Reducing inequality is better economics

The issue of increasing the minimum wage has again become headline material.

- ELFREN S. CRUZ

This seems to have become an annual ritual. It normally starts with the labor sector and some politicians proposing an across-the-board wage increase for low-income earners.

Then as usual, the Big Business sector will oppose with their usual argument. While they sympathize with the hardships that the average Filipino worker is undergoing, increasing wages is not the solution to improving the life of the workers. The main argument against a wage hike is that it will have an inflationary effect on the economy.

It is noticeable that those who are against the wage hike do not have any alternative proposals for improving the life of the Filipino masses. My own personal stand has always been that the ordinary Filipino is entitled to a life of dignity which can be attained either through being paid the living wage as the minimum or ensuring that there is an adequate social safety net for every Filipino.

The Filipino worker may not need a high wage hike if the state will provide his family with the basic needs. A family of four or five members, in order to live a life of minimum human dignity, needs adequate shelter, sufficient nutrition to prevent malnutrition and hunger and enough funds to decently clothe the members of the family. In addition, if the state provides quality education for even the poor families and the health care needed for the average family, then the Filipino family can rely on the state without having to demand higher salary for quality education and health care.