Venezuela

  • Pingback: Bachelet on Deteriorating Human Rights in Venezuela - +58 Reports: Situación política de Venezuela y su análisis

  • February 14, 2021 at 6:34 pm
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    Venezuela’s economy collapsed before sanctions were even placed on the regime.
    Marxist policies and mass thievery doomed Venezuela.

    2014 Venezuela was placed at the top of the misery index for the second year in a row. The Economist said Venezuela was “probably the world’s worst-managed economy”.
    2015, the inflation rate was 180% in 2016 800% rising now to a million percent.
    GDP collapsing.
    Failed country run by a despot.

    https://en.wikipedia.org/wiki/Economy_of_Venezuela

    https://www.brookings.edu/research/revisiting-the-evidence-impact-of-the-2017-sanctions-on-venezuela/#page-content

  • February 8, 2021 at 11:02 am
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    Caridad – I don’t doubt in the least that corruption and incompetence of the Venezuelan Government account for a portion of the blame, but how much ? You don’t seem to realize, or maybe just do not want to admit, the extent of the damage of the spider web of US sanctions. They cannot even freely sell their oil. That is 90% of their foreign currency earnings right there, and that only scratches the surface. The fact that you do not even acknowledge their existence indicates what your opinion is worth. Another Capitalism good, Socialism bad, ingenua.

  • February 6, 2021 at 10:47 am
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    Mass corruption, incompetence, nationalizations and communism destroyed Venezuela’s economy. It’s common knowledge.

  • February 5, 2021 at 12:44 pm
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    Dan, Do you really want to believe that the economic disaster in Venezuela is due to the economic sanctions that has nothing to do with the blockade of Cuba?
    I say to you the same thing to all those who need to believe that there is Good (Socialism) and Evil (capitalism): come to Venezuela without your dollars and we will see how many days you survive. I give you the advantage of not having to pay rent, my house is at your service in case you dare to open your eyes, mijito.

  • February 4, 2021 at 12:48 pm
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    What you need to explain, Caridad, mija, is how you can talk about hardship in Venezuela without a single word about the unprecedented US sanctions to entirely suffocate the economy ?

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