Economist: A 35% wage increase with 100% inflation means imposing poverty on workers. Controlling inflation saves the household's livelihood.
Zahra Karimi, an economist, in an interview with Aktezana News:
Expecting a 35% wage increase in next year's budget, in the face of very high inflation, means directly imposing poverty on the workers. The middle class and workers now feel constantly in distress, and the deep gap between wage growth and expenses has caused their livelihoods to face a serious crisis.
The distribution of the burden caused by the lack of resources should be completely fair and transparent, not that the main pressure falls solely on the shoulders of the less vocal groups. If the budget were transparent, it would be clear if the specific government institutions are also responsible for this financial contraction or if only the wage earners are the victims of the inequality in the distribution of resources.
Disappointment to compensate the expenses and increase the cost of daily travel destroys the motivation of the government employees and leads to more absenteeism and weakening the efficiency of the departments. The basic solution to solving this bottleneck is to end the conditions of war and open the way of diplomacy. Otherwise, printing money will not benefit the welfare.
The implementation of the gradual wage increase policy, although proposed with the aim of supporting more of the low incomes, is not so simple due to the difference in the costs of housing and urban life. The average income is not able to withstand the current shocks and the implementation of such programs requires very high social capital.
The significant increase in wages to the extent of one hundred percent, without curbing the inflation of food products and housing, will only lead to a budget deficit, raising loans and accelerating inflation. A sustainable improvement of the purchasing power of society depends only on controlling inflation and restoring peace to the economy, otherwise the nominal increase of the data will not solve any problem.
Read the full text of this conversation on Akhtaznews.