Low-income earners unable to make ends meet on 300 baht minimum wage

[ratcatcher]

but a minimum wage was introduced only in a very few provinces, I think only 6 of them. The rest of the country is without any minimum wage.

but the ultimate solution to exploitation of work and powerty of employed is not a minimum wage, but a socio-economic system, where human needs of all, and not profit for a few, are the objective. That means ending with capitalism. So far thailand is closer to feudalism than global capitalism

That means ending with capitalism.

Good idea, let Thailand be just like the communist Chinese who have built Shanghai up to house the millions of feudal peasants.

Communism doesn't work ask Putin and Xi Jinping.

[scorecard]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Mr. Yongyuth said the minimum wage policy was simply a temporary measure to help boost psychological support that workers were making more money

Rest assured the PTP were definitely not of that opinion when they implemented it. The PTP claimed the instant wage rise would boost the wealth of workers, putting more cash in their pockets.

The DEM's proposed a 25% wage increase before elections which makes more sense and is a gradual step up, but of course the PTP despite the obvious erosive ramifications of a 300 baht minimum wage increase so quickly which we have witnessed decided to propose it anyway, just to out do the DEM's and get those votes.

When the ramifications of this one up man ship set in as the PTP were warned did the PTP admit they were wrong? Did they say "As it turned out you were right"? No, in typical PTP fashion the ignored the problem when yingluck stated “The flood and the hot weather, when combined, could make people feel that product prices are more expensive,” she went on to say “From the information gathered by the government, we can assure you that prices are on a downward trend.” So the official statement from the PTP was prices are going down after the minimum wage went up! Rewrite the history books on what academics have learnt regarding economic forces. yingluck's theory now stands…No one believed her statement though, even the uneducated ones, but the fact she said it highlights her contempt for the people that voted her in and all it did was insult the intelligence of the people.

PTP allow me to believe in alternate universes. In this one;

• the rice scheme was supposed to benefit the poor. It didn't. The poorest were not even eligible.
• The reconciliation bill was supposed to bring reconciliation. It didn't. It nearly started a civil war.
• The first car buyers scheme was supposed to benefit the people. It didn't. Traffic jams got worse.
• The tablet per student scheme was supposed to improve children's education. It didn't. They broke, teachers did not know how to use them, they could not be charged in schools with no power etc etc.

In the alternate universe I could see them introduce a civil war bill that brought peace.

Lets hope the Junta can resolve these issues for the good people of Thailand that have already suffered long enough.

Lots of good points.

Where's fabie to defend the pt policies?

Or has fabie run out of steam?

[Oziex1]

"Low-income earners unable to make ends meet on 300 baht minimum wage"

.

Let them eat cake..................................

You'll have them setting up the guillotine with that quote Mary.

[ggold]

as I predicted 2 years ago - the minimum wage policy would fail due to inflation getting out of control - another vote buying policy of Thaksin that has proven to be destructive

I hope the Thais realise now that voting for these unworkable populist policies has backfired in their faces - promising people a 40% pay rise to get their vote

I wonder have the voters learned from this

Some very careful fiscal control needs to take place now before this completely implodes

Inflation must be held in check or this country is going to get very expensive

Droping interest rates and fuel tax would be a good start

which in turn will devalue the baht - that keeps the export business alive including tourism farming and others - the downside is that Thais wishing to travel abroad have to pay more - so what

The various schemes that PTP introduced to win votes is going to cost this country dearly but they need to do the right thing now and take it on the chin

which in turn will devalue the baht - that keeps the export business alive including tourism farming and others - the downside is that Thais wishing to travel abroad have to pay more - so what

You also forgot that it would cost more for imports, so what? it would be more expensive to live.

When the financial crisis hit the value of foreign currencies, we were getting less baht for our $ £.

But if the signs are to be believed the west is moving out of crisis, so maybe it is expected that the Baht will return to pre crisis levels. Maybe it has less to do with the situation here in Thailand. But to devalue the currency pushes costs up not down. That would not help People here.

what exactly do you think Thai people import ? Most of the stuff they eat - drive in - furnishings - electrical goods - building materials......................they are all made here, yes there are exceptions - fuel - some raw materials, do you think Thailand imports steel for the Toyota factories ? or does Toyota ?

