OPINION; The minimum wage dilemma

 
830Views 11Comments Posted 14/12/2019

The discussion of the minimum wage is a ritual of disagreement that is repeated every two years. Those who sit at the table should be accompanied by the most diverse representations of micro and small businesses, unemployed, self-employed and even a spokesperson for the growing sector of young people who neither work nor study.

The minimum wage is less and less relevant in a labor market with an informal labor sector as large as the Panamanian. The fundamentals of capitalist economies are very simple: there has to be a demand that justifies an offer. The economic growth figures for the year ending are only 3.5% of GDP. Hundreds of companies have fired  employees and the change of government has resulted in the dismissal of at least 12 thousand public servants.

Those were salaries that paid bills and produced other jobs. To these realities is added the increasing automation of work, which makes the real dilemma of the minimum wage is not to maintain or increase it, but to preserve existing jobs and generate new jobs. LA PRENSA, Dec. 14

 



Comments 11

user
Cicero3

Claire, the govenment jobs won't remain vacant. They are patronage jobs that are the spoils of victory in Panamá.

Last month
user
ThinkerSoul

Reply to Captain, I got your point, but you may come from England or maybe US, countries which economies are high income economies. In the case of England, British people have, for years, enjoyed a generous welfare system, something that cannot be found anywhere in Panama. Panama is a Tax Haven coming from a collapsed Spanish Empire and secondly colonized by US-an Empire made of imported citizens, moreover, Panama as a tax haven is one that is well established, remember flags of convenience, the land is privately owned, Latifundios, and is used by international mafias to launder ill gotten money making services quite expensive, just look at our investors and you will see narco money everywhere. In Panama, we do not have any real money but a dollarized economy, meaning that the money in Panama does not have a great deal of purchasing power neither any induced value (read Auriti) since there are not industries in Panama, and the little raw materials we have are being stolen by big economies, as you can see with China taking 60% of the copper, when the copper in 2015 have been losing in prices, and bargain hunters and manufacturers from China may be using the low price of copper to replenish their stocks of this metal, so that Panama is losing momentum as less raw material would be available to try to do anything and losing revenues from the low price of copper. Panama is systematically being exploited by these investors coming from abroad, but for such a small Tax Haven with this history of colonization, the future looks quite bleak.

Last month
user
ThinkerSoul

Reply to Captain, I got your point, but you may come from England or maybe US, countries which economies are high income economies. In the case of England, British people have, for years, enjoyed a generous welfare system, something that cannot be found anywhere in Panama. Panama is a Tax Haven coming from a collapsed Spanish Empire and secondly colonized by US-an Empire made of imported citizens, moreover, Panama as a tax haven is one that is well established, remember flags of convenience, the land is privately owned, Latifundios, and is used by international mafias to launder ill gotten money making services quite expensive, just look at our investors and you will see narco money everywhere. In Panama, we do not have any real money but a dollarized economy, meaning that the money in Panama does not have a great deal of purchasing power neither any induced value (read Auriti) since there are not industries in Panama, and the little raw materials we have are being stolen by big economies, as you can see with China taking 60% of the copper, when the copper in 2015 have been losing in prices, and bargain hunters and manufacturers from China may be using the low price of copper to replenish their stocks of this metal, so that Panama is losing momentum as less raw material would be available to try to do anything and losing revenues from the low price of copper. Panama is systematically being exploited by these investors coming from abroad, but for such a small Tax Haven with this history of colonization, the future looks quite bleak.

Last month
user
ThinkerSoul

Reply to Captain, I got your point, but you may come from England or maybe US, countries which economies are high income economies. In the case of England, British people have, for years, enjoyed a generous welfare system, something that cannot be found anywhere in Panama. Panama is a Tax Haven coming from a collapsed Spanish Empire and secondly colonized by US-an Empire made of imported citizens, moreover, Panama as a tax haven is one that is well established, remember flags of convenience, the land is privately owned, Latifundios, and is used by international mafias to launder ill gotten money making services quite expensive, just look at our investors and you will see narco money everywhere. In Panama, we do not have any real money but a dollarized economy, meaning that the money in Panama does not have a great deal of purchasing power neither any induced value (read Auriti) since there are not industries in Panama, and the little raw materials we have are being stolen by big economies, as you can see with China taking 60% of the copper, when the copper in 2015 have been losing in prices, and bargain hunters and manufacturers from China may be using the low price of copper to replenish their stocks of this metal, so that Panama is losing momentum as less raw material would be available to try to do anything and losing revenues from the low price of copper. Panama is systematically being exploited by these investors coming from abroad, but for such a small Tax Haven with this history of colonization, the future looks quite bleak.

