That ministerial salary increase

LUCAS STOCK INDEXThe Lucas Stock Index (LSI) declined 1.16 percent during the third trading period of October 2015. The stocks of five companies were traded with 296,103 shares changing hands. There was one Climber and two Tumblers. The stocks of Demerara Tobacco Company (DTC) rose 0.49 percent on the sale of 1,103 shares. The stocks of Demerara Distillers Limited (DDL) fell 7.69 percent on the sale of 20,250 shares while the stocks of Republic Bank Limited (RBL) fell 0.87 percent on the sale of 9,294 shares. In the meanwhile, the stocks of Banks DIH (DIH) and Guyana Bank for Trade and Industry remained unchanged on the sale of 265,296 and 160 shares respectively.

Public Outcry

Ever since it was discovered that the new administration had increased the salaries of its ministers and parliamentarians, there has been a public outcry and groundswell of criticism for taking the action. Several contrasting perspectives have been expressed about the move. Some persons seem to believe that the administration was insensitive since it appeared to have offered the public servants increases that did not match those it gave itself. Some support the increase in the salaries, but felt that the timing was bad. Still 20150920lucas business  page newothers felt that the administration appeared to be in a rush to feather its own nest while leaving the rest of the public service behind. Further still, others wondered what the real issue was because there appeared to be rational reasons for increasing the salaries of the Ministers the way in which it was done. This article seeks to examine the financial impact of the salary increase from a different perspective in an effort to understand the anger that has consumed so many that supported the coalition’s campaign to electoral victory.

 

Aggregate increase

Lacking in skills of psychoanalysis, this effort will not seek to interpret the mind set of fuming and vexatious Guyanese. Instead, an effort will be made here to present the economic impact of the decision. To start, it would be useful to understand what the aggregate increase of the salaries for the