Hasn't the minimum wage pushed up prices!

[i claudius]

I am not sure what you lot think but to my mind the same here has happened as did in the UK ,prices have gone way up and i can see a demand for a yet higher wage soon to cope.

what are your thoughts on it?

[stoneyboy]

It's still cheaper than rip off Britain.

Next.

[MrRealDeal]

I think it has some effect , I do not see another raise to combat the last raise I would expect free government stuff instead but I don't expect that right away either.

[MrRealDeal]

My expectation would be another mistake to combat the last mistake but not the same mistake ! .... free stuff or price controls on food and fuel for example

[thaicbr]

Off course it has. Any sane sensible human being living in the real world knows what happens. That's why the Shinawatra clan ( and toadies) haven't a clue.

Sent from my i-mobile i-STYLE Q6

[thaicbr]

I think it has some effect , I do not see another raise to combat the last raise I would expect free government stuff instead but I don't expect that right away either.

The rise will be in VAT to combat the losses in the populist policy's. Rice pledging. New car/house scheme etc

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[i claudius]

It's still cheaper than rip off Britain.

Next.

so is central Africa ,but i do not want to live there.

next

Edited June 26, 2013 by i claudius

[i claudius]

I do believe that prices have risen quite a lot since the minimum wage was introduced ,especially foodstuff, and cannot see that the poor are any better off ,my sister in law laid off two members of staff ,to save money and i am sure she is far from alone in this ,i remember in the UK when the minimum wage came in ,we lost a very large number of contracts and had to lay off quite a few staff ,we ended up making the same profit by raising prices ,a minimum wage only works for a very short time

Edited June 26, 2013 by i claudius

[smooth expat]

The Baht is already falling. It will keep on falling because the inflation rate is too high here.

[YeahSiam]

Prices might have nudged up a smidge but definitely not to the point where it causes me - nor I suspect, most of us - an affordability problem, surely??

300 baht a day is nothing to most of us but it's a big deal to poorer Thais.

Do some people really think that the illusion they've bought into in this country includes prices that remain stagnant into perpetuity?

[manarak]

Any minimum wage is a huge mistake.

It sounds good in theory, but in reality it pushes costs up and ignores the part of the wage that is often paid "in naturals" such as rice or beer, lao kao.

It also ignores individual productivity.

I think it is a step towards failure of a socialistic model if Thailand continues in this direction.

[Beechboy]

A minimum wage legislates against exploitation.

The price rises on food etc. are due to lots of things including inflationary pressures which are to be expected everywhere. A moderate inflation is a good thing, deflation is worse as would be hyper-inflation. But we are hardly talking about this.

The minimum wage will obviously contribute to price rises, but how can it be but a drop in the ocean being so thinly spread out as it surely is?

Exploited workers slaving for long hours for peanuts is reminiscent of the some of the worst aspects of the original Industrial Revolution in England, which in turn led to the rise of union power.

This is not a "Power to the People" rant, but I for one do not object to paying a little extra for my food and drink whilst being content in the thought that this will contribute to the well-being of the less fortunate in society. Especially those whose circumstances force them to work in unrewarding jobs.

Neither do I object to paying more for the shirt on my back knowing that it is not produced in a sweatshop. Buying the latter would put me at odds with myself as a contributor to such evils.

The fundamentals of socialism, which all societies should embrace, are decency and concern for our fellows should they be deserving of it. The extremes of Socialism present other evils.

Edited June 26, 2013 by Beechboy

[rene123]

When you basically hire a politician to take care of your business you only get back 10% of your investment. The other 90% gets siphoned off into other political pockets. That is how it can cost the government $100 for a $10 hammer. It happens in every country but it's just more obvious in Thailand.

[theblether]

It doesn't matter of the wage is relatively low at 300 baht per day, it sets off an inflationary spiral which we are seeing already. Fair comment that it doesn't matter to most of us, but it does matter to those that thought they would be better off but are now paying too much for basics.

They'll be back looking for even more money, the manufacturers start heading for Cambodia, the service industries start to do with less staff, unemployment increases, social unrest, and bingo. A recipe for disaster.

[MrWorldwide]

It doesn't matter of the wage is relatively low at 300 baht per day, it sets off an inflationary spiral which we are seeing already. Fair comment that it doesn't matter to most of us, but it does matter to those that thought they would be better off but are now paying too much for basics.

They'll be back looking for even more money, the manufacturers start heading for Cambodia, the service industries start to do with less staff, unemployment increases, social unrest, and bingo. A recipe for disaster.

Right, so you were happy with employers paying workers whatever pittance they felt appropriate for a day's work ? Really not sure why a multi-millionaire like yourself would even be concerned by this, blether, Somewhere between your first-class flights and five-star hotels, why would you give a toss about prices at the 7-11 ?

[MrRealDeal]

Has anyone even calculated the rise in inflation fairly before until now taking into account inflation not related to Thailand to see what we are even talking about ?

All I really know is my 2 beer chang and pack of smokes all together went up so little I can't remember what it was before it's now 45 and 65 I think it used to be 150 so that 5 bht on 150 which is pretty low inflation rate compared to the raise which honestly don't remember what it was before it was 300 !

My guess is the wage rate at the uni level makes them pretty much better off and the 300 bht slightly better off.

Could someone refresh my memory on what a pack of Krong and the beer chang used to be at 7-11 before the last increase for me please ? I really don't remember

And what was the wage I forgot that to ! lol

[Scottythai]

It's nominal. I personaly hope wages do increase and things get a bit more expensive might drive away some of the people who just scrape by or some of the masses of lets take the family to holiday in Thailand groups. Maybe then Thailand can go back to being a bit more quiet and a bit more chill

[Jasun]

The wage increases were partly in response to a rise in basics - oil, sugar, cooking gas etc.

