S.Ganbaatar: Salary increase will not led to inflation if right policy is followed

S.Ganbaatar, President of the Confederation of Trade Unions, thinks the regular criticism by certain people “at the decision making level in government” that the 30% salary rise for public servants will lead to price increase is “more politically motivated than economically valid”. Inflation and price rise can be kept in check “by following correct monetary and fiscal policies and by implementing proper administrative measures, and not by denying hard working citizens basic remuneration”.

A lethargic government does not react to what is very clear. Most salaried people are “kept alive by drips”, while the law prohibiting unfair competition is still not passed. People expect the government and the people they have sent to Parliament to help them find employment, and live at a level somewhat above mere subsistence, but all they find is opposition to any means to resolve their problems.

Ganbaatar said independent studies reject the claim that increased wages would raise prices, and referred to a proposal mooted two years ago to set up a mechanism to monitor the movement of price bubble in various sectors, and demanded to know why this has not been set up. He was sure the amount needed to pay increased salaries could be found if those who made substantial and often huge profits by manipulating prices were heavily fined. Since this money was already in the market, there would be no inflation. He wondered if it was fair to allow some people to jack up prices at will, and at the same time not allow ordinary purchasers access to the extra money needed to buy goods and services at that higher rates.