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'Money in hands of poor will benefit economy': Kejriwal defends minimum wage hike

Source:PTI
August 17, 2016

Defending his government's decision to hike minimum wages in Delhi, Chief Minister Arvind Kejriwal on Wednesday said money in the hands of the poor and middle class, and not "Ambani and Adani", will benefit the country's economy.

Kejriwal said it was to be seen whether the Bharatiya Janata Party and the Congress show the courage to take similar decisions in the states ruled by them. The chief minister was addressing a gathering of labour unions at his residence in New Delhi.

"I told those who are threatening to strike work and shut industries that overall business is anyway bleak across the country since no one has money in hand. When money will reach the poor then it will have a positive effect on the economy as demand and subsequently consumption will rise," Kejriwal said.

Interestingly, the ruling Aam Aadmi Party's trade wing has warned of a strike in Delhi in case the decision to raise wages is not withdrawn. It is also going to the raise the issue with Lt Governor Najeeb Jung.

"Policies have to benefit the poor. There will be an escalation of cost, no doubt, but in the middle term and long term it will benefit everyone when money will reach the middle class and poor," Kejriwal said.

Repeatedly referring to "Ambani and Adani" in his address, Kejriwal alleged that government policies are "deliberately" framed to ensure profit for few families in the country, leading to "deepening" chasm in the society and spike in unemployment and crime.

"We will have to implement it in Delhi and then raise our voice across the country. I urge Modiji to look beyond Ambani and care for the people. If the Centre wants then it can implement the same across the country in one go," he said.

Kejriwal had announced the government's decision the raise wages his Independence Day speech.

As per the proposal, the minimum wages for unskilled person will be Rs 14,052 against the existing Rs 9,568 in the national capital. Besides, the same for semi-skilled and skilled persons will increase from Rs 10,582 to Rs 15,471 and from Rs 11,622 to 17,033 respectively.

Source: PTI
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