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Friday, February 16, 2018

Just raise the minimum wage to fight poverty is not enough

Photo: Nikolay Gyngazov/Global Look Rgege next year minimum wage (the minimum wage) should be compared with the cost of living. The job has given Vladimir Putin. The state Duma has promised to enact as soon as possible. Thus, the minimum wage equal to the subsistence minimum for the first time, although it has declared in recent years. Will this help in the fight against poverty? Details…

  • Turkey made the first payment for the s-400
  • The Ministry of Finance announced the placement of the third tranche of the national bonds
  • Gazprom has asked Ukraine to increase the transit due to the suspension of the “Nord stream”

Go to a section…”Sevastopol should become the southern capital”Photo: Vasily Batanov/RIA “news”,”If you spend time on the constant scandals, public discussion, and to care in other planes other than work, then you have nothing useful happens” – said the newspaper VIEW, the newly elected Governor of Sevastopol Dmitry Ovsyannikov. In particular, he commented on the subject of previous disagreements with the team of his predecessor Alexey Chaly. Details…

  • Crimean authorities estimated the non-recognition of elections by the European Union
  • The EU does not recognize elections in Crimea
  • Nebesa: Russia does not accept the nuclear ambitions of the DPRK

Go to a section…”Local residents have been warned that it was going to Maclay Fourth”Photo: John Oxley Library, State Library of Queensland”Maclay they remember and love, for the North-Eastern part of New Guinea it is almost a national hero. It should be used”, – said the newspaper VIEW, descendant of the legendary Russian traveller, speaking of the purpose of a new expedition to the Papuans is a unique for the Russian science and public diplomacy. Details…

  • The Russian 11356 frigates for India will receive the Ukrainian engines
  • VTSIOM has studied the opinion of Russians about the United educational space
  • Kozhin said the increased demand for missiles “Caliber” after testing in Syria

Go to a section…the United States remained a gap, a critically vulnerable to nuclear attackPhoto: Workman/WikipediaРассуждающие about the prospect of nuclear war between the US and the DPRK think in terms of a missile strike, the benefit is for the missiles, Pyongyang has bet. Meanwhile, it is obvious that such an attack is impossible. But it is theoretically possible the other is also nuclear and so devastating that America after he did not recover for a very long time. Details…

  • The Syrian opposition has officially confirmed the participation in the talks in Astana
  • Media: China is violating the laws of physics engine
  • The US national debt exceeded 20 trillion dollars

Go to a section…”Arrow from Ivanteevka” was inspired by the American experiencePhoto: from the personal pages vk.com the alleged shooter”Ivanteevka is a very beautiful, prosperous city with good, proper social environment. We need to understand what pushed a young man to such actions,” – said the newspaper VIEW Duma Deputy from the Moscow region Sergei Zhigarev. A student opened fire in class, according to classmates, was different unsociable disposition, however, he did not hide his intentions, no one took the example. Details…

  • Vandals damaged a number of facilities in the new Park “Zaryadye”
  • On the fact of robbery of the graduate of “factory of stars” opened a case
  • In the North of Moscow killed a mother with a three year old child

Go to a section…

Alexei Mukhin: regional elections in 2017. The results

It turned out that in Moscow the part of the opposition is still gaining a number of municipal mandates. “Apple” will even call it their victory. However, it became clear that Yabloko “took a bite” these mandates are not the “United Russia”.

Alexei Kolobrodov: Paradoxes Andropov

Yuri Andropov – the most mysterious of the country’s leaders in the twentieth century – a figure no less relevant than Vladimir Lenin and Joseph Stalin. The scale, of course, less, but we live in the country today, are largely modeled to them.
Details…Discussion: 23 comments

Andrei Babitsky: On the way Saakashvili may stand only nationalists like Yarosh

Even yesterday, bringing terror to the population of Ukraine, the security Service, which ruthlessly cracked down on dissidents, does not know compassion, uses torture and extrajudicial executions, turned out to be a broken tool.
Details…Discussion: 36 comments

    Go to a section…

    Online marathon “election Night – 2017”

    Discussion: 7 comments

    Putin held a plenary meeting of the Eastern economic forum

    Putin held an open lesson “Russia looking into the future”

    Discussion: 9 comments

      Go to a section…

      Defined “Miss America – 2018”

      For the first time in the history of the contest “Miss America” winner was the representative of North Dakota. 23-year-old Kara Mundu is the USA champion, and six years ago was marked by Obama for his merits in the field of philanthropy. Local media and bloggers, however, the winner dubbed the “fatty”Details…Discussion: 12 comments

      “Irma” flooded Miami

      The popular American resort of Miami in Southeast Florida, like many other cities of the coast of the Atlantic ocean, was almost flooded after a hurricane swept “Irma”. Only in the de-energized state of 3 million buildings evacuated nearly 6.5 million of itemattribute…

      Musk first showed SpaceX space suit in full growth

      Elon Musk in his blog posted photos of the new SpaceX space suit in full growth. Prior to that, he showed the helmet and upper part of the protective space suit. The man in the suit standing on the background of the ship Crew DragonПодробности…Discussion: 9 comments

        Go to a section…For whom do you support in the conflict between Saakashvili and Poroshenko?

