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    How Much Is The Road Of "Double Wages"?

    2010/9/7 21:56:00 95

    Wages Multiplied The Way To Benefit The People.

    At present, the revision of the draft wage regulations has been completed. The biggest highlight of the draft is the need for collective bargaining for wage growth. The core of the bill is to highlight the "lowering the high limit", that is, the increase in the minimum wage standard and the restrictions on the wages of monopolies, especially the senior managers.


    In terms of restricting the high income of monopoly industries, the draft requirements

    Monopoly industry

    Regularly publish the average wage level, the increase, the amount of growth and so on.

    This means that employees' wage growth will be more and more guaranteed by policies.

    Among them, the most controversial hot topics are frozen monopoly wages, equal pay for equal work, and 5 years of wage increase for the front-line employees in competitive industries.


    "Everything rises, but wages do not go up."

    This is a long-standing discussion among ordinary people.

    Indeed, in terms of the current wage situation in China, the wage earners' income and economic growth are seriously "hanging upside down", and the pressure of the increased cost of living of the working class not only severely dampens the enthusiasm of the masses to participate in the reform, but also may affect the realization of a good and fast economic development, the fundamental pformation of the mode of economic growth and the goal of building a harmonious society.

    The "national income doubling plan" as a huge economic development plan involves the adjustment of administrative and economic resources, involving the government's fiscal and tax policies and subsidy policies, involving industrial adjustment.

    It is hard to do anything by relying on an executive order from the government labor and social security department.


    With the development of China's economy, the income growth of domestic laborers is increasing.

    Gross domestic product

    The growth rate, government revenue growth and price growth are disproportionate, raising the voice of workers' incomes one after another.

    But we should not forget that the premise of Japan's "national income doubling plan", that is, the rapid growth of the economy, has made increasing national income an active source of water. Otherwise, the so-called increase in national income is nothing more than a synonym for inflation and squeezing the profits of enterprises.

    The reform of income distribution should not only make the salaried class enjoy the happiness of purse every day, but also let the majority of the community share the fruits of social development.

    Especially in our society that pursues fairness and justice, we should take the narrowing of the gap between the rich and the poor and the realization of common prosperity as the highest goal.


    I believe that the full implementation of income.

    Distribution reform

    According to the existing national conditions, we should gradually increase the proportion of residents' income in the distribution of national income, and increase the proportion of labor remuneration in the initial distribution.

    Especially in the context of high CPI prices and rising prices, the core of the increase is not the general "wage multiplier" but rather the narrowing of the income distribution gap. It is not only the income gap between the rich and the poor, but also the gap between the government's financial revenue and the people's wage income.

    That is to say, the "multiplier" value in the total sense is obviously less than the value of "reducing" in the sense of distribution.


    As we know, as early as 1960s, Japan launched a 10 year plan for national income doubling, thus achieving economic take-off and becoming a world economic power.

    But most people only know that Japan is a country with high incomes and high consumption. It is not clear what the premise and focus of Japan's implementation of the plan is.

    At that time, Japan clearly pointed out that "national income doubling plan" must be committed to correcting the gap between agriculture and non-agricultural, between big enterprises and small and medium enterprises, between regions and between income groups.

    It is precisely this insisting theme that has formed the "middle class" of nearly 100 million people in Japanese society, and finally realized the simultaneous growth of national income.


    The "national income doubling plan" has been a winning weapon for the Japanese economy to break through the bottleneck, and is regarded as the foundation and turning point of Japan's economic take-off.

    The "national income doubling plan" usually appears in a specific economic stage. When the economy develops to a certain stage, the surplus of products and inflation pressure coexist. The government needs to boost domestic demand; from an export-oriented economy to an inward oriented economy; the government's revenue is far greater than the growth of national income, resulting in savings and investment over consumption, resulting in economic imbalances.

    At that time, the Japanese government had an economic growth plan, the average annual growth rate of the national production per year, in addition to the income plan, and the increase of GNP by 1 times in 1970. Finally, the Japanese government reached the target of 26 trillion yen, with the aim of achieving "rapid economic growth, improving living standards and completing employment". 7.2%%


    The author believes that in the face of China's high price level, the demand for wage growth is not "cause" but "fruit". It is a sharp rise in prices and a significant devaluation of wage purchasing power.

    Therefore, in the face of continuing inflation pressure, increasing wages has become a common practice to share the fruits of economic development.

    These practices are intuitive. If properly operated and well designed, the public can share the benefits instantly, visually and visually.

    But increasing wages is bound to involve complicated computations.

    For example, the "wage multiplier plan" requires detailed and scientific consideration of data such as CPI and GDP, and takes into account economic development stages, balance and differences among groups.


    In fact, in our view, besides GDP, wages and prices, we should also pay attention to profits and taxes.

    When the GDP increased substantially, the proportion of people's wages did not increase, which means the results of economic development were actually shared by corporate profits and national taxes.


    I think that if we want to raise the wage level instead of raising the price level, we can achieve it from the idea of reducing profits and taxes.

    With the general increase of raw materials, the profit margins of enterprises have been very limited, so there is no need to consider reducing profits again.

    Only the wage growth plan that does not harm the interests of enterprises will be accepted willingly by the owners.

    By way of tax relief, we can achieve the goal of increasing wages without compromising prices.

    Given the obvious increase in domestic tax revenue and the fact that fiscal excess has become normal, reducing taxes to support wage growth and ultimately improving the well-being of the people should be a very realistic choice.


    If we say that the reform of income distribution is a "temporary solution" to curb inflation, then there is more "radical cure" in dealing with the international financial crisis, expanding domestic demand, stimulating consumption and actively adjusting fiscal and taxation policies.

    Because, perhaps, timely and positive fiscal and tax policy adjustment is not as intuitive as allowing the benefit of specific groups to distribute red packets and increase wages. But as a more fundamental solution to the problem, a positive fiscal and tax policy adjustment can solve the inflation problem at a deeper level and allow more people to share the fruits of economic development.


    Of course, under the inflationary pressure, the implementation of the "wage doubling plan" and the adjustment of active fiscal and taxation policies, if supplemented by increasing public investment in education, housing, medical care and public health, supplemented by increased social security expenditure and supplemented by the gradual improvement of the welfare and security system, will benefit the people's livelihood in a wider range.

    That is to say, if the active fiscal and tax policy adjustment can be carried out synchronously with the similar "wage doubling plan", the government can benefit the people through the "visible" and "invisible" control measures, so that the people can get tangible benefits.

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