Raising wages in Myanmar
Civil servants in any state always ask for an increase in their salaries especially if they are generating huge profits for the government. Labor unions and trade organizations also tend to collaborate with the workers to demand for an increase in their wages. However, once their salaries are increased, traders have developed a habit of increasing the prices of basic commodities because they are aware that once the salaries have been raised, people are more likely to spend. That has been the situation in Myanmar, a region in Asia whose citizens are suffering in the hands of traders and the government is not doing anything.
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when the salaries are increased, the prices of products tend to increase because of the high demand for products and services. The government intervention in the free market system shall ensure the prices are controlled and they are affordable by all its citizens including the non-employed. The wage controls shall also allow the government to determine the amount of salaries that employees are required to be paid and in the event of an increase the government shall also be involved in the decision making because when wages increase, a decrease in employment opportunities is witnessed (Thein, 5). For instance the graph below shows how an increase in $1 can impact the rate of unemployment (Gitis, 2014).
Ben Gitis. How Minimum Wage Increased Unemployment and Reduced Job Creation in 2013. Research, American Action Forum. Published on March 30, 2014. Retrieved from http://americanactionforum.org/research/how-minimum-wage-increased-unemployment-and-reduced-job-creation-in-2013 on 9/11/2014.