Proposed legislated P200/day salary hike, its effect on the economy

Looking forward to the future of business

Politicians would always want to be popular with the masses, the working man at the expense of economy and over all health of the nation.    There is the prospect that the P200.00/day wage hike will be passed.  We hope that our lawmakers will study and debate well this proposal.  Surely, without the study, it will mean higher prices and many new SMEs unable to meet the said wage:    either they violate or they close shop.   We copy the US example and now they have $37 trillion budget deficit, not to mention industries leaving their country.  Not to mention foreigners investors doing their business elsewhere.  

Think about this.  

We cant just keep printing money or borrow from capital and money markets.  We must keep our prices and costs in line with each other, and investors a just return for their capital

Damocles sword hanging over heads of small scale businessmen in view of the about to be approved legislated P200.00/day wage hike

Looking forward to the future of business

Its campaign  time and most likely this measure will mean more votes for the members of this HOR.  However iit does not dwell among the ones who will bear the burden;   its so easy to pass the measure wihtout the consent of the stakeholders.   Most likely:

    1.  It will cause the demise of small scale and medium enteprises.   At this stressful business environmnet:   inflation, shrinking markets, unstable situation, many can ill afford to survive if at all pay these wage hike.  That is why we have wage board.   This is a hefty  P5,000/month wage hike per month or P65,000 per year.  And if you have 100 employees, thats a whopping P6,500,000 a year, a number that  many cant afford.

   2.  Inflation.  Most likely the manufacturers, producers, traders will pass on the additional burden adding upon layers of price increase in the supply chain:   producers, traders, truckers, middlemen.   We end up with nothing.  Price increases will eat up the gains in wages.

All ready there are allegations of wrong doing in the budgetting process:   insertions, ayudas that really campaign kitties of incumbent senators and congressmen running into billions and now this:   grabbing benefits/more ayudas from private sectors.

Its not easy earning money in business.  It takes hard work, diligence, blood, sweat and tears,  And it all it takes is a stroke of pens to end all these economic activity to help build the nation

Maghunos dili kayo sirs/mams, maawa kayo