Thailand eats it's own produce - exports a considerable amount of it which contributes to likely over 70% of GDP (that includes tourism) - Japan etc employ people and pay wages - how much do they actually contribute to the trade balance is likely negligible - they import materials and export cars - Thai workers get paid in the process - the government gets corporation tax

Meats vegetables are all going up in price, these are things that Thais buy - it's called inflation - the value of the baht contributes nothing to this except for energy which can be subsidised

Thailand is an exporter that is why the baht needs to drop

Actually Thailand imports nearly as much as it exports. Most raw materials are imported. And yes Thailand imports metals as well. So again if Thailand devalues it's currency as per you're suggestion imports will cost more.

http://atlas.media.mit.edu/profile/country/tha/

As for inflation to june it stood at 2.35% and over a 10 year period it averages out at 4.4% annually. Also when you say the baht needs to drop. what do you mean. if the baht dropped you would get more baht for you're dollar. If it got stronger then you would get less.

again if the baht dropped it would cost more to import. I think you mean the baht should be stronger. You would get less for you're Dollar, but imports would be cheaper.

Edited July 11, 2014 by ggold

[ericthai]

Everyone was crying for a weaker baht.

Well they got it, and everything went up in price. Inflation. its a bitch

it's a little more complex than that - the strength weakness of the baht does not drive inflation - it is a product of measure taken to curb inflation - measures will likely have the effect of driving inflation and the baht down which is exactly what is needed

Virtually every drop of fuel in Thailand is imported and priced in USD.

A cheaper baht feeds directly into the cost of everything because you can't make or move anything without oil, gas and elextricity.

Just go an ask even the most labour intensive factory what went up the most last year. His boiler, his electricity or some other input.

Actually it's not true that Thailand imports all of it's oil. Thailand uses a little less than a 1,000 Barrels per day of which Thailand produces

about 1/3 of that.

[nong38]

It was never intended to benefit the low paid, the 300bts a day only over applied to people on a payroll, street traders, sole traders would have loved to make 300bts a day clear. It was always a political stunt that grew inflation, amazingly no one saw it fir what it was, a shameful piece of electioneering which fooled the electorate into thinking everyone was soon going to be earning more money. They forgot 2 things, inflation and it never applied to them, in most cases.

[Thai at Heart]

Everyone was crying for a weaker baht.

Well they got it, and everything went up in price. Inflation. its a bitch

it's a little more complex than that - the strength weakness of the baht does not drive inflation - it is a product of measure taken to curb inflation - measures will likely have the effect of driving inflation and the baht down which is exactly what is needed

Virtually every drop of fuel in Thailand is imported and priced in USD.

A cheaper baht feeds directly into the cost of everything because you can't make or move anything without oil, gas and elextricity.

Just go an ask even the most labour intensive factory what went up the most last year. His boiler, his electricity or some other input.

Actually it's not true that Thailand imports all of it's oil. Thailand uses a little less than a 1,000 Barrels per day of which Thailand produces

about 1/3 of that.

I said virtually. I think you might have your zeros in the wrong place . Thailand uses quite a lot more than 1000 barrels per day.

Beyond that, many primary inputs for all sorts of things which are manufactured in thailand are imported, so a weaker baht goes straight onto the bottom line of everything they make.

Edited July 11, 2014 by Thai at Heart

[ratcatcher]

Everyone was crying for a weaker baht.

Well they got it, and everything went up in price. Inflation. its a bitch

it's a little more complex than that - the strength weakness of the baht does not drive inflation - it is a product of measure taken to curb inflation - measures will likely have the effect of driving inflation and the baht down which is exactly what is needed

Virtually every drop of fuel in Thailand is imported and priced in USD.

A cheaper baht feeds directly into the cost of everything because you can't make or move anything without oil, gas and elextricity.

Just go an ask even the most labour intensive factory what went up the most last year. His boiler, his electricity or some other input.

