Why salaries aren’t going up

Raising salaries is said to be the best medicine for rising prices; it is easy, it is clear - and it is wrong. Runaway prices can only be reined back in by liberating competition from the constraints of the cartels and exercising proper oversight of the entire supply chain. Raising salaries, at the very best, will merely offset the impact of high consumer prices on purchasing power. Even so, the Greek government, which often talks about how great it would be for salaries to go up, is doing everything that needs to be done to keep them low.

One-third of salaried employees in Greece are paid below 800 euros, 53% earn up to 1,000 euros a month and just 10% make 2,000 euros or more - all before deductions. This is the reality and it won't change no matter how many "Greek statistics" are bandied about in the hunt for votes. The Greek model is based on cheap labor and is defined...

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