No doubt that the government here in Oman has taken a step forward in pleasing its people and boosting its economy. This is all thanks to his Majesty the Sultan's due diligence. He has ordered that 50000 jobs be given and that every unemployed person to receive 50 Rials per month. This step was warmly welcomed by the people even though they aren't aware of the possible implications that occur, I have listed a few potential affects below:
1-Minimum wage will surely rise dramatically which will wipe some small businesses out. This shouldn't be a problem in the long run however, as spending power of individuals would increase and that in return would boost the economy and businesses in general.
2- Unemployment should increase in the short term as low paid workers resign from their minimum paid jobs if their wages aren’t increased. This will also only affect the economy in the short term as inflation will force the unemployed to re-seek employment.
3- Boosting the wages of the minimum paid workers will also cause a chain reaction and eventually boost all wage classes. This could prove to be both a problem and a blessing.
4- Spending power will surely boost the economy in the long run and also cause a drastic rise in inflation. However, given Oman's small population and the resources available in the regional nations I don’t expect to see hyper inflation as there won't be any shortage in supply.
Of course there are other numerous affects that could take place but are highly unlikely. There also are other predictions that are too far out into the future that I avoided writing here. Attempting to predict the state of the economy 10 years ahead of time is almost always a long shot.
1-Minimum wage will surely rise dramatically which will wipe some small businesses out. This shouldn't be a problem in the long run however, as spending power of individuals would increase and that in return would boost the economy and businesses in general.
2- Unemployment should increase in the short term as low paid workers resign from their minimum paid jobs if their wages aren’t increased. This will also only affect the economy in the short term as inflation will force the unemployed to re-seek employment.
3- Boosting the wages of the minimum paid workers will also cause a chain reaction and eventually boost all wage classes. This could prove to be both a problem and a blessing.
4- Spending power will surely boost the economy in the long run and also cause a drastic rise in inflation. However, given Oman's small population and the resources available in the regional nations I don’t expect to see hyper inflation as there won't be any shortage in supply.
Of course there are other numerous affects that could take place but are highly unlikely. There also are other predictions that are too far out into the future that I avoided writing here. Attempting to predict the state of the economy 10 years ahead of time is almost always a long shot.
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