Actually it's not true that Thailand imports all of it's oil. Thailand uses a little less than a 1,000 Barrels per day of which Thailand produces

about 1/3 of that.

"Thailand uses a little less than a 1,000 Barrels per day of which Thailand produces about 1/3 of that."

I am neither a mathematician or an oil expert, but I think your number is somewhat skewed. I believe Thailand consumes over 350,000 barrels a day, according to the link.

Perhaps those in the know can elucidate.

http://www.nationmaster.com/country-info/stats/Energy/Oil/Consumption

[Thakkar]

Thailand has seen continuos y-o-y economic growth for many years, as well as productivity growth and growth in corporate profits. Very little of the benefits had trickled down to the bottom 25% of the population despite the low unemployment rate. This is only possible under conditions of coordinated wage suppression policies with official connivance. I'm not talking here of companies with 10/50/100 staff. It's the big guys employing thousands, the construction sector and farming policies that determine wage growth.

By raising minimum wage, Takshin (let's face it-- he was the real PM) may have done the right thing for the wrong reason (self promotion), but it was still the right thing, though it could've been phased in, in stages.

While higher wages do contribute to inflation, the recent inflationary surge is a result of many factors, including a reduction in subsidies, higher world oil prices, corporate collusion, a weaker currency and reduced competition. Carrefour's exit, for example, led directly to higher supermarket prices when an existing competitor bought Carrefour's operations.

Some solutions include:

Greater promotion of locally-produced renewable energy.

Investment in transport infrastructure.

A though competition law to curb anti-competitive and collusive practices.

Curb abusive labor practices that keep down wages like employing and underpaying of illegals.

Curb property speculation with a capital gains tax.

To get there, Thailand will need a government that works for ALL the people, not one that works for itself or for a favored sector.

T

[AnotherOneAmerican]

Actually Thailand imports nearly as much as it exports. Most raw materials are imported. And yes Thailand imports metals as well. So again if Thailand devalues it's currency as per you're suggestion imports will cost more.

Assuming Thai prices are related to product cost plus.

That's rarely true, most products are sold on the basis of what the market will stand.

Imported items don't follow exchange rates at all, as far as I can see, the profits for the big boys vary and the end user pays the same.

[Mudcrab]

I still reckon it's fairly cheap in the grand scheme of things, but I'm not living on a Thai wage. I can certainly understand that the low income earners really do struggle. All of our Thai staff are on wages above the minimum wage, and get other benefits such as accommodation and meals, which certainly helps - but even then it's still tough.

I always get a chuckle from posters like this.."they get other benefits etc" You generosity astounds me. Where is the benefit when you have to live and eat at your place of work.

Why don't you pay them a sufficient amount where they can live, eat and sleep with their family and loved ones?

Easy to see why you don't live on a Thai wage.

[Leung Falang]

Everyone was crying for a weaker baht.

Well they got it, and everything went up in price. Inflation. its a bitch

it's a little more complex than that - the strength weakness of the baht does not drive inflation - it is a product of measure taken to curb inflation - measures will likely have the effect of driving inflation and the baht down which is exactly what is needed

Virtually every drop of fuel in Thailand is imported and priced in USD.

A cheaper baht feeds directly into the cost of everything because you can't make or move anything without oil, gas and elextricity.

Just go an ask even the most labour intensive factory what went up the most last year. His boiler, his electricity or some other input.

When we bought a home in Thailand in 2009, I noted that electricity was about $.10 a kilowatt, same as Texas in the USA at the time. Texas is now at $.09 and Thailand is at $.13+ where we live. Texas is able to use natural gas to fire many generators and some coal.

[Muhendis]

I guess the reason that the cost of living is higher is to a large extent due to the steep rise in minimum wage. If so, raising the minimum wage further might not have the desired effect.

Actually thats not true. The reason for the increase in the cost of living is solely down to the profiteering requirements of the retailers. Many prices in Thailand are similar to those in the UK however the UK minimum wage is £6.31 per hour. The Thai equivalent is about £5.54 per day. The Thai retailers could absorb any small minimum wage increases, but they don't want to so up go the prices and blame it all on the poorest paid in the community.

