Nominal Wage – Goodwill Savannah GA http://goodwillsavannahga.org/ Wed, 04 Aug 2021 13:58:22 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://goodwillsavannahga.org/wp-content/uploads/2021/04/cropped-goodwill-32x32.png Nominal Wage – Goodwill Savannah GA http://goodwillsavannahga.org/ 32 32 2021 wage subsidy program differs from last year: Minister of Manpower http://goodwillsavannahga.org/2021-wage-subsidy-program-differs-from-last-year-minister-of-manpower/ Wed, 04 Aug 2021 13:02:54 +0000 http://goodwillsavannahga.org/2021-wage-subsidy-program-differs-from-last-year-minister-of-manpower/

Jakarta (ANTARA) – Minister of Manpower Ida Fauziyah has drawn attention to several differences between the wage subsidy program (BSU) in 2021 and that of the previous year.

“There were at least three differences from the BSU last year,” Fauziyah said in a press release in Jakarta on Wednesday.

The first difference concerns the criteria for BSU beneficiaries, in particular on the salary or salary limit, the region and the sector of work concerned.

Fauziyah noted that the 2021 BSU will target those with a maximum salary of Rs 3.5 million per month. For workers in regions with a regional minimum wage (UMR) above 3.5 million rupees, the wage will be rounded to the nearest hundred thousand.

For example, for a UMR of Rp 4,416,185 in Jakarta, it will be rounded to Rp 4.5 million.

Related News: Ministry Still Preparing 2021 Wage Subsidy Program for Workers

“With regard to the aspect of regional borders, the workers entitled to BSU are those who work in the PPKM level 3 and level 4 zones set by the government, as stipulated in annex I to regulation number 16 of 2021 from the Ministry of Manpower, ”she explained.

This year’s BSU is a priority for workers operating in the consumer goods industry, transportation, miscellaneous industries, real estate, and trade and services, except education and health services.

“Meanwhile, last year, the maximum salary for BSU beneficiaries was 5 million rupees, and there were no regional or sectoral restrictions,” Fauziyah said.

The second criterion involves the amount of funds the BSU recipient will receive this year, reaching 1 million rupees for two months, which is different from last year’s face figure totaling 2.4 million rupees for four months.

The last aspect concerns the distribution patterns, in particular in the accounts of BSU beneficiaries. All the money will be channeled through public enterprise banks (Himbara), such as BRI, BNI, BTN and Mandiri. Last year, the disbursement of BSU funds was made through the personal accounts of BSU beneficiaries.

The minister is optimistic that this year’s distribution of BSU would run smoothly, help workers with declining incomes and spur economic growth.

Related news: Government to expand distribution of low-wage labor aid until second quarter of 2021
Related news: Jokowi launches wage subsidy support for 15.7 million workers

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Why Washington Hates This New Class of Crypto http://goodwillsavannahga.org/why-washington-hates-this-new-class-of-crypto/ Tue, 03 Aug 2021 10:00:00 +0000 http://goodwillsavannahga.org/why-washington-hates-this-new-class-of-crypto/

The american government is about to wage war on a new, burgeoning cryptocurrency class called stablecoins.

While bitcoin and similar cryptos grab the headlines, it is the stablecoins that governments and central banks really fear and will fight fiercely.

Unlike bitcoin and its sidekicks, which fluctuate like a roller coaster, stablecoins are tied to real assets, such as the dollar or gold. This means that they can be easily used for daily business transactions as well as for long term contracts. No one in their right mind would take out a bitcoin-denominated mortgage, where you could end up owing ten times the face price of your house.

This new class of crypto exploded from a total value of $ 28 billion at the start of the year to $ 110 billion in July. Its use in commercial relations is also increasing. No wonder: Done well, stablecoins are the equivalent of cash.

It can be seen how stablecoins will pose a deadly threat to today’s payment processing systems, which are complex, cumbersome and expensive. Thanks to blockchains, stablecoins eliminate the middleman. For example, credit card transactions typically cost merchants 2-3% fees. With stable coins, these fees will disappear.

Stablecoins will also make cross-border trading and remittances much easier, while eliminating the usual fees.

The ultimate savings for consumers and businesses could run into literally hundreds of billions, if not billions of dollars per year.

This would free up huge sums of capital to finance new businesses and significantly increase productive investment in existing businesses. As a result, the standard of living will increase significantly.

The apparent goal of Treasury Secretary Janet Yellen’s July meeting with the President’s Financial Markets Task Force seemed benign and appropriate. To quote Yellen, “Bringing the regulators together will allow us to assess the potential benefits of stablecoins while mitigating the risks they may pose to users, the markets or the financial system.”

Some common sense regulations are in order, notably to ensure that a stablecoin issuer actually has the assets necessary to safeguard its coins, just as investors are assured that a money market fund actually has the assets it needs. he claims to have.

But don’t be fooled by the real agenda here. Regulators are realizing that stablecoins threaten not only existing payment systems but also, and more fundamentally, the very monopoly of governments on issuing currency. Governments do not want any challenge to this monopoly.

Here, the fireworks have only just begun.

