Bolivar Fuerte

On the other hand the production of goods and services has shrunk greatly as a result of bad policies economic and fiscal of this Government that have meant the closure of countless companies and the need to import a wide variety of material raw material and finished products that, inevitably, are still as rare as the resources to buy them and which must also be sold at international prices jumping, in many cases, low effective tax price control already makes most of three years that the only thing that has really served has been to further strangle the productive and commercial of the country unit. You plank who hurts the market is relentless, a contraction of this nature and this magnitude in bid implies that consumers are less offered goods, and the few that are, at a higher price then, although more money has been on the street everything is more expensive is assumed that by being VAT a do imposed that it accumulates along the supply chain and marketing, intermediate tax amounts will be moved to the successive links in this chain as a component of the cost and therefore, logically, if the reduction is verified along that chain this should also be reflected in the final price charged to the consumer but the Central Bank of Venezuela tells US that the? index of prices to consumers rose at the close second semester 1.8% so do not ate inflation reduction of 2 points in VAT? now everything is cheaper? I insist: No, it is not, the truth is that everything is still costing the same, simply that the Government is going to reach into our pockets with a little more finesse. More info: Keith Yamashita. Apart from playing the brazen lie, this Government is playing with more delicate else: logically, medium-term people begins or should begin to perceive a difference, might have the feeling that the money pays more, but this difference is, neither more nor less than 2% of our consumption that the Government stopped charging us through their VAT withholding agents: merchants and service providers; but in no way means that prices have actually fallen and inflation has been checked. And that difference will go?, it is not unreasonable to think or predict that that different people will employ it in further expanding their consumption levels; It is known that investment in movable property (cars, appliances, Brown line, etc.), is a way to protect themselves from inflation because, under current conditions, the rate of return of financial instruments of saving and investment within the reach of most of the people left behind face inflation indices. Many might even have the perception that this extra consumption capacity provides them a sufficiently solid base for accessing even higher levels of consumption or investment by way of the credit an inflation factor so out of control as public spending, a production in recoil apparatus, a high level of unemployment, a discouraging deep and constant savings, an expansion of consumption in goods, services and investment instruments, (for which the Government will charge its 9%) we miss numbers? with what you are playing, (just like with the theme of the Bolivar Fuerte) is with the psychological perception that people have of our country’s economic reality and that, in addition to evil, is dangerous.

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