Lift wages, boost jobs
Re: "Rethink MFP wage plan", (Editorial, May 29).
The editorial article is what one expects whenever there is talk of increasing the minimum wage -- the neo-classical equilibrium model of the labour market, a theoretical model that argues increases in the minimum wage will decrease the demand for labour.
The minimum wage argument assumes a perfect market and perfect competition, neither of which exists in reality. There is a massive and growing raft of empirical (ie actual observable data) research that shows a rise in the minimum wage usually results in no discernible impact on employment, even upon the lowest income earners; in fact, the opposite is usually the outcome -- a rise in employment -- for all kinds of reasons, such as it gives an incentive for firms to increase productivity.
One example, in Seattle, where the minimum wage of restaurant workers was increased by some 100%, and the employment levels among this group increased dramatically; Why?
Because for the first time, restaurant workers could themselves afford to eat out, thereby increasing the demand for that type of labour.
I would wager that an increased minimum wage in Thailand would not result in increased unemployment nor increased inflationary pressure, except in cases of what has become known as "greedflation", where producers use the excuse of rising costs to push-up prices in excess of any perceived cost increase, in order to boost their profit levels, at the expense of the consumer.
Better together
Re: "Pressure builds on Pheu Thai", (News, May 29).
Emotionally, the pressure group of Pheu Thai called for withdrawal from being partnered with the Move Forward Party (MFP) to remind those youngsters that without Pheu Thai's support, they are sunk. However, mathematics-wise and vice versa, without MFP's support, Pheu Thai would also sink unless they would eat their words in not ever having to associate with the military-led parties (41+36) and forgive what the mentor of Bhumjaithai Party with 71 members, Khun Newin Chidchob, has ever done to the founder of Pheu Thai and the party being the nemesis of the MFP on the cannabis issue.
Sir, to those leaders of the two, be humble and try to accept the twist of life that you two have to be together, just like in the 1958 drama film The Defiant Ones. It tells the story of two escaped prisoners, one white and one black, shackled together, fighting at the beginning and eventually forming a great bond, trust and friendship.