Economists: Raising minimum wage would be economic suicide 05/05/2022
-
Loading... - Tereza Dvorak
- 05 May 2022
- 324 Views
- 0 Like
- 0 Comment
The head of the Czech Confederation of Trade Unions, Josef Středula, has threatened a general strike or even a blockade of the capital if his demands to increase the minimum wage and the frozen salaries of civil servants are not met. But economists warn that raising wages at this time could trigger another vicious spiral of inflation.
Czech trade unions have re-elected potential presidential hopeful Josef StÅ™edula to be their chairman for another four years. Immediately after his re-election, he said he wouldn’t rule out a general strike or a blockade of Prague in the event that the minimum wage for workers is not increased, Czech news site Echo24 reported. He argued that employees should not be made to bear the brunt of the economic impact from inflation and rising prices.
However, economists such as Eva Zamrazilová, Chairwoman of the National Budget Council, thinks it would be economic suicide to pursue such a policy, warning that raising the minimum wage could cause another inflation spiral.
"Raising the minimum wage would currently be an extremely irresponsible step cementing inflation. It would not only be reflected in further wage growth without any link to labour productivity, but it could also lead to a significant increase in unemployment." Read More...
