Wednesday, November 18, 2009

Constantly increasing salaries will kill the economy...

Bring down inflation
Help people buy more with the same money!
It hurts when you hear politicians for petty gains talk of increasing salaries and anchors and guests gloating about it. Have they any idea how dangerous inflation is?

Concerned countries and governments dread inflation because it only destroys the economy. What is the point of increasing the salaries of people that only adds to the cost of production resulting in making our products uncompetitive in the world market. Besides, any amount of increase is not going to help as the prices will keep going up offsetting any increase - vicious circle. Better thing is to take deflationary measures. Bring prices down.

I wish our authorities had a moratorium on increase in wages and took steps to bring down costs which any day is better than increasing salaries only contributing to inflation. I was shocked to see salaries being used as a tool to get political mileage. Shahbaz Sharif did in Punjab and The Prime Minister did it for the whole country. This is deadly dangerous. What about the bulk of the employees who are not in the government. While increase in salaries may help some only temporarily, deflationary measures will help all for a long long time.

Remember how Margaret Thatcher the iron lady, resisted a coal miners strike for months on end only to ensure that an inflationary trend does not set in. And here we are unabashedly promoting inflation. Sorry. Do something positive. I urge the media also to take it up on a daily basis just as they took up a cause to push Musharraf out of power. Persistent media paid off.
Bringing down prices helps exports and makes the economy healthy...


Syed B. said...

If Shaukath Aziz's policies were bad these are terrible. Inflation sees no end. when will it stop and where? The Dollar that was at 58-60 is now about 84. There seems to be no method in madness. It is a serious issue. Govt. better take it up. The buying power of the rupee must increase not salaries. Reduce fuel cost. Tighten money supply. Curb imports of consumer goods.

Leslie said...

Economists like Manmohan Sing an LSE Professor must make major economic policy decisions not petty politicians and still pettier Mr. 10%. What do they care for Pakistan and its people? They have to fill their pockets legally or illegally.

Rana said...

People are dying of hunger due to the high cost of living and cost of production has made our goods uncompetitive in the world market. We just cant sell abroad. Must sell within the country. And that is also difficult when imports from China and other places is so cheap despite the duty. Government is earning, factories are closing and unemployment is rising all because of inflation. It is high time we took measures to bring down inflation.

Sunny said...

And lawlessness and corruption is at its peak. Where are we heading?

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