[MrRealDeal]

It's nominal. I personaly hope wages do increase and things get a bit more expensive might drive away some of the people who just scrape by or some of the masses of lets take the family to holiday in Thailand groups. Maybe then Thailand can go back to being a bit more quiet and a bit more chill

I would prefer to see a retirement visa raised to 2 million bht and some sort of entry fee of 6000 bht or so

[Scottythai]

It's nominal. I personaly hope wages do increase and things get a bit more expensive might drive away some of the people who just scrape by or some of the masses of lets take the family to holiday in Thailand groups. Maybe then Thailand can go back to being a bit more quiet and a bit more chill

I would prefer to see a retirement visa raised to 2 million bht and some sort of entry fee of 6000 bht or so

Could not agree more

[GuestHouse]

The Bht300/day minimum wage (and remember this is not a nationwide Bht300/day) is a popularist policy, but like the Bht30 health care scheme it is one that addresses a real social need. While arguing about the motives we are in danger of missing the real point that this policy helps hundreds of thousands, perhaps millions of Thais living at near or below the poverty level.

Those who argue against the minimum wage, here in Thailand, or indeed elsewhere, miss the points that the minimum wage is almost always below the 'normal low wage' levels and therefore addresses wage abuse of people at the very bottom of the wage structure.

They miss too the point that putting money in the hands of poor people, who lets remember are working, injects cash directly into local economies - Poor people spend all the money they have.

The OP or anyone else who thinks the minimum wage is forcing up inflation needs to take some time out to read up on the raft of government policies (and corruption in those policies) which are the actual cause of market stresses forcing up inflation.

They might also ponder why is it that corporations bleating about minimum wages are able to amass vast (really vast) cash reserves - not paying taxes is one means, but manipulating markets and market prices is another.

[jaideeguy]

The day after the raise in minimum wages, our home delivered drinking water went from 15thb to 18thb......just to begin with.

[chiang mai]

The Baht is already falling. It will keep on falling because the inflation rate is too high here.

[Ulysses G.]

It's nominal. I personaly hope wages do increase and things get a bit more expensive might drive away some of the people who just scrape by or some of the masses of lets take the family to holiday in Thailand groups. Maybe then Thailand can go back to being a bit more quiet and a bit more chill

As long as it remains affordable to you of course.

[blackman]

It's nominal. I personaly hope wages do increase and things get a bit more expensive might drive away some of the people who just scrape by or some of the masses of lets take the family to holiday in Thailand groups. Maybe then Thailand can go back to being a bit more quiet and a bit more chill

I would prefer to see a retirement visa raised to 2 million bht and some sort of entry fee of 6000 bht or so

Could not agree more

it would not make any difference at all

visa agents would make more money by laying on retirement visas and there would be many more long term overstayers who would simply pay 20,000 baht when they want to go anywhere

[chrisinth]

The day after the raise in minimum wages, our home delivered drinking water went from 15thb to 18thb......just to begin with.

I think that's a middleman thing, we are still paying 10 baht....................

[jackr]

It's still cheaper than rip off Britain.

Next.

In what way? For rent and utilities maybe, but if you want to live here and have the same quality foods/drink as UK, you'll be paying more... and there is next to nil QoS. Comparing any country from the first world with Thailand is typically the mistake of the newbie or the rose-tinted glass brigade, then you get dolts musing on what goes on in oz (really, who gives a flying one what happens there?).

Guesthouse: you were right about it being a populist policy (that's it in a nutshell plus the obvious skimming increased revenues), but it hasn't helped your folk living on the poverty line. On the contrary, these are the ones likely feeling the squeeze most because even if the wage hike has matched inflation (which it hasn't), they are no better off.

Op: Unless perhaps you're an oldie who is just happy to be alive and be lucky enough in his 'prime' to be surrounded by 'cuteys', Thailand is a lot less of a value for money destination today--rest of the world price hikes and currency anomalies notwithstanding. The inevitable is just around the corner.

[chrisinth]

It is the same everywhere, the people who will notice the increased costs the most are the ones that are reliant on the minimum wage. The other ironic problem with this are the lay-offs from the companies who were previously paying under minimum to continue output as before. So you now have a case where workers who were paid under the minimum are now no longer being paid at all.

There is also the temptation for some companies to employ workers from neighbouring countries who will happily work for less and keep them off the books.

For some, life will always be a struggle

[jackr]

It's nominal. I personaly hope wages do increase and things get a bit more expensive might drive away some of the people who just scrape by or some of the masses of lets take the family to holiday in Thailand groups. Maybe then Thailand can go back to being a bit more quiet and a bit more chill

I would prefer to see a retirement visa raised to 2 million bht and some sort of entry fee of 6000 bht or so

Says the dude scrimping by on two Changs a day. Incidentally, the last time I bought that stuff it was around 30-35 baht and cigs 40 baht ish ... a bit of a percentage even for the bottom enders, no?

[thaicbr]

There was has been a minimum wage in Thailand for a large number of years. It did go up by about 5% per year. The difference is the huge increase that happened in 2011, double in some provinces. Let's face it this minimum wage increase was a vote buyer with little thought put into implementation.

Wages have generally increased across the board not just minimum wage. A knock on affect. Those semi skilled workers previously on 300b are now on 380-400b etc.

I don't begrudge them. I blame the government for poor implementation.

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