economy
Petro contrae la economía y pauperiza a los más pobres
Si algún fenómeno económico golpea rudamente a la población, en especial a la más pobre, es la inflación, la que, definida en términos simples, es la pérdida del poder adquisitivo de la moneda como consecuencia del aumento del precio de bienes y servicios.
TL;DR
- Inflation is defined as the loss of purchasing power due to rising prices of goods and services.
- The current inflationary pressure in Colombia is attributed to the government's economic policies, increased illicit crops, corruption, fiscal deficit, and rising labor costs from disproportionate minimum wage increases.
- Increasing the minimum wage above inflation without economic expansion reduces formal employment, stimulates inflation, increases the cost of money, and contracts the economy.
- Monetary inflation is combated by contracting the money supply, as attempted by the Banco de la República by increasing the Intervention Rate.
- Milton Friedman's Monetary Intervention Theory suggests the state can control inflation by regulating the money supply at a constant rate, which is linked to the Intervention Rate.
- Other types of inflation, such as Reflective (due to commodity scarcity) and Induced (due to market collusion), are not addressed by Friedman's theory.
- Market uncertainty and a populist government's policies are contributing to inflation, deterring investment and economic growth.
- The government's management is seen as inept, increasing inequality and poverty.
- While raising the Intervention Rate is a valid measure against inflation, it also leads to higher borrowing costs and economic deceleration.
- The article predicts inflation could reach 7% by the end of 2026 if companies pass increased costs to consumers, potentially leading to job cuts and further economic contraction.