[ratcatcher]

One of the major things to remember is that Thais, like most people have Great Expectations and just because they earn less than B20,000 a month doesn't stop them from buying a mobile phone or IPad worth nearly, or more than, a months salary. After all it's important to keep up appearances.

The marketplace bombards people all the time with new things to buy. I would personally love to go out and buy an expensive car, but I just cannot afford it, so I drive an older one. Suits me fine, I have no envy of people who have more money than me and the things they buy with that money.

To quote Charles Dickens

Mr Micawber's famous, and oft-quoted, recipe for happiness:

"Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

Charles Dickens, David Copperfield

[ginjag]

18 year old lad, N/E.

m/cycle payments...............................2,500 per month,

Food....................................................3,000,

Water..................................................... 250,

Mobile top up..........................................250,

Room..................................................2,000,

Min wage 9,000.

Save 1,000. per month. If he already has a m/cycle Save 3,500 per month.

[sailbuddy]

as I predicted 2 years ago - the minimum wage policy would fail due to inflation getting out of control - another vote buying policy of Thaksin that has proven to be destructive

I hope the Thais realise now that voting for these unworkable populist policies has backfired in their faces - promising people a 40% pay rise to get their vote

I wonder have the voters learned from this

Some very careful fiscal control needs to take place now before this completely implodes

Inflation must be held in check or this country is going to get very expensive

Droping interest rates and fuel tax would be a good start

which in turn will devalue the baht - that keeps the export business alive including tourism farming and others - the downside is that Thais wishing to travel abroad have to pay more - so what

The various schemes that PTP introduced to win votes is going to cost this country dearly but they need to do the right thing now and take it on the chin

Where do you get a 40% increase, Min wage was 150B and it went to 300B that is a 100% increase. We were paying workers at our factory 200B a day, of course we followed the rules and paid the 300B but we could go any higher than that. Not only did our labor rate go up but our raw material rate went up because our suppliers had to pay more for labor.

allot of People don't realize how far reaching it is when you make such a drastic increase in labor rates. You can see what happened in food prices and everything else here in Thailand. I'm sure allot of farmers are still using Cambodians and not paying 300B a day, only 100 or 120 a day. If all of the framers ore forced to start paying 300B you will see increase in the local markets too. We are having a hard time competing with manufactures in Vietnam and China. Any more increase we will need to look at relocating to Vietnam, Cambodia or China.

Well my opinion is this. As has been mentioned in this thread the 'problem' is a systemic one. It has to do with profits and how labor is just a resource in the current economic system that rules the world. It's not a mystery. The majority of the world runs on this system and the majority of the world is poor. It creates poverty while creating wealth for a few. The many who argue from within the tenets of the economic system are 'right' according to the economic theories of do this and that will happen but completely off the mark if not blind as many are to the larger picture that the tenets, rules, relationships of the system are designed in such a way as to create the horror that envelops the world today. This is the same everywhere not just Thailand. The decades long race to the bottom has, according to this economic systems tenets, been carried out with the best intentions of being competitive, increasing productivity, gaining market share, giving investors a better return on their money. Intentions of the business model in other words. This model does not seek to create a better life for the people in the world but profits for investors. The necessary fallout of these policies of social economic governance are all around us. Middle classes being decimated, wages stagnant for decades in the face of rising inflation, quality of life ruined, insecurity, fear, opportunity only for a few and even basic needs of health care, shelter etc. crushed and ignored as the only real benefactors to be considered are those with capital and the consequences of this business model be damned. Despoil the planet, the food supply, the environment, the ability for families to have a stable abundant life and old age as they are nothing but human resources to be used as part of a business equation to earn more profits and benefits for the few servants of capital. The rape, pillage, looting has reached levels in the last 20+ years that would make even the Romans blush. The mass of people who live on this planet are served only incidentally in this system and in spite of it not because of it. By any measure except how are the few percent are doing it is an abysmal failure and yet the comments roll on that we just have to use the system's tools and everyone will do better. Has no one paid attention these last decades? While the productivity has soared and profits ballooned the mass of people have been cut loose and seen their lives go to shit as they are virtual slave labor that is not needed anymore. There is so much more, but if this is not already obvious then why belabor the point. So to speak. Better to make the argument redundant as it is not needed to produce the intended result. Build some more palatial homes, malls, condos. Create more billionaires and show the world cup for distraction. Not to worry. More new mobile phones coming out soon, all will be well.