        • I wish you success Saakashvili
        • I wish success to Poroshenko

        Alexey Chaly invited to make a Patriotic Sevastopol the capital of Russia. How do you feel about this idea?

        • Support
        • Patriotic capital should be another city
        • Patriotic do not need the capital

        Ramzan Kadyrov has expressed its disagreement with Russia’s position regarding Myanmar. Is it acceptable that the head of the Russian region publicly challenged the country’s foreign policy (which is not true to his official authority)?

        • Yes, a politician can always defend its position publicly
        • No, in this case, it’s insubordination
        • All depends on the personality of the head region

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          News of the HOUR:Turkey made the first payment for the s-400

          Missiles “Caliber” increased demand for robelplast of Crimea assessed the non-recognition of the elections Euroautogas the UN tightened sanctions against Chargeda exceeded US $ 20 trillion dellarovere outlined the condition for lifting the sanctions against Asciimation responded to the accusations Lavrov “dzhebhat an-Nusra”Britain convened a meeting of the UN security Council on the situation in Manmademoon were in the “Peacemaker”Became known, the value of the gift Putin the inhabitant of Izhevsk trips to Sociable welcomed the talks between Russia and Germany on the security of SMM on Ukrainerussia 11356 frigates for India will get digitalmaverick Ukrainian President Herman Klimenko returned to Facebook

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          The Russian Embassy in the US said about bullying of the state Department

          support for Ukraine

          The EU does not recognize elections in Crimea

          information war

          The Polish General said Putin “dictates the terms” in connection with the exercises “West-2017”


          Became known the plans for new restrictions on American diplomats in Russia

          “with the same tenacity”

          Poroshenko hoped for a breakthrough Saakashvili across the border of Georgia

          90 seconds

          The defense Ministry released a video of the crew of tank T-90

          incorrect analogy

          Alternative comparison of the Crimea with the GDR is unlikely to appeal to Merkel

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          The historian spoke about the myths surrounding the battle of Borodino

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          Andrei Babitsky: In the boat of Ukrainian statehood punched a huge hole

          the supply of American weapons

          Denis Seleznev: in fact, the “issue price” for Ukraine announced

          “Another September 11”

          Dmitry Drobnicki: whether the “Chilean miracle” and is the author of Augusto Pinochet?

          in your opinion

          For whom do you support in the conflict between Saakashvili and Poroshenko?

          Russia is faced with “supernova poverty”Just raise the minimum wage to fight poverty is not enough

          Next year the minimum wage (SMIC) should be compared with the cost of living. The job has given Vladimir Putin. The state Duma has promised to enact as soon as possible. Thus, the minimum wage equal to the subsistence minimum for the first time, although it has declared in recent years. Will this help in the fight against poverty?

          President Putin instructed to increase the minimum wage to a level not below the subsistence minimum by 2019 at the latest. And from 1 January 2018 to raise the minimum wage from the current 71-72% from minimum to 85%.

          The state Duma is ready to “sit together with the government and to issue legislatively the decision of the President in the form of a bill,” said a member of the lower house Committee on labor, lipolytica and veterans ‘ Affairs Andrey Isaev. According to him, “the adoption of this law will be one of the most important tasks of the forthcoming autumn session”.

          Authorities have long been talking about the need to equate the minimum wage to a living wage, but this is not so simple. In the Labour code, adopted in 2001, already States that the minimum wage can not be below the subsistence level of the working population. This year for the minimum wage come from. In may, Prime Minister Dmitry Medvedev instructed to prepare a bill to raise the minimum wage to the subsistence level. Now joined Vladimir Putin, who not only set the task, but also marked the timing of its implementation.

          From July the minimum wage increased from 7500 to 7800 rubles. The living wage is set each quarter, therefore, reflects more the real price and the needs of man. So, according to the labor Ministry, in the second quarter of 2017 the subsistence minimum of able-bodied citizens was equal to 11 163 rubles. Thus, the government should raise the minimum wage by 43% from the current level of the subsistence minimum.

