SALARY INCREASE: solution to price hike
By anna18
@anna18 (142)
Philippines
March 7, 2011 4:58am CST
Almost all countries are experiencing price hike in all commodities. The best solution for this is salary increase. what do you think?
2 responses
@beamer88 (4259)
• Philippines
9 Mar 11
Personally, I think it's only a temporary solution. I'm not an economist so I might be wrong but I think adjusting salaries in order to cope with price hikes has a negative side to it. I mean, if the increase is across the board, like everyone's salary is adjusted and everyone can now afford to buy commodities, demand will increase while supply decreases. Eventually, the short supply in commodities will jack up the prices and as such, the increase in everyone's salaries will become insignificant. It's a vicious cycle really.