[Mudcrab]

Give the little darlings 5,000 Bht per day, in fact some of them are demanding it and even getting it I would say that in the Philippines the average wage probably wouldn,t be 100 Bht per day, so 1st January 2015 could be very interesting !

Why?? Is it your birthday? Are we invited?

[i claudius]

18 year old lad, N/E.

m/cycle payments...............................2,500 per month,

Food....................................................3,000,

Water..................................................... 250,

Mobile top up..........................................250,

Room..................................................2,000,

Min wage 9,000.

Save 1,000. per month. If he already has a m/cycle Save 3,500 per month.

God i wish my lad was so cheap to keep

[canarysun]

I live on LESS than these " 300 " baht a day brigade! The trouble is that many do NOT know how to budget properly! It is quite simple to live a comfortable life on 5,000 to 8,000 baht a month ( all in inc rent ) but much of the money is " wasted " on Motorbike Taxis due to being lazy! I walk everywhere ( out of choice & enjoyment ) Walking 10 KM every day is perfectly normal for me but for the Thais they don't seem to understand the concept of " going for a walk "........ lol

[ggold]

Actually Thailand imports nearly as much as it exports. Most raw materials are imported. And yes Thailand imports metals as well. So again if Thailand devalues it's currency as per you're suggestion imports will cost more.

Assuming Thai prices are related to product cost plus.

That's rarely true, most products are sold on the basis of what the market will stand.

Imported items don't follow exchange rates at all, as far as I can see, the profits for the big boys vary and the end user pays the same.

I was not suggesting the value of the baht determined the value of a product for export. But a devaluation of the baht would have a knock on effect.

[wwest5829]

whatsupdoc.

I guess the reason that the cost of living is higher is to a large extent due to the steep rise in minimum wage. If so, raising the minimum wage further might not have the desired effect.

The main reason there was a rise in the minimum wage level was so as people could live as opposed to exist.

No doubt you are comfortably living on an average Thai wage in your ivory tower?

Take it easy, what's with the "ivy tower" comment. I do totally agree with you on a liveable wage here, in the U.S. and elsewhere. Ha! That's why too many in the U.S. would paint me as a "far left" thinker.

[wwest5829]

whatsupdoc.

I guess the reason that the cost of living is higher is to a large extent due to the steep rise in minimum wage. If so, raising the minimum wage further might not have the desired effect.

The main reason there was a rise in the minimum wage level was so as people could live as opposed to exist.

No doubt you are comfortably living on an average Thai wage in your ivory tower?

It didn't work though did it, any rise in wages must be coupled with a rise in productivity otherwise it doesn't work,prices just rise to compensate.

I don't understand, you propose that there not be minimum wages required? Do you think business will raise wages in fairness to the profits they earn? Not my understanding of history. I love the writer, Charles Dickens, but I don't want to see a return to England in the 1850's before government intervention to address the unmet needs in society.

[Mudcrab]

as I predicted 2 years ago - the minimum wage policy would fail due to inflation getting out of control - another vote buying policy of Thaksin that has proven to be destructive

I hope the Thais realise now that voting for these unworkable populist policies has backfired in their faces - promising people a 40% pay rise to get their vote

I wonder have the voters learned from this

Some very careful fiscal control needs to take place now before this completely implodes

Inflation must be held in check or this country is going to get very expensive

Droping interest rates and fuel tax would be a good start

which in turn will devalue the baht - that keeps the export business alive including tourism farming and others - the downside is that Thais wishing to travel abroad have to pay more - so what

The various schemes that PTP introduced to win votes is going to cost this country dearly but they need to do the right thing now and take it on the chin

Where do you get a 40% increase, Min wage was 150B and it went to 300B that is a 100% increase. We were paying workers at our factory 200B a day, of course we followed the rules and paid the 300B but we could go any higher than that. Not only did our labor rate go up but our raw material rate went up because our suppliers had to pay more for labor.

allot of People don't realize how far reaching it is when you make such a drastic increase in labor rates. You can see what happened in food prices and everything else here in Thailand. I'm sure allot of farmers are still using Cambodians and not paying 300B a day, only 100 or 120 a day. If all of the framers ore forced to start paying 300B you will see increase in the local markets too. We are having a hard time competing with manufactures in Vietnam and China. Any more increase we will need to look at relocating to Vietnam, Cambodia or China.