          The main task of increasing the minimum wage to fight poverty. According to Rosstat, in 2016, nearly 10% of workers received wages below the subsistence level, of which about 1-2% below the minimum wage. Although the pay is less than the level of minimum wage is prohibited, but there are exceptions – if a person works, for example, full-time, it may well get a conditional minimum wage. Accordingly, the adjustment of the minimum wage with the minimum subsistence level should contribute to the fact that the 8-9% of the workers finally come out from behind the poverty line and will receive a more adequate salary.

          The number of employees affected by the reform are small, says researcher of the Institute of social analysis and forecasting Ranhigs Victor Lyashok.

          Reform will directly affect 3-4 million people, or 5-6% of all employees,

          he said in his report. But we must understand that we are talking about officially working. And raising the minimum wage will not affect those who work in the informal sector and self-employed and entrepreneurs.

          In any case, raising the minimum wage is not a panacea for poverty. Moreover, this step carries negative consequences.

          “That means raising the minimum wage for the labor market? Among economists there is no single answer to this question. Although a simple economic model shows a decline of employment and rise in unemployment. In case, if the new level of the minimum wage is “too high”, more sophisticated theoretical models do not give such a clear answer,” says Victor Lyashok in the report.

          In mono, for example, raising the minimum wage can actually increase employment. But when the labor market is large and there are wages in envelopes, this effect may not be. Now those who receive a formal salary at the level of the minimum wage, the employer hands can pay significantly more. Therefore, the increase in the minimum wage can only lead to the fact that more workers will receive salaries in envelopes.

          “On the one hand, this is a big step towards creating a more equitable welfare state. On the other, is an attempt to get into the pocket of business and entrepreneurs, as all these liabilities will fall on their shoulders,” says development Director UK “solid Management” Sergey Zvenigorodsky. Of course, increase the budget expenditures on wages of public sector employees.

          “A slight improvement feel those who really gets the minimum wage – janitors and social workers, laborers, etc. it is mainly in the fiscal area. As for the middle class and those whose income per month is comparable with the first payment on the mortgage, this measure hardly will have an effect,” he adds.

          Previous experience in a drastic increase in the minimum wage shows that the effects can be contradictory.

          In September 2007 the minimum wage increased more than two times (from 1100 to 2300 rubles), and from January 2009 was raised to 4330 rubles. That is in less than a year and a half minimum wage was increased almost four times. What it led to? Victor Lyashok, based on three studies, says that one of them showed that the corporate sector experienced a decline in the inequality of wages. The increase in the minimum wage led to a rise in informal employment and youth unemployment. Another study says that raising the minimum wage good for state employees: it not only increased the wages from low-paid workers in the budgetary sector, but also generally raised the net wages in the public sector.

          But the main task of increasing the minimum wage, the recall is the reduction of poverty. A third study showed that an increase in the minimum wage in 2007-2009, of course, has contributed to poverty reduction, however, is fairly limited.

          Finally, the effect of growth in the minimum wage will vary from region to region. The fact is that since 2007, the regions can set their own level of the minimum wage, the main thing – not below Federal. And this opportunity was used by 53 regions of Russia, and in some regions this figure was even higher Federal poverty level guidelines. Of course, that wealthy regions such as Moscow, St. Petersburg and Khanty-Mansi Autonomous district and the Northern territories – Murmansk oblast, Yakutia and Kamchatka Krai. The point is that in 44 regions, the minimum wage is already at the subsistence level. I mean, technically they already fulfilled still discussing the bill.

          “This means that the reform will primarily affect poorer regions with high informal employment where the share of workers receiving wages below the minimum wage, substantially above 10%,” – said Lyashko.

          Thus, to solve the problem of poverty in the regions with a weak economy one raising the minimum wage impossible. “The problem of low level of minimum wage should be addressed at the regional than at the national level,” – said Lyashko. In other words, to raise the level of welfare in the region, to raise its economy and attract additional investment.

          By and large, both the average and the minimum wage and a living wage – not nearly reflect Russian economic realities. “A living wage is really the minimum amount that can accommodate an adult in a large city in Russia. This figure does not take into account the growth of prices, which is officially now stands at 4-5% per year, and informally – 10-15%,” – said Kirill Yakovenko from “ALOR Broker”.

          The minimum wage may create unemployment. “Some citizens are deprived of the opportunity to get a job that involves paying less than the minimum wage, and employers are not allowed to give out such work. As a result of growing grey employment, which could be white, if the minimum wage did not exist. From the point of view of the capitalist economy the employer should be able to assign the wages to which the employee agree and state intervention in this process causes inefficiency, leads to the fact that those who works and earns, are forced through taxes to pay for those who are without work,” – says Yakovenko.

          Therefore, due to only a single adjustment of the minimum wage and a living wage to raise the standard of living of Russians will not work. However, other measures to stimulate the economy, attract investment, etc. has not been canceled.


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