The ruling politicians are unfortunately going in the opposite direction. While a person working for a minimum wage in 2015 paid 29% in taxes and levies, with the planned minimum wage, they will pay more than 40% next year.
A minimum wage problem is a thought experiment that is not easy to comprehend. The fact is that people are different. Some people create enormous wealth and others do not produce much. If their added value or created wealth in a month does not reach the minimum wage, the government forbids them to work.
There is evidence showing that increases in mandatory minimum wage might force some firms to increase prices, lay off workers, cut fringe benefits for employees and engage in other revenue-boosting or cost-cutting measures.
On December 7, 2017, the Ukrainian Parliament had the day of Budget-2018. During one day, the Verkhovna Rada amended the Budget Code and Tax Code, as well as adopted the State Budget Law for 2018. The decisions were taken in a very non-transparent way with changes approved from the voice.
Since the Czech Republic is an export-based economy with one dominant trading partner (Germany), one can be very skeptical of the ability of the Czech government to actually reduce unemployment. On the other hand, there is much the government can do to make the situation worse.
“We must prevent exploitation of workers,” they say. Well, this is a complete nonsense. Capitalist exploitation is nothing but a fable that leftists, populists or inadequately educated individuals uses for haunting employees – just like parents use tales about bugaboos under bed to scare unruly children.
More than 20 representatives of NGOs, Roma employment organizations, journalists, politicians, embassies’ representatives, among others, attended a seminar organized by INESS on December 15, 2015 devoted to describing the existing barriers on the labor market, which are the result of existing legislation and discuss possibilities of their removal, or change.
This is the sad history of price regulation of wages, venerated by the politicians, voters but also various organizations trying to help minorities. Although its current defenders do not have the same reasons as its supporters from the previous century, their agendas, unfortunately, still bring the same consequences.
We are delighted to present you the second #4discussion, devoted to the topic of minimum wage and the welfare state. See what do Elina Lepomäki, Professor Tim Evans, Barbara Nowacka, and Richard Durana have to say on the topic and feel free to comment on that!