Well my opinion is this. As has been mentioned in this thread the 'problem' is a systemic one. It has to do with profits and how labor is just a resource in the current economic system that rules the world. It's not a mystery. The majority of the world runs on this system and the majority of the world is poor. It creates poverty while creating wealth for a few. The many who argue from within the tenets of the economic system are 'right' according to the economic theories of do this and that will happen but completely off the mark if not blind as many are to the larger picture that the tenets, rules, relationships of the system are designed in such a way as to create the horror that envelops the world today. This is the same everywhere not just Thailand. The decades long race to the bottom has, according to this economic systems tenets, been carried out with the best intentions of being competitive, increasing productivity, gaining market share, giving investors a better return on their money. Intentions of the business model in other words. This model does not seek to create a better life for the people in the world but profits for investors. The necessary fallout of these policies of social economic governance are all around us. Middle classes being decimated, wages stagnant for decades in the face of rising inflation, quality of life ruined, insecurity, fear, opportunity only for a few and even basic needs of health care, shelter etc. crushed and ignored as the only real benefactors to be considered are those with capital and the consequences of this business model be damned. Despoil the planet, the food supply, the environment, the ability for families to have a stable abundant life and old age as they are nothing but human resources to be used as part of a business equation to earn more profits and benefits for the few servants of capital. The rape, pillage, looting has reached levels in the last 20+ years that would make even the Romans blush. The mass of people who live on this planet are served only incidentally in this system and in spite of it not because of it. By any measure except how are the few percent are doing it is an abysmal failure and yet the comments roll on that we just have to use the system's tools and everyone will do better. Has no one paid attention these last decades? While the productivity has soared and profits ballooned the mass of people have been cut loose and seen their lives go to shit as they are virtual slave labor that is not needed anymore. There is so much more, but if this is not already obvious then why belabor the point. So to speak. Better to make the argument redundant as it is not needed to produce the intended result. Build some more palatial homes, malls, condos. Create more billionaires and show the world cup for distraction. Not to worry. More new mobile phones coming out soon, all will be well.

I read some of what you wrote but to be honest it was difficult. Break your post into paragraphs and I will read it all.

[Mudcrab]

I live on LESS than these " 300 " baht a day brigade! The trouble is that many do NOT know how to budget properly! It is quite simple to live a comfortable life on 5,000 to 8,000 baht a month ( all in inc rent ) but much of the money is " wasted " on Motorbike Taxis due to being lazy! I walk everywhere ( out of choice & enjoyment ) Walking 10 KM every day is perfectly normal for me but for the Thais they don't seem to understand the concept of " going for a walk "........ lol

I ran out of likes but I like this. I don't think it is only the Thais that don't like to walk though....many..many farang are always whining about the cost of taxis etc too.

[Soutpeel]

Everyone was crying for a weaker baht.

Well they got it, and everything went up in price. Inflation. its a bitch

it's a little more complex than that - the strength weakness of the baht does not drive inflation - it is a product of measure taken to curb inflation - measures will likely have the effect of driving inflation and the baht down which is exactly what is needed

Virtually every drop of fuel in Thailand is imported and priced in USD.

A cheaper baht feeds directly into the cost of everything because you can't make or move anything without oil, gas and elextricity.

Just go an ask even the most labour intensive factory what went up the most last year. His boiler, his electricity or some other input.

Actually it's not true that Thailand imports all of it's oil. Thailand uses a little less than a 1,000 Barrels per day of which Thailand produces

about 1/3 of that.

