Quote:
Originally Posted by A.Hidalgo
Just wanted to throw this out there...
According to the latest figures, the inflation rate for DR in 2007 was approximately 6.1% and the estimate for 2008 is approx 6.2%(maybe a bit higher because of oil prices). The last minimum wage hike was last year. So far inflation is nowhere near damaging the economy in any real sense because of wage hikes.
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It's been clear that the DR has been and still is under significant inflationary pressure. I'm sure we can all recall the 40-60% inflation just a few years ago.
And inflation clearly hurts wage earners, especially those at the bottom rung of the prosperity ladder.
But throw in wage inflation on top of what is occuring now, and it's a recipe for the perfect economic storm: a stagnant economy shedding wealth and jobs, with inflation. Stagflation (remember the Jimmah Cahtah years). Then, my friend, it gets REAL ugly, and with the already negative resource/population issue ("rats in a cage"
), there is no way out.