Salary increases alone not enough

  The government’s proposed wage scale hike has hit a dead-end as the debate rages over how the salary increases will be funded, whether by raising taxes or other channels. However, this is not the right question to ask. The fundamental question is: How do we improve the quality of life for Lebanese citizens?  Salary increases will not be enough to improve our purchasing power. If a public sector employee’s pay packet increases, so too will the prices of essentials from food to rent — the net improvement in living standards will be minimal. The government must focus not only on increasing income but also managing the spiraling costs of living. Yet, a solution is within the government’s reach. It will require a combination of policy initiatives that fundamentally alter the supply-demand balance within the market, increase competition and control inflation.  For example, food prices in Lebanon have risen by