Last month
user
ThinkerSoul

Reply to Captain, I got your point, but you may come from England or maybe US, countries which economies are high income economies. In the case of England, British people have, for years, enjoyed a generous welfare system, something that cannot be found anywhere in Panama. Panama is a Tax Haven coming from a collapsed Spanish Empire and secondly colonized by US-an Empire made of imported citizens, moreover, Panama as a tax haven is one that is well established, remember flags of convenience, the land is privately owned, Latifundios, and is used by international mafias to launder ill gotten money making services quite expensive, just look at our investors and you will see narco money everywhere. In Panama, we do not have any real money but a dollarized economy, meaning that the money in Panama does not have a great deal of purchasing power neither any induced value (read Auriti) since there are not industries in Panama, and the little raw materials we have are being stolen by big economies, as you can see with China taking 60% of the copper, when the copper in 2015 have been losing in prices, and bargain hunters and manufacturers from China may be using the low price of copper to replenish their stocks of this metal, so that Panama is losing momentum as less raw material would be available to try to do anything and losing revenues from the low price of copper. Panama is systematically being exploited by these investors coming from abroad, but for such a small Tax Haven with this history of colonization, the future looks quite bleak.

Last month
user
ThinkerSoul

Reply to Captain, I got your point, but you may come from England or maybe US, countries which economies are high income economies. In the case of England, British people have, for years, enjoyed a generous welfare system, something that cannot be found anywhere in Panama. Panama is a Tax Haven coming from a collapsed Spanish Empire and secondly colonized by US-an Empire made of imported citizens, moreover, Panama as a tax haven is one that is well established, remember flags of convenience, the land is privately owned, Latifundios, and is used by international mafias to launder ill gotten money making services quite expensive, just look at our investors and you will see narco money everywhere. In Panama, we do not have any real money but a dollarized economy, meaning that the money in Panama does not have a great deal of purchasing power neither any induced value (read Auriti) since there are not industries in Panama, and the little raw materials we have are being stolen by big economies, as you can see with China taking 60% of the copper, when the copper in 2015 have been losing in prices, and bargain hunters and manufacturers from China may be using the low price of copper to replenish their stocks of this metal, so that Panama is losing momentum as less raw material would be available to try to do anything and losing revenues from the low price of copper. Panama is systematically being exploited by these investors coming from abroad, but for such a small Tax Haven with this history of colonization, the future looks quite bleak.

Last month
user
ThinkerSoul

Reply to Captain, I got your point, but you may come from England or maybe US, countries which economies are high income economies. In the case of England, British people have, for years, enjoyed a generous welfare system, something that cannot be found anywhere in Panama. Panama is a Tax Haven coming from a collapsed Spanish Empire and secondly colonized by US-an Empire made of imported citizens, moreover, Panama as a tax haven is one that is well established, remember flags of convenience, the land is privately owned, Latifundios, and is used by international mafias to launder ill gotten money making services quite expensive, just look at our investors and you will see narco money everywhere. In Panama, we do not have any real money but a dollarized economy, meaning that the money in Panama does not have a great deal of purchasing power neither any induced value (read Auriti) since there are not industries in Panama, and the little raw materials we have are being stolen by big economies, as you can see with China taking 60% of the copper, when the copper in 2015 have been losing in prices, and bargain hunters and manufacturers from China may be using the low price of copper to replenish their stocks of this metal, so that Panama is losing momentum as less raw material would be available to try to do anything and losing revenues from the low price of copper. Panama is systematically being exploited by these investors coming from abroad, but for such a small Tax Haven with this history of colonization, the future looks quite bleak.

Last month
user
MarcoP

Great comment Captain. Even in that article there is tendency of linking minimum wage increase to GDP increase. It is very common for people who have no idea about economy. Such link guarantees only one thing: the GDP will stop growing very soon.

Last month
user
Captain

I have no time for the concept of a minimum wage. It should be abolished and let the market prevail. If it had existed when I was a young man I would never have achieved what I did or learned the very important lessons of life that enabled me to progress as I have. I was cleaning hospital floors , taking bodies from beds and later selling brushes door to door. It taught me a lot about humanity and humility. I was given the chance because i was able to enter the workforce at a price I agreed to and the hospital could afford. Now there are few hospital cleaners around as a result of the minimum wage and this has contributed I am sure to the health issues that patients face after admission to public hospitals. I did this work willingly at a low pay but it was not all about the money. I was proud of working and having a job . I was 16 years old at the time. Minimum wage is a disaster for young people seeking work as Macron has recognised in France and the US has yet to learn. Panama still has one which is for the most part ignored so thats a blessing. In this last UK election there was an interview with a Polish immigrant sleeping rough in the streets of London . He was asked by a labour activist what he thought about the election..which way would he have voted ? Well I cant vote he replied but if I could it would br Conservative. The interviewer was shocked ..well he explained they know the value of self reliance and thats how I got here and I too am going to make it. God bless him !

Last month
user
Claire

The new president has dismissed 12,000 "public servants?" Well, a move in the right direction! Now if the ones who remain will just do their jobs!

Last month
user
Claire

The new president has dismissed 12,000 "public servants?" Well, a move in the right direction! Now if the ones who remain will just do their jobs!

Last month
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