THE CHEKING PROCESS – An increase in the minimum wage risks causing prices to rise, leading to an “inflationary spiral”, warned Bruno Le Maire. Is right ?
THE QUESTION. While the rise in consumer prices has reached 3.6% over the last twelve months according to INSEE, purchasing power has been shaken up by soaring prices for energy and certain food products. And the most modest households are hit hard because they devote a larger part of their budget than the average French to this type of expenditure. Isn’t it time to givea helping hand» at the minimum wage, the guaranteed interprofessional minimum wage? Not be satisfied with the automatic increase provided for by law?
Read alsoInflation: further price increase expected on shelves
No, answers Bruno Le Maire. Because in this case, “prices catch up with wages and wages catch up with prices in a kind of parrot scale that never ends, and it is the employees who end up losing”, explained Sunday the Minister of Economy and Finance during the Grand Jury RTL-Le Figaro-LCI. “This is what we experienced after the first oil shock, in 1973, it is the famous price-wage loop”…
This article is for subscribers only. You have 89% left to discover.
Cultivating your freedom is cultivating your curiosity.
Keep reading your article for 1€ the first month
Already subscribed? Login