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皇冠体育app needs to increase salaries to stimulate economy

(chinadaily.com.cn)
Updated: 2007-05-28 17:33
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The Ministry of Labor and Social Security announced it will increase incomes of employees and is currently in discussions about when and how this will be implemented.

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皇冠体育app News agrees with the government. In an editorial, the paper said if employees' incomes are too low, it could hit the economy hard. For example, a software engineer in 皇冠体育app only can earn 40 percent salary of what an Indian software engineer makes. The huge gap between salaries leads to brain drain of Chinese software engineers to India.

According People's Daily Overseas Edition, improving salaries will entice high-tech workers to get better education, and in the end get better-paying jobs. This is also the case in India, which has shown the country has become successful in this field.

However, compared with India, 皇冠体育app has a faster growinggross domestic product(GDP) but the salaries aren't keeping up. Statistics from the International Labor Organization show the average output in 皇冠体育app increased 63.4 percent from 2000 to 2005, much higher than the 26.9 percent in India. But this economic success is not reflected in the employees’ incomes. The slow increase of salaries leads to low consumption, which depresses the national economy.

This conclusion is similar to aWorld Bankstudy released in February. It also said the economic downturn in 皇冠体育app is because of the low salary, not high savings. 皇冠体育app News suggests 皇冠体育app stimulate the domestic economy by improving people's salaries.