1000 barrels a day and the rest ! (220000 litres LOL) further oil produced in Thailand is not refined in Thailand anyway and it produces a lot more than 333 barrels a day, try about between 60 and 80, 000/day, of crude, not factoring in condensate

Your sums are way off primary school remedial arithmetic for you dear boy

Edited July 11, 2014 by Soutpeel

[JacChang]

Poor little ants never learn.

Let's draw a circle. We own this circle. Those who depend on minimum income wage are the ants inside this circle. The total ant population will always have 10%. If there are 10 billion in the economy, which equals the circle being the size of 10 billion. 1 billion is owned by the ant population. 9 billion owned by the rich. I don't care what inflation, what increase in costs, if the government decides to increase minimum wages (that to me is just a monetary policy, to inject more money into the economy to help with circulation and stimulate the economy), etc. The ant population gets a double raise in heir salary to 2 billion. All other variables remaining constant, total economy 11 billion, ants own 1.1 billion, rich owns 9.9 billion. Yes....yes some are scratching their heads, how that is mathematically wrong. If you are rich, you'll see it as how I see it. If you are poor, you won't.

Fact of the matter is, the ants think they have 2 billion, because it's stated on their new paycheck, their new balance being deposited in their accounts. However, in reality, in real terms, not nominal, they have only received a 10% real increase in their wages, while blindly thinking their paycheck has doubled. IF, according to my scenario, the average somchai thinks his salary has doubled. Smashes his cellphone, gets the newest brand spanking cellphone on debt, gets some beer... actually a whole box and sits on the streets and starts drinking. Is he richer? Or is he poorer? After this wage doubling. He would be richer by 10% if he maintains his expenses.

Now you ask, how my first paragraph calculation works. The economy is nothing but a give and a take. Ants only know how to take from 1 source, which is a job. However, ants have many gives, unlimited. The more you give them, the more they give away. It never stays. Not like the rich. The rich accumulate wealth. Simply that's it. No magic recipe. If you ever asked why you are poor, or struggling in life. I only got one question to ask you, do you have any wealth? Do you even own one stock, just one. Surprising, you don't have to answer it, I already know. The rich accumulate wealth, every business, is the market that takes takes AND TAKES. All the somchais in this economy will only give to these businesses. Go ahead, I dare you, ask any somchai what else he can do with his money. Only 1 answer. Give. It doesn't matter how much money the somchai makes, we know, it will return to our pocket. Where else can it go?

Back to the point. Somchai's wage from 300 becomes 600. Real terms, real wage from 300 to 330. Before, make 300, spend 300. Now make 330, spend 600. Oh no...

Why 600? Like others have stated, inflation, cost increases results in price increases, consumer confidence spending increases as they see they have higher money, and the last, my favorite. The rich NEVER loses. If you ever try to make them make less money, their mouths become bigger and just SUCK MORE by force. Rich = owns the economy. The eggs you buy, the house your renting from, the smoke your breathing in from my exhaust, the skytrain you are paying for, the electricity bills, all comes back to our pockets.

Of course, there will be the one who will be picky about the numbers and figures here. The following above statements have not been verified by the FDA, mathematical calculations and numbers given are for illustrative purposes only and serves no accurate purpose. YOU HAVE BEEN WARNED!

[PattayaPhom]

Welcome to the real world

[Soutpeel]

Poor little ants never learn.

Let's draw a circle. We own this circle. Those who depend on minimum income wage are the ants inside this circle. The total ant population will always have 10%. If there are 10 billion in the economy, which equals the circle being the size of 10 billion. 1 billion is owned by the ant population. 9 billion owned by the rich. I don't care what inflation, what increase in costs, if the government decides to increase minimum wages (that to me is just a monetary policy, to inject more money into the economy to help with circulation and stimulate the economy), etc. The ant population gets a double raise in heir salary to 2 billion. All other variables remaining constant, total economy 11 billion, ants own 1.1 billion, rich owns 9.9 billion. Yes....yes some are scratching their heads, how that is mathematically wrong. If you are rich, you'll see it as how I see it. If you are poor, you won't.

