Labor groups hit gov’t over shrinking purchasing power

IMAGE: Daniella Marie Agacer

The matter of inflation returned over the weekend and snapped at no less than President Marcos as labor groups scored the government for the widening gap in purchasing power and the quickly rising cost of living.

Jerome Adonis, secretary general of Kilusang Mayo Uno, criticized the President for “running away from wage workers” and opting to spend Labor Day with US President Joe Biden rather than hearing workers’ concerns.

Mr. Marcos is set to leave for the United States on Sunday for an official visit.

Adonis also blasted Socioeconomic Planning Secretary Arsenio Balisacan for advising House representatives last February that a legislated wage hike would “do more harm to the economy.”

“Keeping the minimum wage low is what’s harming the economy. Why? Because we can’t buy the basic necessities in the market … A wage increase would therefore enhance the economy,” Adonis argued.

But Balisacan only reiterated an accepted economic truism that too much cash in any economy could lead to hyperinflation, like in Argentina, Venezuela and Lebanon.

The National and Economic Development Authority chief also said the government’s priority was to increase the quality of jobs in the country and this was best accomplished by more investments.