Govt policies 'increasing cost of living'

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Govt policies 'increasing cost of living'

Published: 26 Jun 2012 at 15.58
Online news: Local News

The government’s populist policies and the Commerce Ministry’s failure to curb prices of basic consumer goods are the cause of the steep increase in the cost of living, former commerce minister Narongchai Akrasanee said on Tuesday.

Mr Narongchai, a former senator, said the 300 baht daily minimum wage for labour and the 15,000 baht minimum salary for university graduates policies were the main causes of this problem.

Narongchai Akrasanee (Photo by Pattarachai Preechapanich)

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samut
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Discussion 20 : 27 Jun 2012 at 18.0120
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How do expect the PT Government to be “brave enough” when many of the party members are exactly involved in what you want to have changed. By the way I’m a so called business owner but I pay taxes and everyone including our cleaner has more than 300 baht a day.
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samut
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Discussion 19 : 27 Jun 2012 at 17.5019
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If the rich would pay taxes there would be money to help the poor for example proper education and health care to name the two most important one; but they will not and one fine sample is Mr. Taksin and all the likes from all camps. Had a landlord once till I bought an office building who would charge 70,000 baht a month for rent but in the contract the rent was 7,000 Baht to avoid tax pay.
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nui
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Discussion 18 : 27 Jun 2012 at 05.3418
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Many politicians are shareholders of big food companies through nominees and family members. It is in their interest that prices go up. To receive an acceptance for price increase, they have to increase the income of consumers first. For that populist policy, they will be praised by the very same consumers. When price increase takes effect, vendors increase their prices and consumer complaints start. To lessen those complaints, price control for vendors are introduced but prices for consumer goods still increases to make more profit for the big food companies. The vendors cannot survive with these price controls and must increases their prices and their dishes will get smaller. Prices on fresh markets for vegetables, meat and fruits have gone up again in the last few weeks. That is the status quo today. Figure out by yourself what will be the next steps and how that all ends up.
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franklin
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Discussion 17 : 27 Jun 2012 at 01.2017
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Good on ya mate for having what it takes to point out some of the glaring deficiencies of this Shinawatra government. But be careful because you may find you and your family’s personal information on the red-mob’s intimidation “Wanted List” along with the likes of (deceased) Kurt Cobain.
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spiceman
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Discussion 16 : 27 Jun 2012 at 01.0616
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Khun Narongchai is right on the money. Thai people must learn now how an Economy works and which economic system works best or worst. We can all learn from other people's mistakes so not to repeat them ourselves, like those made by the EU countries such as bankrupting Greece, Spain, Portugal, Ireland, and etc, including the USA, especially in the last 2 decades, as it transformed itself, from the largest creditor, to the largest debtor in the world ($16 trillions & growing). Free Market System continued to be proven true again and again, to be the best way to run an Economy, while populist (socialistic) system, the worst, as being played out as we speak in Greece and Spain. So, hopefully, Thai people will learn to choose as much as Free Market System, while keeping as little socialism or populism as necessary.
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johninbkk
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Discussion 15 : 27 Jun 2012 at 00.2115
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I agree with the former senator on all points, except one. I do not believe the 15,000 baht minimum salary for university graduates will contribute much to inflation as it is only for government workers. It would rather encourage more skilled workers to actually want to work for the government, possibly increasing efficiency of bureaucracy.
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musashi
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Discussion 14 : 27 Jun 2012 at 00.1214
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englishbob #7: I'm not sure why you keep talking about yourself and your "investment" in Thailand. But in response to your comments:

It is laudable that a government empathize with the lower income strata of the population, and tries to help them fight poverty with small adjustments in their salary. Unfortunately, some business owners do not have such compassion and continue to treat Thailand as a big "sweatshop". For these owners, if they wish to take their "investments" out of Thailand, there will be no tears when they leave.

Instead of trying to increase their product portfolio, value add to their services or increase the productivity levels etc., they continue to lament the "hardship" imposed by the minimum wage guidelines. For these myopic owners with a lot of gas in their chests, they will eventually go belly-up even without the minimum wage imposed on them.
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lutac
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Discussion 13 : 26 Jun 2012 at 23.4113
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Government not stimulating the economy fast enough. But then again its not an easy process in a global recession, isn't it?
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englishbob
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Discussion 12 : 26 Jun 2012 at 22.2912
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One more thing to note...
All of the price rises were predicted by economists and BP Posters long before they materialised.
Everything that has happened is exactly in line with what we said would happen.
And there were plenty of Pro PT commentators saying it wouldn't happen... And now those same people are finding excuses such as 'It's a global thing' or 'It's because of the Dems.'
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genii
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Discussion 11 : 26 Jun 2012 at 21.4611
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If people make more money then they are likely to spend more on things they couldn't before. This has to be beneficial to the economy unless everyone is hoarding their salary increases. More people shopping means more buiness for the businessmen and ladies. If prices in certain areas are increasing then their should be a reason why. Disc 7 made very good points about this.
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Govt policies 'increasing cost of living' | Bangkok Post: news