| 27 May 2024, Monday |

Increasing the minimum wage: a new disaster for the country!

Obviously, the purchasing power has degraded by more than 90%, and wage reconsideration is required; nonetheless, increasing wages arbitrarily will drive the country into the unknown.

The government system and elections are preparing for a new series of ranks and salaries, but with a new look that will result in the Banque du Liban printing hundreds of billions of Lebanese pounds without any financial or economic plan.

If we just consider raising the transportation allowance to 65,000 for 320,000 civil and military employees, the cost of increasing the money supply through printing money is expected to be 5,000 billion Lebanese pounds per year.

It is worth noting that the money supply has risen from less than 5000 billion Lebanese pounds before 2020 to more than 40 thousand Lebanese billion pounds now, and if printing continues to fund the increases, the monetary mass will rise by 2,000 billion LBP per month in the first months of next year, surpassing 50 thousand billion LBP.

As a result, increasing the transportation allowance and providing education aids has become a reality, and increasing wages in the public and private sectors, whether through advances or partial raises, will have an influence on the financial balance and the black market dollar.

  • Sawt Beirut International