Venezuela's Consumption Boom and Income Rises for the Poor

[The Oil Wars Blog (OWB) comments on a recent Datanalisis poll showing that between July 2006 and July 2007 retail and wholesale sales in Venezuela have risen 35%. The OWB also comments on recent data showing that the real income of social classes D and E (the poor and working poor) has risen by 60% and 100% respectively since 1998 (the year before Chavez assumed the presidency).]

Little gringos 

By Oil Wars Blog

Tuesday, October 16, 2007

Venezuela's consumption boom is showing no signs of petering out. If anything it is accelerating.

From today's El Universal we learn that between July 2006 and July 2007 retail and wholesale sales in Venezuela are up another measly 35%.

Sales of home appliances are up 111.6%, clothing is up 92%, food and drinks are up 22% (thank god they aren't what is up 111% - that could be ugly), motor vehicles are up 62% and tools and paint are up 30%.

These numbers come from Datanalisis which also tells us that 60% of the population think the country is doing well and 82% think their own economic situation is going to get better.

Of course, we also learn that in the same time period credit card debt has gone up 115% (I wonder if in Venezuela they issue credit cards with the slogan Patria, Socialismo, o Muerte on them?). Maybe instead of being referred to as "little Venitians" we should start calling them "little gringos".

Now getting somewhat more serious in a different article in the same paper we learn that most Venezuelans really are a LOT better off.

If you recall I have always fancied the graphs from Datos and AC Nielsen which show the real income of the poorest strata has gone way up - 130% since 2003 in fact.

However, I never had data which compared the income of social classes D and E (the poor and working poor) now to 1998 right before Chavez came to office. Well, now courtesy Datanalisis we learn that the REAL income of social class D has gone up 60% since 1998 and the REAL income of social class E has gone up 100% - that is right, it has outright doubled!!!

(click here to view entire article)