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Viewpoint: India needs another round of landmark economic reforms http://goodwillsavannahga.org/viewpoint-india-needs-another-round-of-landmark-economic-reforms/ Fri, 23 Jul 2021 18:08:00 +0000 http://goodwillsavannahga.org/viewpoint-india-needs-another-round-of-landmark-economic-reforms/ After the economic reforms of 1991, India stood out from its peers. Its dollar GDP has increased 9.71 times, compared to 5.1 times for Thailand, 4.8 times for Turkey, 3.12 times for Brazil – and 38.44 times for the outlier China. Thirty years ago, India could barely pay for three weeks of imports. Today, India’s foreign exchange reserves have grown more than 100 times, topped $ 600 billion, and are the fourth largest in the world.

In India’s early years, we internalized poverty. In debates over whether grants or infrastructure should be the government’s priority, grants won hands down. Our views are more balanced now. But another round of era-defining bets is needed.

First of all, the reverse. Nominal wage growth in India has averaged 9% over the past decade, resulting in real wage growth of 5% and over 20% growth in disposable income. This surge, combined with the fact that most consumer sectors have limited penetration, has provided double-digit growth for decades for companies as diverse as automotive, telecommunications and insurance.

A report by Mirae Asset Management described how emerging markets contributed less than 15% to global consumption growth in the late 1970s. This figure has risen to 75% in the past decade. India has witnessed this history of consumption and will continue to be a powerful force. According to CLSA, in most consumption segments, Indian growth rates will dominate countries such as China, Indonesia and South Korea, mainly due to reduced dependency ratios and disproportionate growth in disposable income. .

This dynamism is amplified by seemingly opposing forces: rural demand and digitization. A recent Nielsen report showed that overall growth in Fast Turning Consumer Goods (FMCG), which had been 13.4% in March 2019, fell from a low of 20% in mid-2020 to 9, 4% in March 2021, before the second wave of Covid. to hit. The bursting of this increase was biased: demand in subways had increased by 2.2%, demand from small towns was up 6.9%, but rural demand had risen by 14.6%.

Add technology. The gross value of e-commerce goods has increased by 42% over the past five years. India has 57 unicorns. It leads real-time payments, with 25.4 billion transactions last year, compared to 15.7 billion for second-placed China. Such trends will be a game changer.

Maximizing this will require multiple initiatives, ranging from e-commerce and agricultural productivity regulations to the promotion of FinTech and infrastructure modernization, to expanding India’s tax net and deregulating trade. These will not fit perfectly in a left-right box. India needs to be more pro-business. Yet it needs more state capacity.

This leads to the next central question: individual heroism in the midst of institutional failure. Indian institutions generally respond to a range of conflicting demands. Regulators are often catching up with market realities. And many government policies have the crisis as their frame of reference.

Institutions, long neglected or treated as political vassals, are incongruous with our modern aspirations. The police generally mimic the fault lines of Indian castes. The backlog of 26 million cases is appalling. Regulators are trapped, less by ideology, more by vested interests. Over the past 50 years, India’s 4,817 legislators – MPs and MLAs – have spent less and less time in their elected office.

Contrary to popular perception, the Indian bureaucracy is not big and clumsy, but small and struggling. Compared to other G20 countries, it has the lowest number of bureaucrats per capita.

Traditional rigidities in public finances have spiraled. According to Moody’s, interest payments hit 28% of GoI income, further reducing degrees of freedom and crowding out productive investment. National elections held each year serve as a premature referendum. Short-term opportunism dominates. Inertia is accepted as a by-product of democracy, punctuated by an overreaction provoked by events. “Confusionism,” a term coined by Stephen Walt of Harvard to describe US foreign policy, often prevails.

Establishing institutions requires structural changes. Many are on the way. The policies of lateral entry into the Indian bureaucracy will modify its genetic heritage. Advancing federalism and delegating power to states gives them a sense of agency and increases their efficiency. If India drops some central taxes in favor of state-imposed ones, it will further strengthen the powers of states. Campaign finance, at the heart of India’s dysfunctional sponsorship networks, is undergoing a major overhaul. Slowly, but surely, a combination of rule of law, markets and incentives is being addressed.

India’s history in 1991 was written by a month-old coalition government trying to break India’s record of “playing with matches in a firecracker factory”. The story of India in 2021 is expected to fire people’s minds and must be written by a government with the strongest majority in India’s recent memory. He must use his political capital wisely. Playing to win cannot depend on the government alone. And that is not easy.

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Removing subsidies will increase Nigeria’s economy by 5% http://goodwillsavannahga.org/removing-subsidies-will-increase-nigerias-economy-by-5/ Fri, 23 Jul 2021 02:02:33 +0000 http://goodwillsavannahga.org/removing-subsidies-will-increase-nigerias-economy-by-5/

Nigeria’s total revenues are expected to increase by 5% by 2024 if the federal government is able to remove the costly fuel subsidy by 2022, according to a report by the Economist Intelligence Unit (EIU).

This would mean a significant increase in Nigeria’s income relative to gross domestic product (GDP). In 2020, the general government revenue as a percentage of GDP in Nigeria was 6.3%.

