Wage increases – a factor in the election result
April 25th, 2018A business analyst argues that the consistent wage increases of the past three years played a significant role in the crushing electoral victory of Fidesz. He warns however that these were in part due to favourable international conditions.
In a lengthy analysis on Index, Gergely Brückner dismisses the widespread opinion that the government was returned to power by the electorate on 8 April simply as a result of its anti-immigrant campaign. That statement is inconsistent with its good showing among the relatively affluent cities. The campaign was important in the poor regions, Brückner writes, but among wage earners the main factor must have been the steady wage increases reported over the past three years, with a two-digit average hike in real terms last year. He attributes those developments to three factors: tax cuts by the government, the manpower shortage due to many Hungarians seeking employment in western Europe, booming export markets and European Union subsidies. The external factors may take a negative turn, he remarks, and warns that reserves should be piled up if the country wants to avoid hardship later when times get rougher.