Petro's Economy
Despite warnings from hundreds of economists and think tanks to the Ministry of Finance about the inflationary consequences of the disproportionate increase in the minimum wage, the government ignored the comments and decreed a 23.7% rise.
TL;DR
- The government is accused of blaming the Bank of the Republic for inflation, while the real cause is alleged to be electoral populism and a disproportionate minimum wage hike.
- Warnings from economists about the inflationary impact of the 23.7% minimum wage increase were ignored by the government.
- The article claims the government falsely asserts that high interest rates benefit bankers and serve private interests, whereas historically they lead to lower bank profits.
- The government's narrative is described as contrary to scientific data and economic principles, with officials accused of intellectual dishonesty.
- It is suggested that a debt with the IMF was replaced with more expensive bonds, contradicting the government's claims.