Finance, Budget and National Planning Minister Zainab Ahmed said the government wanted to end oil under-recovery, known as the fuel subsidy, but noted that the removal of oil help is unpopular. The subsidy payment is expected to engulf 900 billion naira in 2022.

The EIU in its national report on Nigeria said that while there may be a new impetus to divest from loss-making state-owned enterprises as a way to alleviate fiscal pressures, the proceeds from privatization will not compensate for an overwhelming tax. low or excessive dependence on income oil.

In the recently published report, The Economist predicted that Nigeria’s public debt would reach 35.4% of GDP by 2025. The government raised its public debt ceiling to 40% of GDP to accommodate larger budget deficits in the medium term. and to account for the securitization of the deficit financing of the Central Bank of Nigeria (CBN) as long-term debt.

The Economist also forecast that the federal government would increase its value-added tax (VAT, currently 7.5 percent) to 15 percent by 2025 at the latest to fill public finance deficits.

“We are forecasting three equal increases in the VAT rate, bringing the rate to 15% by 2025. The first is expected in 2022, before the next elections, but apparently inevitable given the increasing debt burden, with further increases in 2024 and 2025 “, he added. the report said, stating that “Even so, we expect tax revenues to peak at just five percent of GDP in 2024, which also assumes no fuel subsidies (the costs of which are deducted from revenues) beyond 2022. “

The London-based research unit said increases in the VAT rate and rising oil prices would reduce Nigeria’s budget deficit to 2.6% of GDP in 2023-24, but lower average world prices oil in 2025 will cause the deficit to widen to three percent of GDP that year.

The report predicts that the government will end its pro-market reform program to avoid making the situation worse, with long-term implications for critical inputs such as electricity supply.

“Short-term economic growth will be dampened by high inflation and unemployment, as well as weak nominal wage and consumption growth. Monetary policy will tighten from 2022. A current account deficit in 2021 and low short-term interest rates will lead to a devaluation of the naira.

“The Economist Intelligence Unit expects the balance to turn into a surplus in 2022, and the naira will remain fairly stable until 2025, when we expect another devaluation,” the report said in part. obtained yesterday by LEADERSHIP.

Noting that budget overruns have rarely come close to the original plan for many years, analysts said the policy is clearly geared towards austerity, with the expenditure-to-GDP ratio declining by around 8% in 2021 in the MTEF / FSP. , at 7.6. percent in 2022, following cuts in the capital budget of just under 760 billion naira, allowing the recurrent budget to increase for items such as personnel costs.

Political stability

Economist Intelligence Unit Chairman Buhari will come under immense pressure to stabilize Nigeria, but a myriad of security threats will prove unmanageable as the military and police are overwhelmed and unable to cope with security crises simultaneous.
“The government will be unable to regain full dominance over the northeast,” he said.

Noting that Nigeria has a system resilient enough to keep the government in power, the EIU said it would, however, leave many parts of Nigeria very dysfunctional. “Security concerns will be pronounced in many parts of the country, with unrest in the southeast attributed to secessionist groups in Biafra and a further increase in kidnappings by organized criminal networks.
“Banditry and violent crime will remain pervasive, and other parts of Nigeria may begin to resemble the northeast as, essentially, lawless areas, neglect of the periphery may eventually reach a point of implosion for overall stability, but we do not expect this during the forecast period 2021-25. “

Exchange

The EIU said foreign exchange restrictions on various imported products, including staple foods, and currency movements are cost push factors, but the base effects will reduce domestic food prices in the second. half of the year.

Inflation

Analysts at The Economist magazine’s research arm said they expect annual inflation to start falling from 2022 to an average of 10% in 2024 if the exchange

the rate stabilizes and the CBN tightens its monetary policy.
He said exchange controls on imported goods, conflicts in the middle belt – Nigeria’s breadbasket – and a possible return to market prices for fuel will be
avoid faster deflation.

He also claimed that the devaluation of the currency in 2025 would cause the average rate to rise again, to 12.5%.

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Whitmer veto GOP bill to end extra unemployment benefits http://goodwillsavannahga.org/whitmer-veto-gop-bill-to-end-extra-unemployment-benefits/ Tue, 20 Jul 2021 20:41:48 +0000 http://goodwillsavannahga.org/whitmer-veto-gop-bill-to-end-extra-unemployment-benefits/

Gov. Gretchen Whitmer on Tuesday vetoed a GOP-backed bill that would have prevented the state from handing out the additional $ 300 federal weekly unemployment benefits made available due to the COVID-19 pandemic.

But the governor hinted at his willingness to end the allowance in exchange for lawmakers increasing the amount of money unemployed people typically receive.

After:Michigan House votes to end weekly $ 300 unemployment bonus

After:Exemptions for applicants asked to re-qualify for unemployment benefits could arrive by Monday

In theory, the bill prevented the state from distributing additional pandemic relief after July. As Whitmer noted in his veto letter, because lawmakers did not get enough votes for the bill to immediately become law, it would not have taken effect until next year anyway.

Whitmer also argued in his letter that even though the bill took effect immediately, it violated federal law because Michigan failed to give the Federal Department of Labor the required 30 days notice before canceling the benefits. .