Fact of the matter is, the ants think they have 2 billion, because it's stated on their new paycheck, their new balance being deposited in their accounts. However, in reality, in real terms, not nominal, they have only received a 10% real increase in their wages, while blindly thinking their paycheck has doubled. IF, according to my scenario, the average somchai thinks his salary has doubled. Smashes his cellphone, gets the newest brand spanking cellphone on debt, gets some beer... actually a whole box and sits on the streets and starts drinking. Is he richer? Or is he poorer? After this wage doubling. He would be richer by 10% if he maintains his expenses.

Now you ask, how my first paragraph calculation works. The economy is nothing but a give and a take. Ants only know how to take from 1 source, which is a job. However, ants have many gives, unlimited. The more you give them, the more they give away. It never stays. Not like the rich. The rich accumulate wealth. Simply that's it. No magic recipe. If you ever asked why you are poor, or struggling in life. I only got one question to ask you, do you have any wealth? Do you even own one stock, just one. Surprising, you don't have to answer it, I already know. The rich accumulate wealth, every business, is the market that takes takes AND TAKES. All the somchais in this economy will only give to these businesses. Go ahead, I dare you, ask any somchai what else he can do with his money. Only 1 answer. Give. It doesn't matter how much money the somchai makes, we know, it will return to our pocket. Where else can it go?

Back to the point. Somchai's wage from 300 becomes 600. Real terms, real wage from 300 to 330. Before, make 300, spend 300. Now make 330, spend 600. Oh no...

Why 600? Like others have stated, inflation, cost increases results in price increases, consumer confidence spending increases as they see they have higher money, and the last, my favorite. The rich NEVER loses. If you ever try to make them make less money, their mouths become bigger and just SUCK MORE by force. Rich = owns the economy. The eggs you buy, the house your renting from, the smoke your breathing in from my exhaust, the skytrain you are paying for, the electricity bills, all comes back to our pockets.

Of course, there will be the one who will be picky about the numbers and figures here. The following above statements have not been verified by the FDA, mathematical calculations and numbers given are for illustrative purposes only and serves no accurate purpose. YOU HAVE BEEN WARNED!

I stopped reading at let's draw a circle as I was immediately reminded of Rolf Harris for some reason

[mrtoad]

I still reckon it's fairly cheap in the grand scheme of things, but I'm not living on a Thai wage. I can certainly understand that the low income earners really do struggle. All of our Thai staff are on wages above the minimum wage, and get other benefits such as accommodation and meals, which certainly helps - but even then it's still tough.

I always get a chuckle from posters like this.."they get other benefits etc" You generosity astounds me. Where is the benefit when you have to live and eat at your place of work.

Why don't you pay them a sufficient amount where they can live, eat and sleep with their family and loved ones?

Easy to see why you don't live on a Thai wage.

You assume too much. I get a chuckle out of tards like you who have no idea.

Most of the staff are living out of province and they are all getting a proper wage.Those that are from the area live in their own places. They get other stuff sucha as health insurance, additional leave, travel etc We must do something riggt cos most have been with me for at least 3 years.

What gave you done for anyone lately? Probably not a lot.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

Edited July 11, 2014 by mrtoad

[gabruce]

Funny how those with a nice fat bank account are the first to criticize raising wages. "What? I have to pay my servants more? no way!" Let have those driving the BMWs and Benzes live on 300 baht a day, even for one week. Suicides would increase 500%.

At least recognize that there is controversy over the effects/results of minimum wages. The current popular sentiment is that it is a good thing to do. The contrary position is that it misbalances the economy, resulting in inflation and less real income for the low income earners. There is no such thing as economic science, it's all theories vs common sense, and neither work exceptionally well. I would venture to say that the majority of the people against minimum wages have that position because they believe that the result is not beneficial. Could be wrong. I also think that it's incorrect to ignore the effect of warehousing hundreds of billions of baht of rice in warehouses (in effect throwing the rice away and putting extra money in the pockets of the wealthy warehouse owners).

By the way, I'd love to have a Benz or BMW to drive. Feel free to send one my way (along with gas money and maintenance funds please).