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money. Lot of workers is demonstrating demanding the cancellation of a law draft regulating workers’ in Indonesia.
I am not going to argue against or in favor of the law.
However, I need to point out to all parties of how to improve workers’ salary and income in Indonesia.
What I mean by workers here are any people that work for money. That includes CEO, managers, entrepreneurs, and the self employed.
We may consider some of those people capitalists. However, they work for money. Hence they are workers rather than capital owners.
My idea comes 6 years ago when I am learning micro economic theory in college. It’s a regular undergraduate class. So nothing fancy. It’s a basic economic theory that’s established rather than cutting age.
We are discussing a question whether we should tax smoker or cigarette producers. The conclusion is that it doesn’t matter.
If governments tax smokers, then cigarette price will drop because cigarette manufacturers will have to reduce the price to persuade smokers to smoke.