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Brazilian President Luiz Inácio Lula da Silva decided to raise the monthly minimum wage from its current level of US$ 133.69 (300 reais) to US$ 155.97 (350 reais), as of April.
The official announcement of the decision was made by the ministers of Labor, Luiz Marinho, Planning, Paulo Bernardo, and the presidential advisory staff, Dilma Rousseff. To take effect, the new value of the minimum wage must be approved by the National Congress. The minimum wage is usually readjusted on May 1, the date that Labor Day is commemorated in Brazil. The decision to move the raise to April was the result of negotiations with the workers' central unions, which were demanding that it be implemented on January 1 of each year. During the announcement of the new minimum wage, Minister Marinho affirmed that, in February, the government will begin negotiations with the workers' central unions over a policy to beef up the minimum wage over the long term. "President Lula has always said: We will not commit any irresponsible act that jeopardizes the country's financial and economic health," Marinho commented in a press conference with reporters. He emphasized that the US$ 21.28 (50 reais) increase in the value of the minimum wage is "in perfect harmony" with the country's reality. ABr
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An increase in the minimum wage is normally supposed to reduce wealth inequality, especially in Brazil ! Correct ?
Your problem is that millions and millions of workers and most state workers salaries are based on a multiple of the minimum wage, whatever the multiple is.
Now assume one worker has 1 minimum wage, the second worker has 5 minimum wages, and the third has 10 minimum wages.
The first worker increases his salary from Reais 300 to 350, the second from 1500 to 1750 and the third from 3000 to 3500.
Correct ?
Then can anyone explain how the wealth inequality has been REDUCED ???????????
Because all those on a multiple wage contract get the same percentage increase of
17 %, whatever they earn, even if the multiple is 30, 50 or more !
This clearly means that Lula is again buying vote not only with poors, but also with the middle and upper class.
Even confirmed by the fact that this year the increase is effective from April instead of the usual month of May, exception happening curiously enough......in an election year, giving him more time for his campaign. Anyone can guess why.
Is Brazil a true democracy ? I doubt it when there is vote buying at every level from citizens to political parties involving the highest politicians : the lawmakers and the government members themselves.
Nothing will ever change with such a climate.