The harsh economic reality of Nicaraguans: caught between the rise in minimum wage and the impossibility of covering the basic basket

The economic reality facing Nicaraguans is disheartening and concerning. Despite the increase in the minimum wage decreed by the government of Daniel Ortega, which in January 2024 rose to 8,746.46 córdobas, the majority of the population is unable to even cover the cost of the basic basket of goods. Lydia, a worker in a free trade zone in Managua, is just one example of the harsh situation that thousands of families in the country are experiencing. A report by the organization Hagamos Democracia reveals that an overwhelming 86.8% of Nicaraguans cannot afford the basic basket of goods, reflecting the serious economic crisis gripping the nation. Despite the government's efforts to portray an image of prosperity, the reality on the streets is diametrically opposed for the vast majority of the population. The disparity between the incomes of Nicaraguan families and the excessive rise in food prices is evident. The cost of the basic basket of goods has increased exorbitantly in recent years, reaching figures that are unattainable for most workers. Even with two minimum wages, it would be impossible for an average family to acquire the basic necessities to survive. Job insecurity is also a determining factor in this crisis. The increase in informal work and the lack of formal employment directly impact people's ability to cover their monthly expenses. The absence of contributions to the social security system and the growing need to migrate highlight the lack of job opportunities and the helplessness in which many Nicaraguans find themselves. Family remittances have become a fundamental pillar for the economy of many families in Nicaragua. However, far from being a resource for extra expenses, remittances have become essential for the daily survival of the population. This situation reflects the deep dependency that many Nicaraguan families have on external assistance. The possibility of migrating is an idea that crosses the minds of the majority of Nicaraguans, according to the Hagamos Democracia report. The desire to seek better opportunities abroad is a reflection of the bleak outlook they face in their own country. Since the start of the socio-political crisis in 2018, over a million Nicaraguans have emigrated in search of a more dignified and secure life. In conclusion, Nicaragua's economic reality is alarming. The gap between the population's incomes and the cost of living is widening, leaving many families in a situation of extreme vulnerability. There is an urgent need for the implementation of public policies that comprehensively address this crisis and ensure a more promising future for all Nicaraguan citizens. The stability and financial security of families cannot continue to be an unattainable dream in a country with so much potential and natural wealth.