From the Financial Times an interesting article
Beijing city to raise minimum wage 21%
essentially the article states that even though there is inflationary pressure, it was important for the lower income people to have more money since they spend a larger proportion of income on necessities. Also there were fears that the gap between the poor and rich was getting wider and could stoke social unrest.
Nationwide minimun wage raises is part of a gov't plan to reduce income disparity
and promote greater consumption by middle and low income families.
Wow , what a concept. I guess those folks never heard of supply side economics.
Couldn't supply a link, the Brits get a little uptight about that
Bookmarks