Roberto Ortiz writes in El Deber:

What hides the double bonus

President Evo Morales signed on November 20, Supreme Decree 1802, which authorizes the payment of the double bonus to workers in the public and private sector. We must start from the economic statement that a bonus is a salary, as it is part of the cost we pay for the service of a worker. Therefore, we could conclude that wage is nothing more than a price equal to the price of rice, meat or hairdressing service. Actually, the name wage or only “aguinaldo” was given as a contribution to political discourse.

Speaking of prices, this Decree translates into a ‘price control’, which has political drift in economic problems. Starting problems, the first is the private entrepreneur – more than everything in the small entrepreneur-as this will be forced to pay a higher price for their workers, removing thus the possibility of generating profits or make future reinvestments, which create real wealth and increase in national production.

The second problem lies with workers themselves. While some have benefited from rising prices for their work, others will have lost their jobs. Anyone whose work is not valued in the new price will return to find employment, which can’t be overvalue in a certain amount a worker on the labour market work only by the fact of having become illegal employment by a lower price.

The third problem lies with the consumer. Real wages have their origin in the production and not the decrees and ministerial orders, therefore, this fictitious increase in the money supply will cause inflation in the family basket products prices, which remain high for much longer than the “aguinaldo” is received only once a year. It is clear that we are in the campaign, the Government needs to win votes and this time has been financed with our effort and money to do so, giving away our utilities and our taxes for extravagance and not for reinvestment in new businesses.

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