Demands for minimum wage suggest that fundamental economic problems exists and the current policies aren't doing enough to close the wealth divide.
Minimum wage law is like SMRT bus bridging service every time the MRT trains break down. In itself, it is not sustainable solution since like the bus bridging service during MRT breakdowns, it costs SMRT lost profits in addition to a reputation stain. To the economy, it comes at a cost of factory owners possibly seeking greener pastures usually solved with strong inflationary pressure as the government then has to print more money to pay civil servants or else depreciate currency so that companies can now earn more from selling goods abroad to mitigate against the increase in wages locally payable (which is inflationary because imports now costs more).
At the end of the day, minimum wage is only a temporary measure and indeed really NO SILVER BULLET, however, the call for it signifies significant structural socio-economic problems, the consequent inequality and thus unease. The longer this problem is left unattended, the greater would be the unease and thus subsequent repercussions. Ultimately, whether it is a government capitulation or a full scale revolution, only time will tell...
Minimum wage law is like SMRT bus bridging service every time the MRT trains break down. In itself, it is not sustainable solution since like the bus bridging service during MRT breakdowns, it costs SMRT lost profits in addition to a reputation stain. To the economy, it comes at a cost of factory owners possibly seeking greener pastures usually solved with strong inflationary pressure as the government then has to print more money to pay civil servants or else depreciate currency so that companies can now earn more from selling goods abroad to mitigate against the increase in wages locally payable (which is inflationary because imports now costs more).
At the end of the day, minimum wage is only a temporary measure and indeed really NO SILVER BULLET, however, the call for it signifies significant structural socio-economic problems, the consequent inequality and thus unease. The longer this problem is left unattended, the greater would be the unease and thus subsequent repercussions. Ultimately, whether it is a government capitulation or a full scale revolution, only time will tell...
